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P18 www.africanreview.com CONSTRUCTION An analysis of construction trends P44 POWER South Africa’s dominance as the only nuclear power provider is set to change P34 MINING De Beers and Botswana: a successful partnership P66 Europe 10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12 TECHNOLOGY The fast adoption of mobile money systems P20 MARCH 2018 FIT FOR DEVELOPMENT Is private equity growing in the region? 54 YEARS SERVING BUSINESS IN AFRICA SINCE 1964 BAUMA CONEXPO AFRICA Showcasing the latest industry technologies in construction machinery “ We need to communicate better about the solutions we have in Nigeria ” Uzoma Dozie, CEO, Diamond Bank P50 P22 P41 NEW HORIZON Update on the New Coastal Road on Reunion Island

NEW HORIZON - African Review

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P18

www.africanreview.com

CONSTRUCTION An analysis of constructiontrends P44

POWERSouth Africa’s dominance as the only nuclear power provider is set to change P34

MINING De Beers and Botswana:a successful partnership P66

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

TECHNOLOGYThe fast adoption of mobilemoney systems P20

MARCH 2018

FIT FOR DEVELOPMENTIs private equity growing in the region?

54YEARS

SERVING BUSINESS INAFRICA SINCE 1964

African Review of B

usiness and TechnologyMarch 2018

Volume 54 N

umber 2

www.africanreview

.com

BAUMA CONEXPO AFRICAShowcasing the latest industry technologies

in construction machinery

“ We need to communicate better aboutthe solutions we have in Nigeria ”

Uzoma Dozie, CEO, Diamond Bank

P50

P22

P41

NEW HORIZONUpdate on the New Coastal Road on Reunion Island

ATR�March�2018�-�Cover_Layout�1��22/02/2018��16:24��Page�1

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P18

www.africanreview.com

CONSTRUCTION An analysis of constructiontrends P44

POWERSouth Africa’s dominance as the only nuclear power provider is set to change P34

MINING De Beers and Botswana:a successful partnership P66

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

TECHNOLOGYThe fast adoption of mobilemoney systems P20

MARCH 2018

FIT FOR DEVELOPMENTIs private equity growing in the region?

54YEARS

SERVING BUSINESS INAFRICA SINCE 1964

BAUMA CONEXPO AFRICAShowcasing the latest industry technologies

in construction machinery

“ We need to communicate better aboutthe solutions we have in Nigeria ”

Uzoma Dozie, CEO, Diamond Bank

P50

P22

P41

NEW HORIZONUpdate on the New Coastal Road on Reunion Island

Cover picture: The New Coastal Road, which is being built onReunion Island. © SCIMATCover Inset: Uzoma Dozie, CEO of Diamond Bank. © Diamond Bank

Serving�the�world�of�business

Audit Bureau of Circulations -Business Magazines

Editor’s NoteWelcome to our March issue. It's that time again when bauma Conexpo Africa hits Johannesburg

from March 13 to 15, attracting the leading players of the construction and mining industry. Theywill be showcasing their latest products and taking advantage of new opportunities emerging in theAfrican markets (page 41). Good luck to you all.

There is room for optimism as construction activity picks up on the continent with a range ofexciting small and large-scale projects happening across the region (page 44). We examine what ishappening with the world’s most expensive road project on Reunion Island – an impressive 5.4kmviaduct being built in the Indian Ocean to replace the inland route (page 50).

Elsewhere in this issue, our resident economist Moin Siddiqi shares the best strategies for privateequity investors to implement for successful returns in Africa (page 22), and how the manufacturingindustry in Nigeria is set for a boost as Peugeot Automobile Nigeria (PAN) regains its leadership role incar manufacturing (page 24).

Samantha Payne, Editor

Contents18 Profile

Uzoma Dozie, CEO of Diamond Bank, speaks to AfricanReview following the company's appointment as adviser atthe World Economic Forum.

20 TechnologyA summary on how mobile money systems aretransforming lives thanks to companies such as MTN,Huawei and Xpress Money.

22 FinancePrivate equity investors can take advantage of the Africanmarkets if they invest at the right price and having theright team on the ground. Economist Moin Siddiqi tells usmore.

34 PowerSouth Africa has been leading the way in generatingnuclear power, however other African countries areconsidering nuclear as another potential energy source.

50 ConstructionThe New Coastal Road on Reunion Island will be partiallyopening later this year. We look at what remains to bedone and the major brands involved in the €1.6bn project.

66 MiningHE Sadique Kebonang, Botswana's minister of mineralresources, and Bruce Cleaver, CEO of De Beers, speak todelegates at Mining Indaba 2018 about the success behindtheir special partnership.

P18

P50

P34

P20

Editor: Samantha PayneEmail: [email protected]

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

Managing editor: Georgia Lewis

Contributing editor: Martin Clark

Publisher: Nick Fordham

Sales Director: Michael Ferridge

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

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

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UAE GRAHAM BROWNTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]

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

USA 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 L2-112, Loft Office 2, Entrance B,PO Box 502207, Dubai Media City, UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261

Production: Srinidhi Chikkars, Nelly Mendes and Rakshith ShivakumarE-mail: [email protected]

Chairman: Derek Fordham

Printed by: Buxton Press

Printed in: February 2018

ISSN: 0954 6782

SUBSCRIPTIONS:

Rates for one year (11 issues):Europe €107, Kenya KSh3400, Nigeria N6600, South Africa R460, United Kingdom £77, US$140

To subscribe: visit www.africanreview.com/subscribeFor any other enquiry email [email protected]

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Groupe Banque Populaire has partnered with UAEExchange to facilitate remittances to Morocco. Thepartnership will enable remitters to send moneyfrom UAE Exchange branch to Groupe BanquePopulaire or third-party bank accounts in Morocco,while providing the beneficiaries with an option forcash pay-out at all Banque Populaire branches.Laïdi El Wardi, retail banking general manager,Groupe Banque Populaire described thepartnership as “strategic” and will add diversity.

Morocco-UAE remittance deal

BRIEFS

Al Baraka Bank Egypt continued its growth acrossall activities in 2017, announcing a total incomeincrease of 51 per cent in 2017 to reach EGP 5.43 bn. Net profits jumped by 42 per cent toreach EGP 725.3mn in 2017 compared to 2016.Total assets of Al Baraka Bank Egypt stood at EGP50.3bn at the end of 2017, growing by 19 per centcompared to the end of 2016. Total financing andinvestments portfolio reached EGP 33.1bn at theend of 2017, up by 23 per cent.

Al Baraka bank profits up

DHL, Novartis, Roche, Siemensand ElKindi Pharmaceutical havetopped the list of the best placesto work in Algeria, according tothe annual workplace survey byglobal research firm, BestCompanies Group USA. The surveyis part of an internationalprogramme which providesemployers in different regionswith the opportunity to learnmore about the engagement andsatisfaction of their employees.

The 2018 research programmehas found that engagedemployees stay with their employerslonger, serve customers moreeffectively and help contribute toward a more profitable company.

The top five companies made the list based on multiple criteria, receiving outstanding scores forbenefits, leadership, satisfaction and opportunities, and personal growth of the employees. A two-stepprocess is involved in determining the list, starting with an evaluation of workplace policies, practices,and demographics. The second step consisted of employee surveys aimed at assessing the experiencesand attitudes of individual employees with respect to their workplace.

“Thanks to the commitment of our employees, Siemens continues to prove its ambition to positionitself as a trusted partner in Algeria, combining innovation and entrepreneurship for the benefit of itscustomers,” said M. Benabdoun, general manager of Siemens Algeria.

M. Melaika, general manager of Novartis Algeria cited “a shared vision, common goals, opencommunication and mutual respect” as the factors for success within the company.

The Best Places To Work Programme certifies and recognises leading workplaces in several countriesincluding leading programmes in Africa, Europe, Middle East and Asia.

Mastercard has highlighted its support forthe Egyptian government’s efforts toaccelerate the advancements within thefinancial industry in Egypt throughinnovations in the payments sector.

Speaking at the Seamless North Africa 2018,held in Cairo in February, Khalid Elgibali,Division President for Middle East and NorthAfrica, Mastercard, emphasised that Egypt isgoing through a phase of rapid growth andtransformation, and digitisation presents atremendous opportunity to drive sustainableand diversified economic development.

In his keynote address to the “SuccessGlobal Fintechs Update” panel, Mr Elgibalinoted that in addition to the potential ofgenerating significant financial returns,fintech companies can also help theeconomy become more inclusive and lesscash-based, which are important objectivesalong the economic development journey.He cited the latest World Bank reports, whichfound that Egypt has the potential to bringmore than 44 million people into the formalfinancial sector.

“Technology-led systems are offeringgreater access, lowering costs, improvingusage, and creating better service deliveryfor consumers. Financial services indeveloping regions will be reimaginedthrough the innovative use of data solutions,a deeper understanding of customer needsand a new collaboration model, which will,in turn, boost inclusive growth. However, itwill require strong channels of co-operationand collaboration with partners from acrossand within industries to bring this tofruition,” he told delegates.

In addition, the panel discussed globalfintech updates and transformational trends,evaluation of fintechs in the wider globalmarkets, challenges facing industry leadersand opportunities that can help acceleratethe adoption of successful fintech solutions.

Logistics, pharmaceutical and industrial companies top Algeria employer list

MASTERCARD URGES BESTFINTECH PRACTICE

Tunisia has been added to the European Union’s blacklist of third countries thought to be at high risk ofmoney-laundering. The list is part of the EU’s toolkit to protect itself against such practices, and Sri Lankaand Trinidad and Tobago were added at the same time as Tunisia. The addition of Tunisia came after intensedebate among Members of the European Parliament (MEPs), with the final vote resulting in 357 votes insupport of the motion to 283 votes against and 26 abstentions. MEPs who tabled the motion against theinclusion of Tunisia said its addition to the list was undeserved and that, as a burgeoning democracy in needof support, the listing fails to take into account steps the North African country has taken to strengthen itsfinancial system against criminal activity. In a statement to parliament, the Commissioner for Justice,Consumers and Gender Equality, Vera Jourová, declined some MEPs’ requests to delist Tunisia immediately.She said the commission would reassess Tunisia’s progress “as early as possible” this year.

EU MONITORING TUNISIA FOR MONEY-LAUNDERING

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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com4

Siemens, which was the consortium leader on the Algiers Metro, is anAlgerian top employer.

A UAE Exchange outlet. Positive news from Al Baraka Bank.

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A report released by consulting firmDeloitte East Africa found that costand time overruns are major factorsin why infrastructure projects areabandoned in Kenya, according toKenyan radio station Capital FM. Thefindings released by Deloitte EastAfrica noted that 48 per cent ofprojects were over budget and 87per cent of projects have a timeoverrun. Jean-Pierre Labuschagne,Deloitte Africa Infrastructure &Capital Projects Leade, revealed thatthe project overruns in Kenya weredue to procurement delays. This heexplained was either upfront orduring the construction period which results in huge cost escalations.Capital FM highlighted that the Deloitte Construction 2017 report revealed that where projects are

contracted irregularly, procurement challenges can be a major factor leading to project delays and costoverruns. “Approximately only 20 per cent of projects (from inception) in Africa reach financial closure andare able to move to execution,” Laubschagne told Capital FM. He explained that governments have a majorrole to play through project management, oversight, use of independent engineers, cost and deliveryassurance, in addition to the use of technology to monitor delivery of projects.Despite the problems faced, the number of projects in Africa rose by 5.9 per cent in 2017 to 303. The

report found that East Africa experienced the highest rise in the number of projects in 2017, defying ageneral downward trend across most African economies. East Africa, which includes Burundi, Comoros,Djibouti, Eritrea, Ethiopia, Kenya, Rwanda, Seychelles, Somalia, Tanzania and Uganda had 71 projects, a 65percent jump. Southern Africa saw a nine per cent growth while North, Central and West Africa declined by48 per cent, 17 per cent and 14 per cent respectively. East Africa projects represented 23.4 per cent of thetotal projects in the continent. Kenya had 23 projects followed by Ethiopia at 20, but projects in Ethiopiahad almost twice that of the value of projects in Kenya. "East Africa continues to stand out; both as agrowth region and as one focused on creating a more conducive environment through infrastructureinvestment - enabling investment and business,” he added.

UK to support solar energy in Uganda

BRIEFS

Rwanda receives funding forsewarage network

Siemens has expressed interest to supportSudan on the field of electrification,automation and digitalisation, aiming tobuild energy infrastructure and skillsdevelopment initiatives in the country.One of the members of the managing

board of Siemens AG, Janina Kugel, togetherwith regional and pan-African executivemanagement held a strategic partnershipdiscussion with the Sudanese Vice PresidentBakri Hassan Salih Khairi.“The focus on infrastructure investments

and partnerships between public andprivate sectors remain a major priority forus to realise the ambitions we have for thecountry. Together with Sudan, we havestrategically identified electrification as acatalyst to stimulate socio-economic growth.Electricity will grow existing industries aswell as create new ones. It also enables theadvancement of social investments intopriorities such as healthcare,” said Kugel.Siemens has signed an operation and

maintenance (O&M) contract with theSudanese Thermal Power GeneratingCompany (STPGC) which covers aspects andactivities necessary for the running of theGarri Power Station in the North of theKhartoum and the Port Sudan on thecountry's Red Sea coast.Sabine Dall’Omo, chief executive of

Siemens Southern and Eastern Africa, saidthat the O&M agreement is set to minimisethe operational risks and maximise plantavailability. As the original manufacturer ofthe turbines, we are best positioned topartner with STPGC. This agreement is alsotangible evidence of our mutual long termrelationship with the country." Dall’Omoadded, “On a full time basis, the O&Mcontract offers the full benefits thatdigitalisation brings to the energy sector,such as remote monitoring andpreventative maintenance.”

Deloitte report: 13% of infrastructureprojects in Kenya completed on time

SIEMENS SIGNS SUDANPOWER PLANT DEAL

Helium gas is expected to be an important factor in driving industrialisation in Tanzania, according to mineralexploration company, Helium One. The firm recently organised a one-day workshop at UDSM to build localcapacity and awareness on the origin, exploration and development of helium in Tanzania. It said it will sponsortwo UDSM students for MSc Programme at Oxford University. The workshop’s main objective was to bringtogether. Helium One’s chief executive officer, Thomas Abraham-James said, “Helium One believes there is anopportunity through helium exploration and development to develop world-class technical skills and scientificexpertise locally in Tanzania. We continue to build on our partnership with UDSM through knowledge-sharing,training for students and Ministry of Minerals’ staff, and development of a scholarship programme.”

DRIVING INDUSTRIALISATION IN TANZANIA

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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com6

The solar energy fund will supportuniversal energy access in Uganda.

The $85.1mn fund will supportconstruction of the country's firstpublic sewerage network.

Project overruns in Kenya were due to procurement delays.

The Deparment for International Development (DFID)and the UN Capital Development Fund have joined forcesto enhance Uganda’s solar energy industry. The dealaims to support universal energy access across thecountry together with the Uganda Solar EnergyAssociation. Head of DFID Uganda, Jennie Barugh said:“Combined with other initiatives of the ‘On and Off-GridSmall Scale Renewable Energy in Uganda’ project, thiswork will contribute to improved clean energy access forover 200,000 households and businesses.”

The European Investment Bank has announced it hasinvested $85.1mn of new infrastrucutre and privatesector investment in Rwanda. This includes the firstpublic sewage system in the country. “The EuropeanInvestment Bank is a key international financingpartner for our country and I welcome new EIBsupport for public and private investment acrossRwanda to be confirmed during their visit to Kigali,said Claver Gatete, Rwandan minister of finance andEconomic Planning.

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The Coega Development Corporation (CDC) hasbeen given the go ahead for a land-basedAquaculture Development Zone (ADZ) anddesalination plant, following an EnvironmentalImpact Assessment (EIA). “The approval of theEIA is a leap towards fulfilling the Coega SpecialEconomic Zone’s (SEZ) vision,” said Dr KeithDu Plessis.

Coega nets aquaculture zone approval

BRIEFS

Prolonged dry spells, erratic rainfall, hightemperatures and the presence of the voracious fall armyworm have dampenedsouthern Africa’s current agricultural season’scereal production, the Food & Agricultural Organisation (FAO) has warned.“Crop production is likely to be negativelyaffected,” it said.

Drought undermining crop production

Isuzu Motors South Africa (IMSA) hasannounced that it will be entering the SportsUtility Vehicle (SUV) segment with theintroduction of the popular Isuzu mu-X intothe sub-Saharan Africa market in the secondhalf of this year.

It follows the arrival of the Japanese carmaker in Port Elizabeth in February, aftertaking over General Motors SA’s (GMSA)facilities in South Africa, as well as more than1,000 of its former employees.

It is Isuzu’s first commercial vehiclemanufacturing operation outside of Japan inwhich it holds a 100 per cent stake. SouthAfrica’s Trade Minister Rob Davies joined Japan’s ambassador to the country Shigeyuki Hiroki for theofficial launch party.

The mu-X will be a new entry in the SUV segment for Isuzu in Africa, since the introduction of theTrooper and Frontier in 1992 and 1998, according to Dominic Rimmer, executive technical services atthe car maker. “This great product − which has been favourable with customers around the world −will extend the Isuzu product range offering customers an option to choose between the rugged andcapable Isuzu pick-up and a sophisticated Isuzu SUV for both work and leisure, ensuring they arecatered for in the Isuzu family.”

The robust Isuzu mu-X SUV has a long history of performance behind it following its firstintroduction in the Thailand market five years ago.

As well as Thailand, it is sold in other countries including Australia and Philippines, where it is themarket leader. "We are excited about the addition of the mu-X into the Isuzu portfolio, offeringcustomers a SUV originating from a strong brand that is trusted and known for reliability by SouthAfricans,” said Rimmer.

The mu-X is powered by Isuzu's 3-litre engine, supported by a 5-link rear suspension and packedwith active safety features for driving off road. The model line-up, specification and pricing is still to beannounced. Masanori Katayama, the president of Isuzu Motors of Japan, said the high profile arrival inSouth Africa reflected the group’s firm belief in the market.

Small and medium-sized enterprises (SME) inSouth Africa are taking inspiration from theupbeat tone of President Cyril Ramaphosa’sfirst state of the nation address, according toPieter Bensch, executive vice president, Africa& Middle East at technology giant Sage.

Ramaphosa was appointed South Africa’spresident on February 15, following thedeparture of his predecessor Jacob Zuma.

The early signs for SMEs are promising,according to industry commentators. Benschhighlighted the new president’s positiveoutlook on how smaller businesses can playa major role in spurring economic growthand addressing the challenge ofunemployment.

“We are pleased to hear the new presidentof South Africa acknowledge that the growthof our economy will be sustained by smallbusinesses,” said Bensch. “It is heartening tohear that he is committed to building a smallbusiness ecosystem that assists, nourishesand promotes entrepreneurs.”

He added: “Entrepreneurship doesn’thappen in a vacuum – it is the result ofcollaboration between big business,government, business builders, universitiesand other stakeholders to build the skills,infrastructure and support systemsentrepreneurs need to succeed.”

Bensch highlighted the CEO SmallBusiness Fund, worth R1.5bn, as an exampleof how government and big business canwork together to nurture entrepreneurship.“I was excited to hear that the government isfinalising a small business and innovationfund targeted at start-ups and that it also hasplans to reduce the regulatory barriers forsmall businesses,” added Bensch. “Thesesorts of interventions could help us todramatically improve the success andsurvival rate of South Africa’s small and start-up businesses.”

Isuzu mu-X destined for sub-Saharan Africa PRESIDENT DELIVERSPOSITIVE NEWS FOR SMES

The volume of cargo handled by the Port of Maputo increased sharply last year, despite a fall inthe number of vessels calling. The port said that volumes had grown 22 per cent in 2017, with 18.2million tonnes of cargo handled last year against 14.9 million tonnes in 2016.

It comes despite a dip in the number of ships: in 2016 the port received 955 vessel calls and in2017 it received 896, which equates to 59 less ships but 3.3 million tonnes more cargo.

The result was positively affected by the dredging of the access channel to the port, completedin early 2017, according to the port’s chief executive Osório Lucas.

Before dredging, the maximum sailing draft of vessels in Maputo and Matola was, on average,12.20 metres and the parcel size varied between 50,000 and 55,000 tonnes. “The dredging resultedin an increase of 40 per cent to the average parcel size for Maputo Main Port,” said Lucas.

MOZAMBIQUE PORT TRAFFIC ON THE UP

IMSA will be entering the Sports Utility Vehicle market.

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CDC receives EIA approval for anAquaculture Development Zone.

Drought affects agricultural productionin southern Africa.

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Yemi Osinbajo, vice-president of Nigeria, hasemphasised the country as an attractive business huband urged the multinational companies to invest inNigeria for the growth of its business environmentOsinbajo spoke this at the commissioning of the NewNestlé Milo Ready-To-Drink Factory in Agbara, OgunState, Nigeria, on 8 February.Nigeria aims to implement the Economic Recovery andGrowth Plan to keep the economy on track.

Yemi Osinbajo urges multinationals to set upfactories in Nigeria

BRIEFS

Akere Muna, chairman of the International Anti-Corruption Conference Council, spent a week in February meeting with the NOW movement’sleaders across Cameroon.NOW is a citizen movement rallying for change thatbrings together Cameroonians from all walks of life. Muna held meetings with major political actors toadvance his political position. The tour reached itshigh point in Maroua.

Muna consolidates position in Cameroon

GE Power and Marinus Energy have jointlyannounced a 25MW pilot project to captureIsopentane gas and use it as a fuel source forgenerating electricity in sub-Saharan Africa.

As developing countries embrace innovation tomeet to energy challenges quickly, the AtuaboWaste to Power Independent Power Project will bethe first TM2500 power plant in sub-Saharan Africato use Isopentane gas as a fuel source and will runon GE’s TM2500 gas turbines.

In the first phase, Atuabo will convert theIsopentane fuel into up to 25MW of power,generating enough electricity to supply power formore than 100,000 Ghanaian households. Asadditional gas is brought onshore, the plant isexpected to add on additional gas generating units up to a capacity of 100MW.

Additional Isopentane fuel will eventually be stripped off an offshore gas supply and processed atAtuabo by the Ghana National Gas Company. The gas turbine will start on lean gas and transfer to theIsopentane mix over time, and the power plant is intended to operate at base load throughout its life.

“The TM2500 unit will provide speed to deployment and flexibility to support the immediate needs ofour customer, Marinus Energy, and then seamlessly transition to deliver capacity over the long term as theyexpand their operations,” said Leslie Nelson, CEO of GE’s gas power systems in sub-Saharan Africa.

“The Atuabo project will add yet another TM2500 gas turbine to the existing fleet of ten units in thecountry earlier deployed in 2016.”

With more than 200 units deployed and five million operating hours of experience, GE’s TM2500 aims tobridge the power gap for short- and long-term energy planning, stabilise the grid or reach and powerremote locations.

“The TM2500 mobile power plant can be relocated to other power plants during operation andmaintenance outages or to remote areas. The TM2500 can also achieve full power approximatelywithin 10 minutes making it ideal for providing a base-load bridge to permanent power installations orgenerating backup power for factories and industries,” the company explained.

Mitsuhiro Furusawa, deputy managingdirector of the International Monetary Fund(IMF), thanked the Mauritania Prime MinisterYahya Ould Hademine and Minister ofEconomy and Finance El Moktar Ould Djayfor their warm welcome during a -day visit.

He said, “I would also like to thank theother authorities, civil society and privatesector representatives for very constructivemeetings. We discussed recent economicdevelopments in Mauritania, which havebeen positive, and the favorableinternational environment. We agreed thatthe time is right given the global recoveryand sustained metal price to undertakebroad-based structural reforms to accelerateinclusive growth, transform the Mauritanianeconomy, and create the jobs needed todurably lift living standards and generate amore prosperous future.

The visit followed the approval by IMF todeliver a three-year arrangement under theExtended Credit Facility (ECF) for US$163.9million on December 6, 2017.

Furusawa said, “The Extended CreditFacility (ECF) approved by the IMF lastDecember, for US$163.9mn over three years,will support the inclusive growth strategyand encourage continued reform efforts.

“We discussed the authorities’ new growthstrategy based on the three pillars ofinclusive economic growth, human capitaldevelopment, and improving governance.

“I emphasised the need to develop aprudent, disciplined investment strategy toincrease infrastructure and create jobs whilepreserving public debt sustainability. Giventhe significant financing needs and alreadyhigh debt, non-concessional loans must beavoided and debt management improved.

“I underscored the importance ofstrengthening the fight against corruptionand improving the business environment topromote private sector development.”

GE and Marinus Energy to build waste gas-to-power plant in Ghana

“TIME IS RIGHT TOTRANSFORM ECONOMY”

The Special Representative of the Secretary-General and Head of the United Nations Office for West Africaand the Sahel (UNOWAS), Mohamed Ibn Chambas, conducted a three-day visit to The Gambia in February.The objective of the visit was to renew the UN’s engagement to support the authorities of The Gambia in

their efforts towards the implementation of new and vital reforms.During his visit, Ibn Chambas met with members of the government, the United Nations Country Team,

the diplomatic corps, development partners, the Independent Electoral Commission, representatives of theInter Party Committee and civil society organizations. He also met with His Excellency President Barrow andVice-President Fatoumata Jallow-Tambanjang. Ibn Chambas commended the Gambian authorities for thelaunch of the National Development Plan (NDP) on February 6 and its implementation.

IBN CHAMBAS CONCLUDES VISIT TO THE GAMBIA

GE’s TM2500 mobile power plant will generateenough electricity for more than 100,000 Ghanaianhouseholds.

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Yemi Osinbajo at the 48th WorldEconomic Forum annual meetingfor 2018.

Akere Muna meets Camerooniansfrom all walks of life.

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Upcoming Events Calendar 2018

EVENTS | 2018

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com12

MARCH 7 - 9

WEST AFRICA POWER SUMMITDakar, Senegalwww.wafpower.com

13 - 16

BAUMA CONEXPO AFRICAJohannesburg, South Africawww.bcafrica.com

19 - 21

SOMALIA OIL, GAS & MININGNairobi, Kenyawww.somaliasummit.com

20 - 21

SECUREX WEST AFRICA 2018Lagos, Nigeriawww.securexwestafrica.com

20 - 21

AFRICA ISLAMIC FINANCE FORUMLagos, Nigeriawww.africa-if.com

27 - 28

POWER & ELECTRICITY WORLDAFRICAJohannesburg, South Africawww.terrapinn.com

27 - 29AGROFOOD NIGERIA 2018Lagos, Nigeriawww.agrofood-nigeria.com

28 - 29EAST AFRICA OIL & GAS SUMMITNairobi, Kenyawww.eastafricaogs.com

APRIL23 - 28INTERMATParis, Francehttps://paris-en.intermatconstruction.com

25 - 26MOZAMBIQUE MINING, OIL & GAS(MMEC 2018)Maputo, Mozambiquewww.ametrade.org/mozmec

MAY15 - 17

CONMIN WEST AFRICAAbuja, Nigeriawww.conminwestafrica.com

15 - 17

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

16 - 17

AFRICAN CONSTRUCTION EXPOJohannesburg, South Africawww.totallyconcrete.co.za

29 - 31

POWER & ENERGY AFRICA 2018Nairobi. Kenyawww.expogr.com

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QUOTES

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com14

“Facility of direct flights fromDubai has encouraged the

residents and expats to opt forZanzibar as a preferred holidaydestination. Zanzibar has seen arise in tourist numbers steadilyover the past seven years and hasa projected increase of 26 per centfor 2018.”

SALEH SAIDManaging Director of Pennyroyal Ltd.

“I’m happy to join the TrendMicro ecosystem that is

vibrant, and focused in protectingits customers, while helping todrive innovation, forgetransformational alliances, anddevelop regional talent. Ourchannel community is thebackbone to our continuedsuccess, and finding new ways tofurther strengthen our mutualbusinesses is also an emphasis for2018, and beyond.”DR BIN ALIVice President for Trend Micro MiddleEast and Africa region. Trend Micro is aglobal leader in cybersecurity solutions.

“We are honoured to receivethis facility from the

European Investment Bank, whichaffirms our position as adevelopment partner of choice forthe SME and Corporate sector

aimed at facilitating the country’seconomic growth.”

KIHARA MAINACEO I&M Bank Kenya on the EIBextending the US$40mn financingfacility.

“I welcome the African Union’shistoric adoption of a

Protocol that deals specifically withthe rights of people withdisabilities. The hard work andleadership of people withdisabilities across Africa had madethe milestone possible after nearly20 years of preparation. Thispositive development should leadto considerable improvements inthe lives of African people withdisabilities. The Protocol addressessome of the urgent issues thathave the most disproportionateimpact on people with disabilities,such as poverty, systemicdiscrimination and harmfulpractices.”

CATALINA DEVANDASSpecial rapporteur on the rights ofpersons with disabilities on the newlyadopted Protocol to the African Charteron Human and People’s Rights.

“Cape Verde achieved animpressive fiscal

consolidation in recent years but

reducing public debt has provendifficult, owing in part to thedepreciation of the escudo vis-à-vis the US dollar but also reflectingthe need to support loss-makingstate-owned enterprises (SOEs).”

MAX ALIERLed the International Monetary Fund(IMF) to Praia from January 15-26.

“The Africa Business andInvestment Forum

demonstrated a real commitmentby our African leaders that they arefocussed on paving the way forprivate investors in the US and therest of the internationalcommunity, to invest in Africa.”

VERA SONGWEExecutive Secretary of the UN EconomicCommission on Africa.

“2018 is going to be the yearthat our vision starts to

become a reality. Our site in LagosNigeria is being constructed andwill open for business in Augustthis year. Our other seven sites areexisting hotels which we are in theprocess of purchasing and theywill then go through a completerenovation to bring them up to theUgwunwa Hotel five star standard.”

QUEEN CATHERINE AJIKEThe Nigerian royal from Ohafia unveiledplans for an international hotel group.

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BEAMING START TO THE YEAR

A pioneering platform that aims to revolutioniseaccess to energy for millions in sub-SaharanAfrica and Asia was launched last month. TheBEAM platform – the first of its kind – is set toinitially deploy USD$50mn in equity fordistributed energy service companies (DESCOs)and will unlock further debt capital. It is thebrainchild of Bamboo Capital Partners, the

pioneering private equity firm delivering positivesocial and financial value, and BBOXX, a next-generation utility.

FDI FLOWS WERE GROWING INTHE CONTINENT

Africa is working tirelessly to get policy andlegislative conditions right to ease the businessenvironment and attract more foreign directinvestment, said Ethiopian Prime MinisterHailemariam Desalegn. Speaking at the AfricaBusiness and Investment Forum that wasorganised by the Economic Commission forAfrica (ECA) and the Corporate Council on Africa(CCA), Desalegn said as a result, foreign directinvestment flows to the continent were growingwith a number of African economies nowshowing resilience to various internal andexternal shocks.“Africa has been on theinvestment radar of many multinationals fordecades now as witnessed by increasedinvestment in infrastructure, agriculture,mining, manufacturing and tourism. Still Africa’smarket and resource potential remainsuntapped,” he said, adding the businessenvironment in Ethiopia had improvedremarkably in recent years.

AFRICAN RISK CAPACITY ANDUNITED NATIONS PARTNER TOINCREASE INSURANCE COVERAGE

The African Risk Capacity (ARC), an agency of theAfrican Union, and the United Nations EconomicCommission for Africa (ECA), has announced anew partnership which will see the twoorganisations work together to increaseinsurance coverage against climate risks forAfrican states.The multilateral deal wasannounced at the African Union’s AnnualSummit in Addis Ababa, and commits ARC andECA to build the capacity of their 33 commonmember states by embedding risk managementinvestments into government planning throughpolicy development.

Africa’s resource potential remains untouched, saysEthiopian Prime Minister Hailemariam Desalegn.

BBOXX provides affordable off-grid energy solutions.

NEWS | BULLETIN

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com16

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BOXX

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n/Flickr

The care and control of small parts can have amajor impact on company success.Every major mining operation in Africa relies

on replacement and maintenance componentsbeing available on site, in good condition, andas soon as they are needed.The effect of production hold-ups, broken

down trucks, unusable excavators, stationaryloaders and other lengthy delays can make a significant difference to achievingperformance targets.The key to satisfying this requirement is to

have a suitably laid out and equipped storagefacility containing all the essential replacementcomponents at the point of use.Stodec Trading Ltd has been providing design

and installations for effective storage throughout the world, and particularlyfor the oil, gas and mining industries in Africafor many years.Recent Stodec installations for mining

companies have included tailor madewarehouse facilities for Kinross Tasiast mine inMauritania, Dundee Precious Metals, Tsumeb inNamibia, Kinross Chirano in Ghana, PerseusMining in Ghana and Côte d’Ivoire, Newcrest inCôte d’Ivoire, Golden Star in Ghana, Toro Gold inSenegal and many other facilities in Ethiopia,Algeria, Kenya, Uganda, Tanzania and Libya.

Stodec Trading Ltd are able to supply the fullDexion range of products to achieve maximumcapacity and operational efficiency.For palletised goods, this can be standard

pallet racking, push-back, drive-in, double deep,or shuttle storage for small parts, as well as toolsand components for steel shelving, long span

racks, or mobile units with compartments andvarious-sized bins.Mezzanine floors supplied in readiness to

install kit form from the UK are often used toprovide one, two or three extra storage levels toextend or build new buildings. For more information visit www.stodec.co.uk

Looking after the smallest part prevents the biggest hold-ups

Stodec has installed tailor made warehouse facilities for various mining companies in Africa.

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Diamond Bank has become the first Nigerian company to join the World Economic Forum as an adviser. CEO UzomaDozie talks to African Review about how he will use the prestigious platform to campaign for financial inclusion.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com18

Diamond Bank has become thefastest growing retail bank inNigeria and its success is

down to its partnerships, says CEOUzoma Dozie. “We don’t see ourselves as one

bank,” he said. “It’s that notion ofcollaboration with partners such asMTN and Women’s World Bankingthat gives us expertise inunderstanding a customer’s journeyand what services to provide themwith, as well as to encourageinclusiveness.”This approach seems to be

working. Since its partnership withMTN, from 2014-2017, DiamondBank has doubled the number of itscustomers through its DiamondY’ello banking account, with morethan 8.6 million users on its books.The account has become a marketleader in the Nigerian financialinclusion space. “It is a full service banking

account on a MTN sim, which allowsour customers to open up anaccount immediately and use it as aplatform to fulfil their day-to-dayneeds,” Dozie said.“Our strategy is to invest in mobiles.To come up with a mobile bankingapplication, which goes beyondbanking and not just to providetransfer services. It is enablingcustomers to do everything that theycould do in a branch via a mobile.We market that aggressively in ourbanking network, making surecustomers adopt mobile bankingservices that align with theirlifestyle. We have seen an explosionin accounts opening and havecreated 2,000 new jobs.” In January, Diamond Bank

became a forum member adviser tothe World Economic Forum to pushthe financial inclusion agenda,particularly with women, and bringthem into the formal economy.

In Nigeria, out of 180 millionpeople, nearly half do not have abank account.“It’s a great platform to

communicate to people what we aredoing and also to bring more peopleback into that inclusion space sothat the cost of increasing thenumber of people who are bankedis reduced. These kinds of thingspromote trust. When you have mostof the banking industry focusing oninclusiveness and gender parity, itcreates momentum, making sure weuse technology for the greater goodand that people don’t fall back into

poverty. It is exciting to be part ofthat mission.”He described the appointment “as

testament to the bank’s status asone of Nigeria’s leading innovators”.“Five years ago, we looked at

where the economy was and whereit was going and what our futurewas going to be. We realised that itwasn’t going to be in the corporateor public sector. It had to be smallbusinesses with 18 millionunbanked customers. You could usetechnology to acquire newcustomers in a cost-effectivemanner. So, we decided to

restructure our organisation andtake advantage of our network,people and technology.Dozie himself regularly holds

Tech Turks shows where he talkswith entrepreneurs that usetechnology to provide services tosmall to medium-sized businesses inthe sphere of health, education,food and agriculture.“Fintechs are not what they used

to be 10 years ago where solutionswere provided by internationalorganisations. Now there are home-bred payment solutions, provided bypeople under the age of 35. Thereare lots of applications oftechnology in different types ofbusinesses to reduce costs andaccess markets that they wouldnever have reached with traditionalnon-technological infrastructure.“I interviewed a man recently

who came up with a dry cleaningplatform, allowing businesses toaccess customers which would havebeen difficult before without an appbased platform.”When asked whether Dozie sees

Nigeria as a leader for other Africancountries to follow, he said, “That isthe frustration. We are focusing onthe challenges that we have inNigeria. We don’t talk enough aboutaccessing technology to changebusinesses. We need tocommunicate better about thesolutions we have in Nigeria; whatwe have achieved and how we canscale it. In April, we will be holdinga Tech Fest event where all ourglobal partners such as IBM andMicrosoft will be coming togetheralongside our fintech and small businesses to createawareness about the solutionsavailable and to encourage morebusinesses to come on board.” �

www.diamondbank.com

Making banking easier for people

PROFILE | DIAMOND BANK

Diamond Y’ello allows customers to use it asa platform to fulfil their day-to-day needs ”UZOMA DOZIE, CEO DIAMOND BANK

Uzoma Dozie, CEO of Diamond Bank, regularlyholds talks with entrepreneurs in Nigeria.

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Barry Mansfield examines the latest developmentsin mobile money systems across Africa.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com20

Mobile money has proven to be a highlycompelling alternative to cash for Africanconsumers. In fact, Africa has emerged as

an international leader in this area, with morethan 100 million people operating mobile moneyaccounts by 2016. A 2017 Bloomberg reportrevealed that Kenyans alone had moved a recordUS$38bn via mobile money platforms over thecourse of the previous year. The surge intransactions has even forced Telkom Kenya towind down its main mobile money service infavour of more sophisticated, customer-friendlytechnology.Meanwhile, MTN has revealed a plan to

increase its African mobile money userbase fromthe current 21 million to 60 million over the nextthree or four years. Rob Shutter, the group’s chiefexecutive officer, unveiled its blueprint forgrowth at January’s Deloitte Africa in 2018Outlook conference in South Africa. He said thefirm is encouraged by the uptake of its mobilemoney offering in territories outside the RSA.Shutter describes mobile money as a “core digitalservice” aimed at leveraging the strength of thebrand and distribution.That is mostly down to MTN’s development of a

massive informal distribution network for prepaidairtime to bring customers into a transactionalbanking system. Shutter pointed out that MTN hasdeployed mobile money across 14 markets and “ifwe look at our 30-day active users, which is themost important metric, we are growing by half amillion customers a month. I think that’s prettycool and today we are sitting at 21 millionsubscribers. We are a new age transactionalbanking provider and it’s a very big imperative forus, and the key thing we want to do is to scale it rapidly.” Last December saw an announcement from

Huawei and Xpress Money, the money transferbrand, that the two companies would bepartnering to push mobile money services toAfrica’s remaining unbanked. The app’s mainpurpose will be to deliver basic banking

transactions on smartphones and basic handsets,enabling consumers to make online and offlinepayments, pay for essential services such as utilitiesand school fees, and manage financial services,such as loan applications, insurance and banking. Telkom Kenya says an approval from the

Central Bank of Kenya (CBK) is the only hurdle leftin its bid to launch its newly-designed mobilemoney facility. CEO Aldo Mareuse said thecompany finished trialling its service lastDecember and is now awaiting the CBK nodbefore launching it. Before it wasdecommissioned, the Orange Money service hadthe lowest customer numbers among the threemobile operators, but the plan is to eventuallyjoin a scheme where the main telecom firms willpilot interoperability. Zimbabwe is close to a cashless economy now.

The banking sector plans to import another 50,000point-of-sale machines by April, and NetOne haslaunched a major campaign to break Econet’s nearmonopoly on mobile money. Other improvementsin the pipeline include changes to transactioncosts, taxes and finalising the seamless integrationof all digital money systems. Solar lamps, whichalso have the slot for a charging cord, are now alsoalmost ubiquitous – meaning that rechargingphone batteries is not a major problem.In 2017, three of Zambia’s major banks launched

mobile banking applications to allow their clients24 hour access to cashless money transfer services.In total, 12 out of 19 commercial banks have fullyfunctional mobile banking applications. Zamteljoined the mobile money bandwagon last year with

its Zamtel Kwacha service. Next in line was ZambiaPostal Services Corporation (Zampost) and itspayment system, Swift cash, which targeted clientsin unbanked remote parts of the country andendeavoured to help reduce the risk of shiftinglarge sums of money.However, the real game changer in Zambia

arrived in 2009 with a tiny startup called Zoona,which targeted adults with limited or no access toformal financial services. The founders created asimple but highly efficient business model whichonly requires a customer’s national identificationcard, mobile number and a security pin whichthey personally send to the beneficiary. Within afew minutes, the transaction is complete, and thebeneficiary can collect their money from anyZoona booth. The sender pays a smallcommission ranging from K5 to K250 or more. A ZICTA survey reveals a spectacular increase in

the country’s mobile phone subscriber base from2.6 million in 2007 to 10.9 million in 2015 –mostly due to increased investment in the sub-sector by mobile service providers. These are allpotential clients with mobile Internet access.Zoona addresses the stumbling block that not allof them are literate enough to easily handle asophisticated mobile banking app, or to spendtime filling forms and attaching the mandatorycompliance documents. The aim is to helpcustomers who urgently need to send money to aparent, child, friend, employee or supplier.By the end of 2016, around one million

customers were using Zoona every 60 days – withmore than 1,600 Zoona outlets spread acrossZambia and Malawi. Zoona reports that more thanUS$2 bn worth of mobile money transactions havebeen processed so far. This intuitive service isnotable by its huge social impact; physical bankbranches are less packed, and Zoona’s clientele iswide-ranging, from upper, middle class urbancitizens to the part-time employed, and lowincome earners. Last May, the company slashedcharges by up to 85 per cent, which helped toincrease uptake even further. �

Mobile money uptakeis far and wide

TECHNOLOGY | REPORT

We are a new agetransactional banking provider ”ROB SHUTTER, CEO OF MTN

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www.africanreview.com 21MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

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

WEB SELECTION

ALSF LAUNCHESWORKSHOPS FOR GOVTOFFICIALS

The African Legal Support Facility(ALSF) has launched a suite ofcapacity-building workshops whichaim to strengthen the capacity ofNigerian government officials inpublic-private partnerships,particularly as they relate toinfrastructure development.Organised on the basis of a cost-sharing grant provided by the

ALSF to the government of Nigeria, thefirst training event was designed todemystify the process of identifyingand structuring public-privatepartnership infrastructure projects. It was co-hosted with the NigerianFederal Ministry of Finance.More than 51 governmentrepresentatives participated in theworkshop.

AFRICAN UTILITY WEEK TOFOCUS ON MEETING WATERDEMANDAfrican Utility Week is going to be heldin Cape Town from 15-17 Mayfocusing on partnerships, financialmodels and latest technologicaladvances that are making majorimpact in Africa's water demand.

The 18th annual conference isexpected to attract more than 7000decision makers from about 80countries to discuss the challenges,solutions and successes in the power,energy and water sectors on thecontinent. “We want utilities to startthinking out of the box on watersolutions, capabilities and solutions,”said Gerardt P Viljoen, managingdirector of Sensus SA.

THE BIG 5 EXTENDS REACHINTO SOUTH AFRICA

The Big 5 has extended its reach intoSouth Africa with the acquisition offour of the country's leadingconstruction exhibitions.The exhibitions to be acquired includeAfrican Construction Expo and TotallyConcrete Expo: 16-17 May 2018, CapeConstruction Expo: 12-13 September2018 and KZN Construction Expo: 20-21 February 2019.

MuhammaduBuhari, Presidentof Nigeria.

African Utility Week will attract more than7,000 decision makers.

More than 2,500 companies exhibit theirconstruction products and solutions.

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Economist Moin Siddiqi examines the best strategies and challenges private equityinvestors have to navigate to achieve good returns in Africa.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com22

Private equity (PE) represents a source ofworking capital, complementing moretraditional bank debt and project finance.

PE investors offer more than just funds. Byinjecting risk-capital, they become partners in afirm’s growth. It helps unlisted dynamiccompanies to expand, create jobs and ultimatelyfacilitate growth in their economies. Therefore,PE is a perfect fit for developing Africa.PE business can be divided into distinct regions:

South Africa (the most developed market), NorthAfrica, centred around Egypt, Morocco, andTunisia; the west African market pivots aroundNigeria and Ghana, while the east African marketis led by Kenya, but also includes Ethiopia andTanzania. A Francophone market is steadilydeveloping in Cameroon, Côte d'Ivoire andSenegal. Regional or country-specific PE fundshave emerged as a growing asset class driven byeconomic liberalisation, demographic dynamicsand urbanisation coupled with increasingtechnology-driven productivity, especially in theinformation and communication technologies(ICT) and banking sectors.In 2016, a survey of Limited Partners by

Emerging Market Private Equity Association(EMPEA) ranked sub-Saharan Africa (SSA) as thefourth most attractive emerging market behindIndia, Southeast Asia, and South America(excluding Brazil). The African Private Equity andVenture Capital Association (AVCA) reported thatPE funds invested US$21.6bn in 833 deals during2010-15 – targeting mostly fast moving consumergoods (FMCG), banking/finance, industrial andtelecoms sectors. The total value of African-PEfundraising between 2010 and first-half 2017 wasUS$20.5bn. West and South Africa received thelargest share of PE deals. East Africa is alsogaining ground; it attracted a third of the totaldeals during January-end June 2017. Bothfundraising and investment totals for SSA fell,year-on-year, in 2017, decreasing 25 per cent and40 per cent, respectively, according to EMPEA –impacted by regional economic slowdown. Kenyareplaced Nigeria and South Africa as the numberone destination for investment, receiving 21deals. The most active sectors by volume wereconsumer staples and financials, while telecomsand materials ranked largest sectors by valueduring the first half of 2017.

PE majorsThe arrival of global funds shows investor’sappetite for pan-African companies, seeking bothscale and diversification of country-risk. PE funds under management have exceededUS$30bn, according to Boston Consulting Group(BCG). Among some prominent groups are:• London-based Helios Investment Partners,which operates a diversified portfolio in 25countries worth US$3bn. It also manages theUS$110mn Modern Africa Fund on behalf offoreign entities, including US Government’sOverseas Private Investment Corporation. Thisyear, Helios supported by GE Ventures has ledthe largest venture capital raising (US55mn) toprovide off-grid power in West Africa.

• Carlyle Sub-Sahran African Fund raisedUS$698mn for strategic minority investments,of whichtwo-thirds were invested across nine deals.Operating from offices in Johannesburg andLagos, Carlyle targets FMCG, financials, ITC,agribusinesses and energy deals in SouthAfrica, Nigeria, Kenya, Tanzania, Ghana,Mozambique, Botswana, Zambia and Uganda.It recently invested US$100mn in CMCNetworks, a pan-African network connectivityprovider and completed leveraged buyout (LBO)

of Royal Dutch Shell onshore assets in Gabon.• Helios Towers Africa – supported by GeorgeSoros Fund Management – is a private-heldfirm operating in the wireless communicationsindustry. In January 2015, it raised the largestever equity fund (US$1bn) to buy regionaltelecoms providers. The UK-based company isengaged in buying telecommunication towersheld by single operators and leasing them backto the seller and multiple other operatorssimultaneously. Its main focus is Ghana, Congo(DRC), Tanzania and Nigeria.

• Black Rhino (owned by US Blackstone Group)focuses on the development and acquisitionsof infrastructure projects across Africa. It hasinvested more than US$2bn mostly in Nigeria,Ethiopia, Mozambique and Togo. DangoteIndustries and Black Rhino have agreed tojointly invest US$5bn over the medium-termacross SSA with a particular emphasis onpower, transmission and pipeline projects.

• Emerging Capital Partners (ECP) is a Pan-AfricanPE-firm with a portfolio of 60-plus investments(worth US$2.7bn) across 40 countries and hasrealised nearly 40 full exits. It specialises inseed, start-up, venture, growth capital,development, bridge financings, buyout andrecapitalisation in mid-cap markets. The firm

The seeds of success in Africa

FINANCE | PRIVATE EQUITY

28.6%South Africa

18.7%*

Others

15.7%Nigeria

9.2%Kenya

6.2%Egypt

6.0%Ghana

3.4%Tunisia

3.2%Congo DRC

2.6%Zambia

3.2%Morocco

3.2%Côte d'Ivoire

*Include mainly Ethiopia, Tanzania, Uganda and Mauritius.Source: Emerging Markets Private Equity Association (EMPEA).

Top 10 African countries by deal volume (per cent) - 2012-2016

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also makes mezzanine investments(subordinated debt).

• Actis Capital (UK), founded in 2004, hasinvested over US$5.5bn in 70 Africancompanies, of which 50 have been exited. Itsthird Africa Real Estate Fund-3 (2015) stillremains SSA’s biggest fundraising that targetsprime retail, office and industrialdevelopments in eight countries (excludingSouth Africa).

• The Dubai-based Abraaj Group with reportedinvestment of US$3.2bn in more than 80 mid-cap companies over the last two decades.

Best strategies PE flows raise business standards and create apool for talent as more investment banks andinstitutional investors establish a local presence.Investors usually have a long-term perspectiveaimed at ‘value-creation’ by driving operationaladvances, providing technical know-how andnetworks. Fund managers include Africa as part ofa risk-diversification strategy. To succeed, PE managers require localinsight and strong-sector knowledge.“The key to success in the African market is

execution. Investing at the right price isimportant, but what also matters is having theright management team on the ground.Discipline and following a strategy is vital. Gettingthe exit right, including the timing, is alsoessential,” said Runa Alam, chief executive DPI. To generate higher returns, funds should

pursue more flexible investment strategies andnew types of corporate targets, advised BCG in its2016 report ‘Why Africa Remains Ripe for PrivateEquity’. Most funds adopt a similar type of dealstructure – investing only in minority stakes witha view to better managing their risks byleveraging strong local partners. Furthermore,they overwhelmingly target businesses with anannual turnover of US$100mn plus and proventrack records. BCG recommends PE investors toconsider other approaches such as majority stakesand strategic partnerships as well as investing innew vibrant smaller companies.Building local capabilities that add value to

companies can over time generate healthyprofits. According to AVCA, most PE managersreported returns of 2.5 to three times on theirinvestments in Africa. This is comparable toreturns prevailing in Asian markets but exceedsthe average 1.9 in Europe and US. However, withincreasing volumes chasing limitedopportunities, entry values for larger attractiveassets have increased in recent years. “As pricesfor stakes in large African companies rise, it willbecome more difficult for PE funds to deliverhigh returns,” noted BCG.

Business strategies of African-focused PE fundsare distinct from other parts of the world. Mosthold investments for longer than in developedmarkets and using less debt, while some invest in small-medium sized enterprises to nurture themto a size viable for large trade buyers.

Operational challengesOverall, there are obstacles to privateinvestments in Africa: political, currency,commodity prices, capital assess and execution

risks. According to AVCA, 60 per cent of LimitedPartners cite currency risk as the biggestchallenge when investing in African PE. Complex and fragmented regulation

constitutes as a barrier for businesses looking foran exit by way of a public offering (IPO). With theexception of South Africa, Nigeria and Kenya,underdeveloped and illiquid capital marketscharacterize SSA. However, a nascent (butgrowing) secondary PE market has facilitatedsome trade sales in recent years. �

www.africanreview.com 23MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

PRIVATE EQUITY | FINANCE

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After suffering losses during the 1970s and 1980s, Peugeot Automobile Nigeria, (PAN), is returning to its leadershiprole in providing Nigerians with reliable cars. IIiya Kure reports.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com24

There was excitement at theevent centre Lagos in Januarywhen Peugeot Automobile

Nigeria (PAN) Ltd unveiled one of itslatest models, the 3008 Sport UtilityVehicle (SUV) into the Nigerian market. The excitement may not be

unconnected with the fact that PAN,a leading manufacturer of cars inthe country is gradually regaining itsstrength, having suffered losses, ithad in the 1970s and 1980s floodedthe Nigerian market with its brandsincluding 304, 404, 504 and 505. Inthe 1990s and 2000s the companyproduced and supplied among

others 206, 207, 406 and 605 models.The company is currently producing

and supplying the brands of 301,508, 4008, and 3008 among others.Presenting the new Peugeot 3008,

the chief executive officer of PAN,Ibrahim Boyi said the car hasalready won 35 global awards,including the prestigious EuropeanCar of the Year Award 2017.“In the UK alone, it has won an

impressive array of automotiveaccolades, including those for AutoExpress magazine and, most recently,Best SUV 2018 in the Carbuyer Car ofthe Year Awards. The 3008 SUV has

impressed many awards panelsaround the world thanks to itsdynamic qualities, stylish exterior,equipment, interior design and itsinnovative Peugeot i-Cockpit®.”In December, the Peugeot 301

Model had retained its position as2017 Nigerian Car of the Year,awarded by Nigeria Auto JournalistsAssociation (NAJA), beating NissanAlmera and Kia Rio. NAJA also named PAN’s plant as

2017 Car Plant of the year.Unveiling the 3008 Model,

chairman board of directors of PAN,Munir Ja’afaru, expressed delightthat the company is returning to itsleadership role of providingNigerians with durable cars.“The vehicle is lighter, yet more

agile and responsive than previous

generation models. This furtherdisproves the common notion thathigher displaced engines are moresuitable for SUVs.Boasting about the 3008 model,

he said, “Its sleek exterior, futuristiccabin and several unorthodoxfeatures take it on a journey toexplore unchartered territories of theSport Utility Vehicle (SUV) segment.“Combining style, athleticism,

and efficiency, the Peugeot 3008SUV fits the exacting needs of thepremium segment in the country,providing the best of all worlds toboth drivers and passengers alike.

Emerging through turbulentwatersPAN was founded in 1972. Itsassembly plant and headquarters are

Peugeot Automobile Nigeria is back in the game

By 2050 Nigeria will be producing fourmillion cars annually ”BENJAMIN MAIGARI, LOCAL

Ibrahim Boyi, chief executive officer of PAN, said the new Peugeot 3008 has alreadywon 35 global awards.

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located in Kaduna, northern Nigeria.At its peak, the company

produced 90,000 vehicles annually,exporting to markets in West andCentral Africa. More than 4,000workers were directly employed.Sixty per cent of raw materials werederived from Nigeria, empoweringmore than 7,000 people.

The company got caught up inthe web of government policies. Itwas privatised in 2016 and handedover to one of its leading dealers,ASD Motors, who paid US$32mn.

The company suffered losses, itsrevenues declined from N30bn in2007 (about US$200mn) to less thanN2bn (about US$12.5mn) in 2013,while sales declined from 12,000vehicles in 2007 to less than 1,000vehicles in 2013. Production fell to200 vehicles per annum.

Worried by the development,Nigerian government in 2012, throughthe Asset Management Company of

Nigeria (AMCON) took over 80 per centshares of the company.

PAN was revived through the2013 auto policy, which discouragesvehicle importation, but taskscompanies with establishing

assembly and manufacturing plantsin Nigeria.

Waxing stronger Despite the economic downtown inNigeria, declining value of the naira,

difficult access to forex and erosionof infrastructure, the company’srecord shows it is currentlyoperating at a profit level.

In 2017 alone, its revenue grewby 65 per cent from N3bn (aboutUS$8.33mn) to N5.3bn (aboutUS$14.7 mn), operating profit by 78per cent, i.e. from N408mn (US$1.13mn) to N 719mn (about US$2 mn),making it one of the mostturnaround firms in Nigeria.

Its market share rose from 2 percent in 2013 to 12 per cent by 2017– production increased from 200cars to 800 within the same period.

Head, corporate communications,Haroun Malami, told African Review that “the company has alsorevived and expanded its network ofdealers from nine in 2007 to itscurrent network of 21 dealers acrossthe country.

He remained optimistic that thelocal content will improve and the

Peugeot Automobile Nigeria is regaining its strength after suffering losses.

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company will go into full scaleproduction, with high input fromthe local content.

Malami said PAN is partneringwith some organisations through asocial responsibility programme “toclose the existing skills gap in theautomobile industry in Nigeria,where PAN will provide a formalisedoperating structure for the fragmentedauto mechanics across the countrythrough training and seed capital.

“The aim is to upgrade thestandards of practice to primaryautomobile service centres, as wellas provide job opportunities foreconomic empowerment.”

According to Malami, the companyhas through its World Class LearningCentre trained more than 1,000 youth,including more than 200 women.

“We have a dynamic leadership,our MD/CEO, Ibrahim Boyi won theAutomobile CEO of the year inrecognition of his outstanding

performance of turning around the fortune of PAN Nigeria Limited,” he said.

Nigerians like Benjamin Maigaribelieve that the ongoingdevelopment at PAN will turnaround the fortunes of the companyand Nigeria as a whole.

“If PAN comes back to its feetagain, a lot of Nigerians will benefit.In the past, chairs used by Peugeotwere completely produced in thiscountry. The glasses were made inNigeria, the bumpers were alsomade here. Isn’t this what we calljob creation?” he said.

“What government needs to do isto ensure the full implementation ofthe Auto policy to stop theimportation of used cars. Only thiscan make us progress.

“A projection byPricewaterhouseCoopers (PwC)reveals that if we continue well, by2050 Nigeria will be producing four

million cars annually – that meanswe should be exporting vehicles toneighbouring countries,” he said.

Promising futureIn 2016, Nigeria’s parliamentordered 360 Peugeot vehicles for itsmembers, in a stand against thepractice of importing cars. Chairmanof the House Committee on Mediaand Public Affairs, AbdulrazakNamdas, said, “Peugeot is a localvehicle assembly plant. Bypatronising them, it is the decisionof the House that we will begenerating employment andpromoting made in Nigeriaproducts. That is the difference.

“Each unit is N10mn (aboutUS$28,000) which is, again, farcheaper compared to when we haveto import the cars.

AMCON, the government organcontrolling the 80 per cent shares ofthe company has also gone into

campaign for patronage of thecompany’s brands.

Speaking at the 2018 DealersConvention of the company inKaduna, head of subsidiaries atAMCON, Ben Daminabo said, “This isthe best time for PAN NigeriaLimited to restrategise and moveahead like all other automobilemanufactures across the globe. It isour wish that Peugeot will reclaimits pride of place in Nigeria byproducing those vehicles that madethe brand very popular in thosedays. We believe the brand has all ittakes to dominate the marketplacebecause the new generation ofPeugeot cars are fuel efficient,durable; rugged and built forNigerian roads.

Aside from these attributes,Peugeot creates thousands of jobsfor our teaming population, which iswhy we all need to support thebrand because it is our own.” �

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MANUFACTURING | CARS

Hansa Heavy Lift has transported ahuge shiploader, with the largestunit weighing 513 metric tonnesand measuring a total of 65,480cbm, from Belgium’s Antwerp toAngola’s Namibe port.

The shiploader was transportedaboard HHL Valparaiso alongsideother equipment including areclaimer, an elevator and atripper car, as well as otheraccessories, with all cargo beingdischarged at the port.

“This was a challengingoperation that required strongengineering expertise and closecooperation with the customerthrough all stages of the project,from planning to discharge, inorder to ensure a smooth andflawless operation,” said BozidarUkas, head of offshore, engineeringdepartment at Hansa Heavy Lift.

“Due to the equipment’s overalldimensions, with the shiploadermeasuring 63.5m in length and thereclaimer measuring 57m in length,lifting operations had to be managedmeticulously and attention to detailwas a must,” said the company.

“We used the vessel’s cranes to

add the shiploader’s counterweightsfor lifting operations and toremove them for the voyage toensure safe lifting and sailingconditions,” the company added.

Hansa Heavy Lift secured thecargo with extra lashing for the

long-sea passage due to thepotentially adverse weatherconditions, and also made surethat ship movement alongside thequay was minimised.

Mobility and power checks werealso carried out due to the length of

time the equipment spent in storage.“The Hansa Heavy Lift team

handled this project efficiently andwith a high degree of professionalism,keeping us involved and informedat every stage of the process,” saidLuc Rom, Manora Logistics.

Hansa Heavy Lift transports huge shiploader from Belgium to Angola

The shiploader aims to execute alloperations to perfection.

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Following the good news ofIveco signing an agreementwith its partner, the Moroccan

Premium Group, to provide 105waste management vehicles in theCôte d’Ivoire, Sylvain Blaise fromIveco Bus, catches up with PierreLahutte, Brand President Ivecoabout the company’s plans for theregion and developments in 2018.

How do you see the marketsituation in Africa?PL: 2016 and 2017 have been criticalyears, mostly due to oil prices andinflation, which have put on holdimports in major markets, such asAlgeria, Nigeria and Angola. Othermajor markets have slowed downbecause of the ongoing conflicts,which are draining currency awayfrom industrial and constructionactivities. That said, the market hasnever really stopped, and countriessuch as Morocco and Tunisia havecontinued to grow. In the lastmonths of 2017, with the increase in

the price of oil, we have begun tosee the first positive signs and wecan expect a better trend in 2018.

What are the main values of Ivecoin Africa? PL: First of all, we have the widestoffer in the market, which rangesfrom light commercial vehicles toheavy trucks and personalisedsolutions. We are able to meet thespecific requirements of transportoperators in a wide variety ofindustries. Even better, we have multi-award

winning products in every singlesegment of our offering, and this is aninvaluable guarantee of performanceand quality for our customers.In the Light Commercial Vehicle

segment we offer the Daily, whichhas been recently been crownedInternational Van of the Year 2018 – and this is just the latest in along string of awards won by thisproduct family. In the medium range, the

Eurocargo, which won the title ofTruck of the Year 2016, is known as the truck the city likes and theideal partner in urban missions,thanks to the advanced features thatoptimise efficiency, manoeuvrabilityand sustainability.In the heavy line, we offer both

on- and off-road ranges covering awide variety of missions: the Stralis,which includes models designed formissions ranging from regional tointernational long-haul transport;the Trakker range for the quarry andconstruction industries, and theAstra HD9 covering the heavy off-road missions in caves and mining.Iveco has deep roots that date

back to more than 150 years agoand bring together some of the mostimportant brands that have madethe history of transport in Europe.These brands include Fiat (Italy),UNIC (France), Magirus (Germany)and Pegaso (Spain) – brands whichhave a strong reputation in Africa,where they have built a

well-established presence over theyears, giving Iveco a unique heritageacross the continent. Our long-termcommitment to Africa, which datesback to the beginning ofindustrialisation in the region, hasenabled us to create the widespreadnetwork of professional dealers wehave today to support our customersin most African countries. However, we are constantly

working on further strengtheningour network and ensuring we havethe facilities we need to match theevolving requirements of the

Continued investment in developing local assembly capabilities and strengthening distribution networksare testament to Iveco’s commitment to bringing an extensive product offering to Africa.

Unstoppable force

TRANSPORT | INTERVIEW

In the heavy line, Iveco offers on- and off-road ranges for a variety of missions.

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Pierre Lahutte, Brand President Iveco.

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markets. Most recently, weestablished a new partnership withthe Moroccan Premium Group toserve the West African markets, andwe appointed a new dealer inKenya. We are also installingassembly plants in several parts ofthe continent to be closer to ourcustomers. We assemble right-handdrive vehicles and buses with ourSouth African joint venture to servethe sub-Saharan countries thatrequire this type of vehicle. Lastyear we opened new plants withlocal partners in Tunisia, Algeria andKenya, and this year we will start anassembly plant in Ethiopia with ourjoint venture partner.

What are the most significantmoments for Iveco in 2018? PL: In 2018 we will launch the StralisX-WAY. It is a truck that combinesthe on-road excellence of the Stralistogether with the legendary off-roadrobustness of the Trakker. This willbe the key moment of the yearcombined with widespread localaction at the start of a localassembly plant in Ethiopia and anextension of a Eurocargo assemblyplant in Algeria.

Can you give us further examplesof your commitment to theregion? PL: Our continued investments indeveloping our local assemblycapabilities and, very importantly,

in strengthening our distributionnetwork are testament to ourcommitment to the region. Theyenable us to bring customers acrossAfrica all the benefits of our extensiveproduct offering, together with theeffective support we provide inpartnership with our dealernetwork. And the markets recognizeour commitment and the quality ofour offer, as shown by the importantcontracts we close in the region. The most recent contracts are the

two major supply agreements inCôte d’Ivoire. The first one is toprovide 105 units consisting of 30light duty Daily vehicles, 21 mediumduty Eurocargo trucks and 54 heavy-duty Trakker trucks. Thevehicles, which will be supported byour partner Premium Group, aredestined for waste managementoperations in the city of Abidjan andsurrounding areas, serving apopulation of some 1.7 million.The second supply agreement is

for the delivery of 450 Iveco buses tothe public transport provider for thecity of Abidjan. Iveco Bus willprovide 400 Crossway Low Entrybuses and 50 Crealis city busespowered by Compressed Natural Gas(CNG) engines. Designed for heavy traffic routes,

the High Quality Mass Transit BusSystem that Crealis providesimproved service and comfort topassengers in a modern andwelcoming interior. The main

objective of this transport system isto encourage mobility and modalshift, while optimising costs. ACrealis line is less expensive than atram line with equal passengercapacity, because it is faster toimplement. Furthermore, thistransport system is subject to aneasy deployment and progressivedevelopment regarding budget andproject phases. In addition, Crealishas been developed withaccessibility for everyone in mind,with one-step access and an all-flatfloor that facilitates a better flow ofpassengers entering and exiting thevehicle and improves accessibilityfor persons with reduced mobility.This second agreement is also

testament to Iveco’s commitment tosustainability, and in particular tosupporting the transition to naturalgas as an alternative fuel intransport. In fact, Iveco was the firstmanufacturer in the industry tounderstand the potential of naturalgas as a sustainable fuel and wehave pioneered this technology formore than 20 years. We believe thatthe transport industry has a role toplay in the fight against climatechange and greenhouse gasemissions. Natural gas has proven tobe a mature solution that isavailable today at mass-marketlevel, providing a bridge to zero-emission mobility, and we are at theforefront of this alternative tractiontechnology. In fact, Iveco is the first

to offer a full range of natural gasmodels, from light vehicles to heavyvehicles and buses, ready to supporttransport operators andmunicipalities as their partner forsustainable transport.Africa has large natural gas

resources that can be harnessed todevelop sustainable transportsystems, bringing all the benefits ofthis technology to its cities andtransport operators. CompressedNatural Gas offers an immediatesolution to reduce theenvironmental impact of theiractivities in countries whereemission standards are much lessstringent than in regions such asEurope. In fact, the quality of dieselin many African countries hindersthe use of engine technologies incategories above Euro 3, with aconsequent impact on theenvironment. This issue does notapply to CNG technology, becausethe quality of natural gas is similarin all African countries, so allcountries can enjoy the full benefitsof this solution: low noise levels,high efficiency and low CO2emissions. In fact, CNG is generallymethane, which produces moreenergy than other hydrocarbon fuelsdue to its relatively high hydrogencontent and lower CO2 emissionsbecause of its low carbon content.These are the benefits that Abidjanwill enjoy with the Iveco Bus CNG-powered Crealis. �

Iveco signs an agreement with partner, Moroccan Premium Group, to supply 105 waste management vehicles.

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www.africanreview.com 31MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

KENYA | LOGISTICS

Nairobi’s state-of-the-art logistics centre draws new e-commerce operator.

Fast-growing Kenya-based e-commerce retailer Copia has been wonover by new state-of-the-art logistics facilities in Nairobi. Thecompany has just signed a long-term lease for nearly 4,500 sq m

space at Africa Logistics Properties (ALP) North Logistics WarehousingComplex.The e-commerce retailer specialises in supplying consumers in rural and

peri-urban Kenya but hopes to expand its offering across the wider region.Copia’s chief executive Tim Steel said the company’s business entails “acomplex and challenging” supply chain, hence its move into the newwarehousing site. “The facility is ideally located for us and our suppliers and perfectly

suited for us to reliably meet the daily delivery needs of our customers. It’llallow us to continue our rapid growth in using e-commerce to supplypreviously underserved communities.”It is also a big vote of confidence for the new ultra modern warehousing

complex scheme, promoted by developer ALP.The company is building Kenya’s first international standard grade-A

logistics warehousing on two separate sites around the nation’s capital. ALP North is a 50,000 sq m logistics and distribution hub at Tatu

Industrial Park in northern Nairobi due for completion in September.A second project, ALP West, is also now in development, with the

building of the road infrastructure on its 49-acre site on the A104 highwayto Limuru. Here, there are plans for a 100,000 sq m logistics anddistribution warehousing complex.Copia’s ALP North lease will enable it to operate from ALP’s 12m high

warehousing and to benefit from the highest pallet densities in the marketand therefore the lowest pallet storage costs per square metre. It means running thousands of deliveries a day from the e-commerce

company’s new central distribution hub to its agent network across theregions. ALP has already leased 14,000 sqm of its Phase 1 warehousing tofreight forwarders. Its chief executive, Toby Selman, said the new service was ‘disrupting’

the traditional local warehousing market. �

E-commerce fuelslogistics innovation

Copia is impressed with ALP’s new warehousing complex in Nairobi.

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GE’s Power Services division has signed a multi-year service agreement with oil giant Shell PetroleumDevelopment Company (SPDC) for its 650MW Afam VI combined cycle power plant, located in south-eastern Nigeria. SPDC and its partners in the joint venture, built the Afam plant to help meet Nigeria’s electricity

needs. The plant provides enough electricity to power more than three million Nigerian homes at peakperformance.GE said with the new service agreement, it will improve power availability, reliability and output at

the site, while decreasing its operational costs. “At optimal performance, the Afam VI plant can provide up to 15 per cent of the total national grid-

connected electricity − this agreement will ensure we reach this performance objective and delivermuch needed power to the national grid,” said Dr Philip Mshelbila, SPDC’s general manager, gas.“Since its commissioning in 2008, the Afam VI Power Plant has delivered more than 25.97 millionmegawatt-hour (MWh) of electricity into the Nigerian market and won an award by the United Nationsfor reducing carbon emissions through environment-friendly operations,” he added.The agreement will cover planned maintenance for the three existing GE GT13E2 gas turbines as well

as one GE steam turbine. In addition, the order includes GE’s MXL2 upgrades to help increase the plantcapacity by up to 30MW while increasing its efficiency.“We have a long history of collaboration with Shell Petroleum, which has the largest footprint of all

the international oil and gas companies operating in Nigeria, having supported the plant operations onpower generation since its inception in 2008,” said Elisee Sezan, general manager of GE’s PowerServices business for sub-Saharan Africa. “With this latest agreement, we are working to bring improvedperformance and enhanced efficiency to their operations.”In addition to increasing power output by up to 30MW, upgrades on the turbines are expected to

deliver a combined-cycle efficiency increase, resulting in significant fuel savings and reduced CO2emissions. GE’s solutions will also extend inspection intervals for the gas turbines reducing maintenanceand repair expenses, which, in turn, will reduce overall plant costs and result in improving profitability.SPDC is a joint venture between Shell and the government-owned Nigerian National Petroleum

Corporation (NNPC), alongside other international oil companies Total and ENI.

The UK’s Department for International Development and theUnited Nations Capital Development Fund in Uganda have teamedup for a new solar power initiative. The partnership will provided assistance to the Uganda Solar

Energy Association (USEA). “A well-functioning USEA will lead to an increase in the

number, performance and investment in solar home systemcompanies,” said Jennie Barugh, head of DFID Uganda. “Combinedwith other initiatives of the ‘On and Off-Grid Small ScaleRenewable Energy in Uganda’ project, this work will contribute toimproved clean energy access for more than 200,000 householdsand businesses."

UGANDA SOLAR ENERGY PARTNERSHIP

The Afam plant will help meetNigeria’s electricity needs.

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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com32

GE lands Afam power services contract

Germany’s CRONIMET Mining PowerSolutions GmbH and local partner MOSTEhave signed a Memorandum ofUnderstanding (MoU) with FUNAE, a publicinstitution in Mozambique promoting ruralenergy access, to develop the country’slargest pre-paid solar mini-grid on ChiloaneIsland in Sofala Province.The solar mini-grid will be the country’s

first privately developed and financed mini-grid, and is expected to generate up to200kWp of solar power that will electrify theisland’s households, public institutions,commercial enterprises and water pumps. “We’re excited to implement this

electrification project on Chiloane Island,”said David Robinson, head of businessdevelopment for CRONIMET. “It will providereliable, 24-hour clean energy access to thecommunity. This mini-grid will betransformative for the island’s residents andwill serve as a scalable rural electrificationmodel for Mozambique, where more than 18million people have no access to electricity.”Robinson recently visited Chiloane Island

with Joaquim Macanguisse, head of FUNAE’sBeira office, to conduct a preliminarydemand assessment and to meet localcommunity members. The island is located in the East Indian

Ocean approximately one kilometre frommainland Mozambique and has an estimatedpopulation of 3,000 inhabitants. Having noaccess to energy so far, residents relyprimarily on car batteries to meet energyrequirements. The lack of electricity meanslocal fishermen cannot produce their ownice to cool their catch sufficiently to be ableto bring it to the point of sale. With the solar mini-grid, island residents

will be able to produce their own ice.

MOZAMBIQUE PRE-PAIDSOLAR MINI-GRID MOU

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In 2018, Moteurs Baudouin is celebrating a veryspecial milestone: its 100-year anniversary. From humble beginnings making petrol engines

for fishing boats, it has grown into a leading forcein the marine industry, globally recognised for itsreliable and efficient engine and power generationproducts, with a strong footprint in Africa.In 1918, Charles Baudouin set to work creating

his first 5hp engine, constructed just a few metresfrom the Mediterranean Sea, in a small metalfoundry in Marseille, France. And in the 10 decades since, the engines have

become cutting edge, and the customer base hasgrown to include a variety of applications both atsea and on land. But one thing remains: marine isin Baudouin’s DNA.This marine heritage lies at the heart of

Baudouin’s success. When used in power generationapplications, customers are assured that everyBaudouin product is crafted to the same exactingstandards demanded of the harsh ocean-goingenvironment: durable, robust, and built to last.This is evident in the company’s comprehensive

range of engines and generators. This includes thetough M26.2 series, and the latest M26.3 commonrail engine range which extended marine power to1650hp while offering unmatched continuouspower to weight ratio and noise reductiontechnology. In 2017, Baudouin launched their innovative

PowerKit range of engines for power generationapplications. Using the same design philosophy ofthe marine engines, every PowerKit productincludes the engine, cooling system and air cleaner,with a choice of outputs spanning 15 to 2000 kVAfor both 50 and 60 Hz applications.In addition to high-end components and

engineering excellence, every PowerKit product isbacked by one of the best warranty programs onthe market: two years and unlimited hours forprime power applications, and four years forstandby power applications.Baudouin also delivers some of the longest

intervals between servicing and overhauls in theindustry. This, combined with excellent fueleconomy, gives their engines one of the best andmost competitive ‘total cost of ownership’. Yetanother reason clients all over the world trustBaudouin to stay up and running, whatever theirpower needs. “As we enter a new century in Baudouin’s

history, durability, reliability and clean powerremain our key focus areas,” said Fabrizio Mozzi,the company’s President and managing director. “Our completely new and extended product

range meets the most stringent customerrequirements, allowing us to access the majority ofglobal markets and applications. We have neverbeen better equipped to power our clients’ success,as we look to the next 100 years of excellence inthe engine industry.”

Baudouin celebrates 100-year anniversary

Baudouin factory as it is today.

POWER | NEWS

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The only country in Africa witha commercial nuclear plant isSouth Africa, and its output

delivers some five per cent of thenation’s power. The country’s activenuclear power programme sees avariety of endemic and foreignstakeholders all vying for positionon ambitions aimed at having moreplants running by 2030. At the sametime, other countries such as Nigeriaare potential collaborators with

Rosatom, while the likes of Algeria,Egypt, Ghana, Kenya, Libya,Morocco, Namibia, Nigeria, Senegal,Sudan, Tunisia are consideringnuclear to produce their powerneeds with a range of potentialcollaborators and ways forward onthe cards.

South Africa leads the wayIn October last year, it wasannounced that South Africa powergeneration giant, Eskom, had beengranted environmental approval bythe Department of EnvironmentalAffairs (DEA) to develop a newnuclear plant at Duynefontein – theNuclear-1 Power Station andassociated infrastructure – adjacentto its existing Koeberg power stationin the Western Cape. Dave Nicolls, Eskom’s chief

nuclear officer, said that theauthorisation by the DEA on the

Final Environmental Impact Reportfor the Nuclear-1 Power Station andassociated infrastructure had beenwelcomed as an importantmilestone in the developmentprocess of South Africa’s ongoingnuclear programme. Thesesentiments were echoed by themanaging director for the NuclearIndustry Association of South Africa(NIASA), who said that the approvalwas an important step in the rightdirection for the future of nuclearpower in South Africa.The Duynefontein site was selected

over four other potential sites. Meanwhile, Eskom’s Koeberg

plant in the Western Cape continuesto produce the continent’s onlynuclear-generated power. BuildingKoeberg at Duynefontein began in1976 and output began in 1984,with full production by mid-1985.The plant is situated on a 3,000 ha

nature reserve owned by Eskom,(one that contains more than 150different species of birds and half adozen small mammal species), andis located 30 km north of Cape Townnear Melkbosstrand on the westcoast. The plant’s two pressurisedwater reactors form the cornerstoneof the country’s nuclear programme.The reactors, designed byFramatome in France, supply thenational grid allowing any over-capacity to be redistributed toother regions in the country as andwhen needed. The plant is a 1,860MW-rated

facility with two large 970MWturbine generators, and its reactorsuse enriched uranium dioxidepellets containing gadolinium asfuel stock. Koeberg’s average annualpower output is 13,668GWh. Theearthquake-resistant plant is theonly provider of grid power to Cape

South Africa remains the only country in Africa generating nuclear power. Thatnuclear solitude is set to change, as more than 10 other African nations develop whatare already well-advanced nuclear ambitions.

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POWER | NUCLEAR

Koeberg is thecompany’smost reliablepower station ”ESKOM

The Koeberg plant continues toproduce the continent’s only nuclear-

generated power.

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A nuclear future for Africa

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Town and was designed to eliminatethe need for existing smaller fossil-fuel stations to continueoperating. The reactors are cooledby cold water from the AtlanticOcean and the plant’s low andintermediate-level waste is disposedof at a rural disposal site in theKalahari Desert at Vaalputs, 600 kmaway. High-level spent fuel is storedon site in special pools equippedwith high-density racking. The station operates on three

separate water, or coolant, systemsas opposed to other types of nuclearreactors where gas is used as thecoolant. Using three separatesystems is important as it ensuresthe water in the reactor, which isradioactive but is in a closed system,does not come into contact with theother two systems, thereby avoidingcontamination. Eskom says thatKoeberg ranks among the safest of the world’s top rankingpressurised water reactors of itsvintage and is the company’s mostreliable power station.The company sees nuclear

power as the vital to deliveringreliable baseload supplies acrossSouth Africa in the future. Thesemust be increased over the coming20-30 years to meet demands andwith gas and hydro options notviable and coal nowenvironmentally on the backburner, the ‘cleanness’ of nuclearand its relative cost effectivenessmake it the prime contender inEskom’s view to supply future needs.

Elsewhere in AfricaAs South Africa moves onwards withits nuclear programme, elsewherein Africa, embryonic and not-so-embryonic nuclear ambitions aregathering steam. In Nigeria,Russia’s Rosatom has signed a dealto build two nuclear power plants,with the Nigerian Governmenthoping it will mark the beginningof the end of its painful years ofpower crises. The two parties havebeen in discussions since 2009. Oneof the facilities will be built in thesouth and the other in thecountry’s central region.Construction is expected to beginbefore 2020. Rosatom is

understood to have been indiscussions in Ghana and alsoSouth Africa on involvement inrespective nuclear plants though anagreement in 2016 to build a plantin South Africa was, at that time,ruled unlawful by the government.As for other countries, the World

Nuclear Association has said that 12nations (including Nigeria) havebeen seriously considering nuclearas a way forward in recent years.Algeria, Egypt, Ghana, Kenya, Libya,Morocco, Namibia, Nigeria, Senegal,Sudan, Tunisia, and Uganda have alldeveloped and discussed plans, withsome already moving ahead, whileothers have stalled.

Footnote to a nuclear future With widespread inability togenerate enough electricity to meetthe needs of its people, the drive for Africa and various nationstowards nuclear as a way out,though contentious, makes muchsense. And while the word‘renewables’ will no doubt be on thetips of many people’s tongues as themore responsible and sustainableway forward, whatever the solution,bringing reliable electricity to some600 million people currentlywithout it across the continent willno doubt be welcomed, no matterhow it is generated. �By Tim Guest

The Koeberg plant’s two pressurised waterreactors form the cornerstone of thecountry’s nuclear programme.

NUCLEAR | POWER

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POWER | REPORT

The ContourGlobalpower plant in Togo.

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OPIC VP says financialcommitment will continue

In the last 15 years, OPIC’s long standing commitment in Africa hasgrown from US$2bn to US$7bn.

David Bohigian, the executive vicepresident of Overseas Private InvestmentCorporation (OPIC), the US government's

development finance institution, said thecontinent remained a place of investment andopportunity for the Trump administration andbusiness leaders from the both the US andacross the world.Speaking at a press conference on 30 January

following a visit to sub-Saharan Africa, where hesaw firsthand how OPIC-supported projects inthe health, energy and housing sector wereimpacting societies.He said, “I work with OPIC, which has been

helping emerging markets in developingcountries around the world for almost 50 yearsso that they can have a stability at the societallevel, country level and family level. “We have a long-standing commitment to

Africa and its people. OPIC works acrosspolitical risk insurance, private equity, projectfinance and has a global portfolio worthUS$23bn. About US$7bn of which is in Africaand over US$5bn over the last 15 years.“We look to operate in markets to help those

countries to develop by investing in thesemarkets. We are encouraged by the potentialAfrica has shown: strong economic growth,amazing demographics, and the reforms beingadopted to improve the business climate arehelping innovation throughout the continent.”Bohigian led a OPIC delegation to visit an

affordable housing project in Ghana, aninnovative eye care clinic in Cameroon, whichaims to perform 18,000 cataracts to help cureblindness, and a thermal power plant in Togo.He said, “We met the prime minister of Togo,

Komi Sélom Klassou, and the OPIC-supportedpower plant. The ContourGlobal power planthas tripled the amount of power available inTogo. OPIC supported that through financingand offering political risk insurance. The planthas reduced blackouts and has had a multiplieraffect across the economy.” When African Review asked in what way was

OPIC going to provide significant investment inAfrica's electricity sector to secure the region'seconomic development over the coming years,he said, “OPIC has a long-standing commitmentin Africa. Our portfolio has grown fromUS$US2bn to US$7bn in the last 15 years. In2017 alone, OPIC committed more thanUS$600mn to Africa across more than 20projects and supports multiple initiatives fromFeed The Future to Power Africa.“Power Africa is something that we will

continue to build on which has been designedto double the access to electricity in SSA. We arelooking across a range of all power types includingfull spectrum energy. As a participant in thepresident’s advisory council of doing business inAfrica, this administration and business leadersare also seeing opportunities there. I thinkOPIC’s signal is important that Africa is a placefor investment and opportunity, and as peoplelook to growth opportunities in the 21stcentury, the countries that I visited such asGhana, Togo and Cameroon represent that.”David Bohigian was appointed by President

Donald Trump as the executive vice president ofOPIC and joined the agency in August 2017.Prior to joining OPIC, he served as the managingdirector of Pluribus Ventures where he advisedfinancial services firms and growth companies. �

This power plant hastripled the amount ofpower available in Togo ”DAVID BOHIGIAN, EXECUTIVE VICEPRESIDENT OF OPIC

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AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com38

The largest balancing machinein Zambia was successfullycommissioned at Marthinusen

& Coutts’ Zambian operation inKitwe. The fully upgraded 12 tonSchenck machine is capable ofbalancing rotors up to 12 tons atoperating speeds up to 3300 r/min,5.5 metre in length and withdiameters of up to 2.2 metres. Careful planning and execution

by Marthinusen & Coutts, a divisionof ACTOM, ensured that themachine was successfully installed,calibrated and commissioned. The local M&C team receivedtraining to ensure optimumoperation of the machine.The in-house ability to precision

balance rotors to very high accuracyis a valuable service to customers inthe region, and it will no longer benecessary to transport largecomponents across border to SouthAfrica for this work to be done. Thislocal dynamic balancing service alsoexpedites the repair process,

reducing delivery time, and avoidingthe risks associated with longdistance transportation. All thistranslates into a bottom line costreduction for customers because ofthe quicker turnaround times. The service will prove to be

invaluable to customers and OEM’soperating in the Copperbelt region,and underpins Marthinusen &

Coutts Zambia’s position as theleading electro-mechanical repairfacility in the region.Over a period of four years

Marthinusen & Coutts Zambia hassuccessfully upgraded its testfacilities which can nowaccommodate AC and DC motors.The facility boasts a temperature-controlled burnout oven, curing

ovens and vacuum pressureimpregnation (VPI) tank.Furthermore, winding verificationensures that stators and rotors arewound to international and OEMspecifications. Further upgradeshave also been implemented to themechanical repair shop, which alsooffers machining, milling andsubmerged arc welding. �

M&C Zambia offers in-house 12-ton dynamic balancing service

SOLUTIONS | INNOVATION

The largest balancing machine in Zambia was successfully commissioned at Marthinusen & Coutts’ Zambian operation in Kitwe.

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Developing a future-proof industrialmodel, accompanying the sustainablecities of tomorrow, digitising networkmanagement processes: these are justsome of the new challenges taken upby Diehl Metering.

Access the Internet of Thingswith Diehl MeteringAs a provider of smart solutions,Diehl Metering accompanies waterand energy providers, localauthorities and industry in themanagement of their naturalresources. Thanks to its IZAR radiotechnology developed over twentyyears ago, connecting meteringequipment and consumptionmanagement devices is nothing newfor the Diehl Metering group. TheInternet of Things (IoT) – a smartnetwork of devices – is currentlyplaying its part in the digitisation ofinfrastructures to the full. With more

than 35 million active connectionpoints (hubs) throughout the world,and thanks to its constant

innovation, Diehl Metering canprovide complete IoT solutions forsmart metering «IoT4metering».

Smart metering for smartcities and industriesIn addition to smart park assist,waste collection and public lightingsystems, smart metering is a part ofthe smart city equipment and playsa major role in the digitisation ofsmart industry processes. DiehlMetering system solutions use theindependent and interoperableOpen Metering System (OMS)communication protocol. Thismakes it possible to digitise resourcemanagement processes for all typesof application. A complete IoTinfrastructure including analyticssoftware, in particular withIZAR@NET 2 and IZAR PLUS PORTAL,ensures optimum networkperformance.

For more information visitwww.diehl.com/metering or [email protected]

Diehl Metering accompanies water and energy providers, local authorities andindustry in the management of their natural resources.

Diehl Metering’s IoT Solutions: Smart cities and industries

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Air Liquide launched production at the world’slargest oxygen production unit for energy andchemicals producer Sasol in South Africa. The industrial gases company invested around€200mn in the construction of the Air SeparationUnit in Secunda, with a total capacity of 5,000tonnes of oxygen per day. The new facility was completed in less than threeyears from design to commissioning.

Secunda oxygen plant completed

BRIEFS

Fifteen of the UK’s top infrastructure companiestook part in a forum in Ghana during February tosharpen proposals on how they can deliverflagship projects, visiting sites in Takoradi, Tarkwa, and Tema. Central to the discussions were railways, ports,roads and mining infrastructure. Ghana’s economyhas received a massive windfall in recent yearsfollowing the start up of oil and gas productionoffshore, and with more to come.

Ghana infrastructure visit

Building work on Nigeria’s keenly awaited Lekki Deep Sea Port has finally commenced with theconstruction of the main breakwater at the port, located at the Lagos Free Trade Zone (LFTZ).It is hoped that the Gulf of Guinea port, which will cost around US$1.5bn, will eventually serve as aregional gateway for containerised, dry and liquid bulk cargo vessels.China Harbour Engineering Company Limited (CHEC) – the engineering and construction arm of

China Construction and Communication Company (CCCC) – is the engineering, procurement andconstruction (EPC) contractor for the project, through local affiliate, China Harbour Engineering LFTZEnterprise.Louis Berger Group, USA, one of the world’s largest multi-disciplinary infrastructure consulting firms,

is the project management consultant in charge of supervising the construction of the project.According to senior management at promoter Lekki Port LFTZ Enterprise (LPLE), which is fronted by

Singaporean logistics experts, the Tolaram Group, the breakwater construction is one of the largestcomponents of the overall port development.“The responsibilities of CHEC includes the overall design of Lekki Port, construction of the marine

and landside infrastructure for the terminals and utilities, and dredging of access channel and portbasin, while Louis Berger is responsible for contract management, design review and supervision of theconstruction work,” said Steven Heukelom, general manager, projects, of LPLE.The construction of Lekki port is one of Nigeria’s flagship new infrastructure projects, and is being

financed by a variety of sponsors including the African Development Bank.Upon completion, the port will be one of the deepest in West Africa, with 16.5-metre water depth,

and one of the most modern, efficient ports on the continent. It is hoped that the capacity to berthlarger vessels will position Lagos as a trans-shipment hub for the whole region.When completed, the 90-hectare port will boast a 1,500-metre breakwater and quayside, complete

with cargo-handling cranes and other equipment, as well as a 6 km long approach channel.Lekki will have the capacity to serve container vessels of up to 8,000 twenty-foot equivalent

units (TEUs) .

Hermann Kamte, young Cameroonianarchitect and the founder of companyHermann Kamte & Associates (HKA), is thedriving force behind the famous sketch ofLagos Wooden Tower. Originally designed as a submission for

Metsä Wood's City Above the Citycompetition, Kamte's design looks to tacklethe problem of poorly planned constructionin many African cities by pushing theboundaries of contemporary architecture.In the City Above the City competition,

participants were invited to suggest solutionsfor new housing on top of existing urbanbuildings, using Metsä Wood's Kertolaminated veneer lumber as the material.Kamte’s design used Kerto LVL to

construct an 87-metre high tower on top ofan existing concrete building in the heart ofLagos. Mixed residential spaces, separated byopen floors featuring sky gardens andamenities, are shaded and ventilated by astylised wooden envelope using symbols thatreflect Nigerian Yoruba heritage.According to Metsä Wood, a Finnish based

wood products groups, the Lagos designproject highlighted the potential of woodconstruction in Africa. “Seeing wood as a valuable and

sustainable resource could benefit Africansociety at large, but right now, for Africandesigners and builders, concrete and bricksare far easier to obtain and a lot cheaperthan wooden construction products,” it said,according to a statement.“However, there is still potential for this to

change. As we raise the profile of timber-based architecture, the demandwill grow and wooden building solutions willbecome cheaper and more accessible.”It said that engineered wood products

such as Kerto LVL create new possibilities forfast, light and green construction. “We need to build efficiently,” it added.

Lekki deep sea port construction getsunderway

LAGOS WOODEN TOWERINSPIRES INNOVATION

The US$1.bn port will have the capacity to serve large container vessels.

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Air Liquide launched production at theworld’s largest oxygen production unitfor Sasol.

Discussions were on railways, ports,roads and mining infrastructure.

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Construction and mining show time

REPORT | CONSTRUCTION

The industry’s finest will gather at the bauma Conexpo Africa trade event this month,a showcase for all the latest technology and equipment.

Africa’s construction eliteand visitors from aroundthe world are expected to

descend on Johannesburg forthe bauma Conexpo Africatrade event. The show gives exhibitors

and guests the chance tounderstand the trends andforces shaping today’s industryand to learn about newopportunities.It offers a showcase of the

very latest industrytechnologies in constructionmachinery, building materialmachines, mining machines

and construction vehicles. Despite difficult prevailing

economic conditions facingSouth Africa right now, interestin Africa’s long-term growthpotential bodes well forconstruction sector prospectsoverall.It explains the high level of

energy and enthusiasm theindustry will bring toJohannesburg’s expo centrefrom March 13 to 15.Southern Africa’s largest

construction equipmentmanufacturer, Bell Equipmentwill mark the 2018 event by

bauma Conexpo Africa displays the very latestindustry technologies in construction machinery.

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presenting its new range of KobelcoExcavators and introducing theDakar Rally winning KAMAZ range ofheavy duty tipper trucks.Mark Hughes, sales and

marketing director of BellEquipment Sales South Africa, saidhe expects both ranges to generateconsiderable interest at the show.“They bring quality and

competitive machine solutions toour local market, and all backed bythe most extensive support networkin southern Africa.”The Kobelco range of excavators,

from 5,5t to 85t, was added to theBell stable in mid-2017. “Through this partnership we are

able to offer competitively pricedand perfectly matched loading toolsfor our range of articulated dumptrucks in the construction,quarrying, mining and forestryindustries,” said Hughes.Additionally, the introduction of

the KAMAZ trucks at the end of 2017has given Bell a presence in thesouthern Africa tipper truck marketfor the first time, to further expandthe company's one-stop shopoffering to customers in the region.Although new to southern Africa,

KAMAZ has been around a longtime, established in 1969.Manufacturing out of NaberezhnyeChelny in Russia, today it accountsfor half the trucks sold in thatcountry, as well as being representedin 80 countries around the world. Other major players heading to

Johannesburg include The WirtgenGroup South Africa. It will also use the trade show to

display a range of its solutions for allareas of road construction as well asmining and minerals processing. The company will be promoting

major brands such as Wirtgen,Vögele, Hamm, Kleemann,Benninghoven and Ciber.

Waylon Kukard, sales manager,said the company sees the Marchtrade show as an important platformto showcase its class leadingtechnologies to local customers.However, he also noted the

current challenging operatingconditions facing the market, with adecline in total equipment numberssold during the past few years, duelargely to the tough economicconditions. For example, compaction roller

sales in 2017 were down 15-20 percent year-on-year in the differentranges in South Africa, with 350-400units being sold per year for the pastthree years. Roller sales are linked to

infrastructure development and

government expenditure has beenvery limited in the past few yearsand in some provinces non-existent. “The sector is currently under

pressure and declining with no realgrowth potential in sight,” he said. According to Kukard, it is during

such times that industry should beprepared to engage with originalequipment manufacturers (OEMs) ona consultative basis to see how bestto apply existing and newtechnologies developed by OEMs to keep operational and capitalcosts down. For example, one of The Wirtgen

Group South Africa’s main focusareas at the upcoming show issustainability and recycling of scarcenatural resources, which has beenthe foundation of its productdevelopment in recent years. “Resources such as bitumen, road

stone, layer works, among others,can be reused rather than beingdiscarded and replaced,” he said.The upcoming trade show in

Johannesburg will provide a platformfor such innovative technologies.

And, in the face of domesticeconomic challenges, it meanscompetitive pressures are all thegreater – pushing industry rivals togo that extra mile to secure newbusiness.Stephen Jones, Bell Equipment’s

group marketing director, reckonsthis means events like baumaConexpo Africa are all the moreworthwhile.“For users of equipment, the

southern African market is verycompetitive with good equipmentchoices significantly affecting thechance of success,” he said. “With a large number of brands

competing, there is value for usersof equipment to be able to visit onelocation and be able to closelyinteract with manufacturers anddistributors to help guide thosecritical buying decisions.” �

JCB and other construction brands will use bauma Conexpo Africa as an opportunity to showcase their latest products.

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There is value for users of equipment to beable to visit one location ”STEPHEN JONES, BELL EQUIPMENT’S GROUP MARKETINGDIRECTOR

CONSTRUCTION | REPORT

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March 13-15, 2018

Johannesburg, South Africa

www.bcafrica.com

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Martin Clark provides an overview of the construction trends across sub-Saharan Africa.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com44

Construction activity is pickingup across Africa asgovernments and the private

sector look to roll out more projectsfrom the oil and gas and miningindustries, through to infrastructureand commercial real estatedevelopments. Intriguingly, this has seen a rise in

the number of smaller valueprojects in recent times.Deloitte’s latest Africa

Construction Trends Report showsthat almost two thirds of projectstracked currently fall within theUS$50m-US$500m range. It said this could point to an

“unblocking of projects” amid

better economic conditions or arealisation that true mega projects(those above US$1bn) are slow toimplement, as well as complex toconstruct and to commission. There are still a number of

‘biggies’ underway, however, with 66 projects (around one in fiveDeloitte projects tracked) valuedabove US$1bn – including 13projects over US$5bn. Oil and gas projects account for

four of the five projects valued atover US$10bn.Spending at the moment is

heavily concentrated in three coresectors: oil and gas, transportationand energy and power.

As a region, Southern Africaboasts the largest number ofprojects tracked (with 93 projects),while West Africa holds the largestshare in terms of value (US$98bn).South Africa is also the

country with the most projects (44projects) while Nigeria has the mostby value (US$69bn).A predicted uptick in the region’s

economic growth during 2018 – andits resultant impact on confidence –could further bode well both forbuilders and financiers. Africa’s huge need for

infrastructure remains, of course. In sub-Saharan Africa – especially

in fast-growing states like Nigeria – the

long-term potential is enormous forfurther infrastructural development.But this will require time,

co-ordination and plenty of money. However, as global interest in the

region intensifies, then Africa’sconstruction outlook overallremains as bright as ever.

NorthThe comparatively well-developedNorth African market has seen asteady flow of real estate projectscome to fruition in recent times,predominantly in Egypt. It seems the country is now firmly

on the road to recovery in the wakeof its political crisis a few years

Contractors get busy building new infrastructure

CONSTRUCTION | INFRASTRUCTURE

Two thirds of construction projects fall within theUS$50mn-US$500mn according to Deloitte’s

latest Africa Construction Trends Report .

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earlier. The revival of the nation’sgas sector has also aided the recovery.North Africa’s real estate sector

activity is dominated by commercialreal estate (rather than industrialreal estate) in terms of both USdollar value and the number ofprojects, with a number ofrenowned hotel chains prioritisingthe market. While Egypt has accounted for the

lion’s share of projects in the pastyear or so, Morocco has also attractednotable investment in this area.A number of large transportation

projects are also underway, againproviding good opportunities forcontractors.Here, private domestic

construction firms play a moreprominent too, alongside a diverserange of international partners, witha limited role only for Chinesecontractors in contrast to other partsof the continent.Renewed life for Egypt’s gas

industry following a succession ofhuge offshore finds in the Nile Deltahas resulted in a flood of newmoney and development projects. Indeed, the whole region boasts a

strong oil and gas export industry,which continues to provide a solid

platform of work for theconstruction sector.North Africa’s single two largest

projects have been the multi-billiondollar developments of Egypt’srevitalised gas sector – the Shoroukconcession and the West Nile DeltaDeep project.Other major energy initiatives

include Egypt’s Mostorod refineryupgrade, the Reggane Northdevelopment and various gas powerprojects in Algeria, plus the Safisuper critical coal-fired power plantin Morocco.On the transportation side, major

projects underway include theHauts-Plateux motorway in Algeria,the Tangier-Casablanca railway inMorocco and Tunisia’s ReseauFerroviaire Rapide project.

WestHome to the continent’s mostpopulous state, Nigeria,hydrocarbon-rich West Africa is amarket with enduring long-term

appeal – and one seemingly poisedfor rapid growth.Nigeria’s population is projected

to jump from 186 million now tomore than 500 million by 2100,placing enormous demand on analready over burdened and ageinginfrastructure.Indeed, lawmakers last year

called on the government to declarea “state of emergency” for thecountry’s crumbling roads networkand tackle decades of infrastructuraldecay that has thwarted growth.If Abuja is to achieve its

objectives and diversify away fromcrude oil, which has propped up theeconomy for decades, then it mustget to grips with building new roadsand other major infrastructure.As a whole, the region is already

seeing the highest level of spendingin terms of overall constructionactivity – however, much of this isstill targeting the oil and gasindustry. This now drives massiveinvestment in emerging producers,such as Ghana as well as traditionalplayers, such as Nigeria and Angola.Nigeria’s US$15bn Egina gas field

is the standout project in the regioncurrently, and is expected on streamlater this year.Major transport and

infrastructure projects are underway

as well in Nigeria, notably in theports sector. These include theUS$12bn Olokola deep sea portproject, the Lagos free trade zoneport, and the Onne port complex. Other major transport ventures

include the Lagos-Kano rail projectand the Lagos Light Mass RailTransit, while the Calabar-Katsina-Ala super highway roads project hasan estimated value of US$3bn.Elsewhere, Ghana’s oil and gas

boom has likewise triggeredinvestment in related areas,especially in the power sector.Flagship developments nowunderway include the US$4bn AdaEstuary tidal power plant.On the real estate side there is

also plenty of activity in thisemerging regional market. InNigeria, this includes the ambitiousEko Atlantic real estate project,valued at around US$6bn. Across the region, Chinese

contractors play a prominent role indelivering new projects, alongsideprivate domestic firms.West Africa is also a market

showing signs of increasing maturity,with new real estate and servicesdevelopments cropping up in someof the region’s older oil economies.Work recently commenced on

Cameroon’s first destination

The Bechar Basin of northwestern Algeria reaches depths of 8,000 metres, and is a producing hydrocarbon region.

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Major energy initiatives include Egypt’sMostorod refinery upgrade and various gaspower projects in Algeria ”

CONSTRUCTION | INFRASTRUCTURE

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Value of projects by region

(valued at US$50mn+) (%)

East Africa 10.6%

Southern Africa 29.2%

Central Africa 3.2%

West Africa 32%

North Africa 25.1%

Source: Deloitte analysis, 2017

Number of projects by region

(valued at US$50mn+) (%)

East Africa 23.4%

Southern Africa 30.7%

Central Africa 6.6%

West Africa 26.1%

North Africa 13.2%

Source: Deloitte analysis, 2017

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retail mall, Douala Grand Mall &Business Park, which will comprise18,000 square metres of retail andleisure space.The project is being developed by

leading growth markets investorActis and local partner CraftDevelopment, and built by SouthAfrican contractor, Raubex. A formalground-breaking ceremony will takeplace in mid-2018.

EastAccording to Deloitte, East Africacontinues to stand out, both as agrowth region and as one focusedon creating a more conduciveenvironment for business anddevelopment through newinfrastructure creation. This hasdriven construction activity,enabling investment and business todrive forward new projects.The region typifies the pattern of

a shift toward smaller (though stillsignificant) projects.East Africa accounts for almost a

quarter of all projects on thecontinent tracked by Deloitte,though it represents just a littlemore than 10.6 per cent in terms ofUS dollar value.Indeed, the total number of

projects in East Africa jumped by asubstantial 65 per cent between2016 and 2017, the consultancysays, underlining its dynamism. Although Kenya has the largest

number of projects (23 versusEthiopia’s 20), the total value ofprojects in Ethiopia is almost twicethat of the value of projects inKenya. Ethiopia overtook Kenya asthe largest economy in East Africain 2016.The Grand Ethiopian Renaissance

Dam, worth US$4.1bn, remains themost valuable project in the region. A tangible illustration of the

region’s ambition is also highlightedby the construction of Kenya’s 70-floor Pinnacle Towers –complete with helipad at over 800feet – which will become Africa’stallest building once complete. TheUS$195m project is due to becompleted at the end of 2019.The transport sector dominates

activity, however, with 27 majorroad and bridge projects underwayaccounting for almost half of allactivity, highlighting the trendtowards intra-regional infrastructureconnections. Energy and powerprojects are also significant,accounting for nearly a quarter ofall projects across East Africa.More than 90 per cent of projects

are government-owned, highlightingthe limited impact of the privatesector within these core industries,although financing comes from avariety of other sources.Development finance institutionsremain important, while China also has an essential role in

bankrolling many of the bigconstruction projects. China is also the most visible

builder, playing a major part inconstructing many projects.Major cross-border initiatives

include the construction of the1,672km standard gauge railwaylinking Rwanda, Burundi andTanzania. The completed project, valued at

US$7.6bn (although construction hasnot yet started on all sections), willprovide freight and passenger servicesbetween Dar es Salaam and Kigali.The LAPSSET (Lamu Port, South

Sudan, Ethiopia Transport) Corridor,which includes port projects,highways, railways, an oil pipelineand airport projects, is also expectedto drive both intra-regional andinternational trade. The second largest project in

2016, the Mombasa-Nairobi railway,was opened in May 2017 and theTatu City project, 2016’s fourthlargest project, is currently betweenphases and so not undergoingconstruction. This is a region working hard to

push energy links too through theEast African Power Pool withprojects under construction to feedinto this network.In Kenya, the Lake Turkana wind

power project – the single largestprivate sector investment in thenation’s history – is also set to go

live this year. Ethiopia’s Koysha hydroelectric

dam is also the region’s secondlargest project by value, worth anestimated US$2.8bn.

SouthSouthern Africa continues togenerate strong work opportunitiesfor contractors, with the largest sliceof project activity. These projects areconcentrated in three major areas:real estate, transport and energyand power.The US$16bn development of the

Kaombo project in Angola’s offshoreBlock 32 by French oil giant Total ishead and shoulders above any otherin terms of value. The project willdeliver an extra 230,000 barrels ofoil a day when it reaches peakproduction.The emergence of Mozambique

as a major energy exporter is alsohaving an impact, with theconstruction of the Coral Southfloating liquefied natural gasproject, worth US$4.5bn.South Africa’s continuing

overhaul of its power sector alsoprovides a huge spending boost tolocal contractors. That includes theKusile coal-fired power plant(US$7.9bn) and the Medupi powerstation (US$7bn).Other major power projects

across the region include KafueGorge Lower in Zambia (US$2bn)

The Grand Ethiopian Renaissance Dam is themost valuable project in the country.

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CONSTRUCTION | INFRASTRUCTURE

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and the Lauca hydropower plant in Angola (US$4.3bn).And new projects are being booked all the time, including a raft of new

solar and renewable energy initiatives, as well as traditional energyinfrastructure. Fluor Corporation recently landed the engineering, procurement and

construction management contract for the Vopak fuel storage terminal inDurban (Vopak Growth 4 Project). Designed to facilitate increased demandfor fuel with cleaner specifications across Southern Africa, it will be one ofVopak’s largest storage facility projects in South Africa and the largeststorage project undertaken by Fluor in Africa.Botswana has kicked off a major 400KV electricity transmission project

as it seeks to bolster its energy supply. It is hoped the twin-phased NorthWest Transmission Grid Connection, worth almost US$500mn, and hookingup the Morupule B plant, will help lower the country’s dependence onelectricity imports from Zambia, Zimbabwe and Namibia.The high level of activity paints a positive picture as the industry prepares

to meet at bauma Conexpo Africa in Johannesburg, from March 13-16.This is expected to highlight a shift to higher quality construction

services as well within the region. “Construction companies are no longersimply looking to find the supplier with the lowest price, but want toensure top quality through best practices,” said Gan Luckun fromformwork and scaffolding manufacturer Doka South Africa.And, despite the number of prominent big budget construction projects

underway, the rise in smaller value developments is also no surprise,according to John Sheath, head of the non-profit Concrete Society ofSouthern Africa (CSSA). “Government programmes have recently been encouraging investments to

be made in smaller projects,” he notes. This is having an effect on demandwith contractors moving to some extent from large, expensive machines andsystems to smaller, less expensive units. “In order for us to achieve success inthe market, these systems will also need to be easier to operate than theirbig brothers as they will be used by less-skilled workers.” �

by Martin Clark

Kenya’s Pinnacle Towers will become Africa’s tallest building once completed in 2019.

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After 20 years in the making, the New Coastal Road (NCR) on Reunion Island is nearing completion with the firstsection due to open later this year. Samantha Payne reports.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com50

The New Coastal Road (NCR) onReunion Island will be awelcome relief to thousands of

local motorists who, for years, havehad to endure the threat of fallingrocks and multiple closures due tosevere weather – the old road isimpassable on average around 40times a year.

The new road will be situated at adistance from the volcanic isle onhuge columns rising out of theIndian Ocean, which will avoiddangerous rock falls. The €1.6bnproject has been billed as the mostexpensive road (per kilometre) inthe world.

It was back in 2013, when theRegional Council startedconstruction on the 12.5km roadafter 20 years of public debates,studies, enquiries around the needfor a new infrastructure. Pressuremounted substantially on theauthorities to take action after a

major rock fall cost the lives of twoReunion Island road users in 24March, 2006.

The road, which will provide asafer link between St Denis, thelargest city and La Possession; theisland’s other big city, and the mainport, Port des Galets. It is being built

by a consortium of Frenchcompanies including VinciConstruction Grands Projets,Bouygues Travaux Publics, DodinCampenon Bernard and DemathieuBard Construction. The first sectionwill be opening this year with theremaining section planned forcompletion in 2020.

New viaduct The most eye-catching part of theproject is the 5.4km viaduct builtalong the coastline from Saint-Denisto La Grande Chaloupe. It will beable to withstand 90mph hurricanewinds and waves of up to 10 metres.

Making waves on Reunion Island

CONSTRUCTION | REPORT

Manitowoc has provided exceptional cranesolutions to manage this project ”CHRISTOPHE SIMONCELLI, MANITOWOC VICE PRESIDENT OFSALES FOR FRANCOPHONE AFRICA

The 5.4km viaduct will be builtalong the coastline from

Saint-Denis to La Grande Chaloupe

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REPORT | CONSTRUCTION

The major difference with the new roadcompared with the current coastal route (RN1)is that it will have three lanes in either directionincluding two integrated bus lanes andprovision for cyclists and pedestrians. It isexpected to play a major role in the economicrevival of the island, especially the tourism andconstruction industries.

Building the viaduct The viaduct will have 48 bridge piers and asupporting structure comprising 1,386 precastsegments. The bridge piers, weighing 4,800 tons,are prefabricated at the first production site atPort Est and then transported and installed on-site using the world’s largest offshore

overhead travel crane, manufactured byEnerpac, that is mounted on ‘Zourite’ – a 107-metre long and 44-metre wide barge. The bargeis being powered by four Cat 3508 marineengines and is equipped with a concrete mixer,built specifically for the project.The second production site is in the Rear Port

Zone for the prefabrication of the voussoirs –the arch-shaped sections used in the building ofa viaduct – for the deck.The prefabrication method of construction

for the structure ensures a maximum amount ofwork is carried out in optimal conditions ofwork and safety and “minimises operations atsea, which can be very constraining, notablywith respect to meteorological conditions. Thepossibility of working or not depends onpredetermined criteria such as wave height,wind speed, type of activity and equipmentused”, stated the report Laying the CoastalViaduct Bridge Piers at Sea.

ManitowocGrues Levages Investissements (GLI) isManitowoc’s official French dealer for ReunionIsland, and has invested heavily in supplyingtop quality cranes for this project. Theseinclude two Potain MD 485B M20s, two MDT368 As, one MD 560 B, a Potain K5-50C, aManitowoc 12000E-1 crawler crane, seven Grove all-terrain cranes and two Grove roughterrain cranes.The major project has faced many challenges

With a project asimportant as this oneon Reunion Island,everyone wants toknow it has been builtwith quality ”NEAL MARKHAM, CATERPILLARSTRATEGY MANAGER

The 6015B hydraulic shovelpictured arriving at Cat dealerSCIMAT on the Reunion Island.

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as the structure is being built on amaritime site, explains ChristopheSimoncelli, Manitowoc vicepresident of sales for WesternEurope and French speaking Africa. “Manitowoc has provided

exceptional crane solutions as wellas a proactive approach tomanaging this project,” he said.“Potain was selected because it isthe world’s leading tower cranebrand with a long track record ofsuccess. The compact Grove craneswere chosen for their excellent on-site flexibility while the Manitowoc12000E-1 crawler crane providesoutstanding manoeuverability as itcan be extended and retracted aswell as its ease of use and lowmaintenance requirements. Inaddition, GLI has provided thehighest quality cranes coupled with outstanding service and hasbeen a major factor to the success ofthis project.”Other cranes are supplied by

contractors Vinci ConstructionGrands Projets and Bouygues TP.

CaterpillarCat dealer SCIMAT suppliedequipment and services for thewhole length of the 12.5km project.The 6015B is a 140 tonnes

hydraulic shovel, more commonlyfound in mining applications hasbeen working under the water line,laying material. Its boom/stick is 34m long and this machine can only beshipped in parts. his model waslaunched at bauma Conexpo Africa 2016.The Cat 336F excavator, the 740

articulated truck, the D8 dozer andthe 988H wheel loader have beeninvolved with the earthmoving partof the project.

The two 390F excavators have beendigging up to 25 metres under thesea, creating a solid foundation toplace the viaduct supports.Neal Markham, strategy manager

at Caterpillar, “With a project asimportant as this one on ReunionIsland it is certain that the contractorsinvolved, and everyone who uses thenew road thereafter, want to knowthat it has been built with quality.Quality to withstand the frequent rainstorms and sea activity, quality to lastand quality to make sure that safetyremains paramount. The provision ofCat machines and our dealer SCIMAT’svast experience shows that quality iscertainly a major focus of this project.“In difficult construction scenarios

such as digging underwater (where

one cannot see the bucket), orloading heaving materials intosensitive areas, one needs a machinewhich can perform, is reliable andefficient. Caterpillar engineers haveinvested significant time and moneyinto R&D to make sure we can offermachines to match suchconstruction activities. We are proudto be a part of this iconic project andcontinue to support both the dealerand customer in making sure theyare going to meet their overalldeadlines.”

Update on worksThe Grande Chaloupe Viaduct wasdelivered and inaugurated on 6September, 2017. Sea and landworks are continuing on the Viaductdu Littoral. The voussoirs for thedecks, weighing up to 670 tons arebeing transported by high-capacitymulti-wheeled trolleys, known asfardiers and put in place by Zouritethe mega-barge, while otherelements are transported to thelauncher station, which is a largebeam at Port Est. �

The road will becompleted by 2020.

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CONSTRUCTION | REPORT

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• The construction of the upper part of the Saint-Denis dyke continuesand the lower part of the south dyke section from the Grande Chaloupewill be completed

• The continuation of the construction of the supports and the deck ofthe Viaduc du Littoral

• The continuation of the upper dykes D1 and D3; and the start of thelower dykes D4 and D5

• The contract award for paving at the end of 2018• The contract award to build the Saint-Denis interchange in February2018 and to start work in the second half of 2018

• Construction of the dykes continues: completion of the construction ofthe lower part and upper part of the Saint-Denis dyke and completion of the lower part of the south dykesection from the Grande Chaloupe

CONSTRUCTION WORKS PLANNED IN 2018

Timeline for New Coastal Road on Reunion Island

2012 : Signature of the Public Interest Project decree

2013 : Start of construction of the New Coastal Road

2014 : Construction work begins on La Possession dyke supporting the junction of

the RD41 road) and viaduct of Grande Chaloupe

2015 : Start of construction of large scale marine structures (dikes/ viaducts), after a

preparatory period of approximately one year for mobilisation of

equipment, such as offshore platforms that will be necessary

2018 : Public opening of the first section

2020 : Public opening of the second section

Source: www.nouvelleroutedulittoral.re

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SMT Africa signed a dealershipagreement with Sennebogento cover Northern, Western

and Central Africa. The deal, signed at the end of

2017, sees SMT Africa supplySennebogen Green Line materialhandling equipment forapplications including port,recycling and mining.

Sennebogen, one of the world’sleading material handlingequipment manufacturers, hasbeen convinced by theprofessionalism and the quality ofservices provided by SMT to buildstrong relationships in theseimportant African markets. For SMT,the new agreement broadens itsproduct range and strengthen itspremium position in the heavy

equipment market, as SennebogenGreen Line equipment uses state-of-the-art technology based onprecision and innovation.

As SMT has been a partner ofSennebogen in Europe for morethan 20 years, SMT Africa willcapitalise on this experience todistribute Sennebogen Green Line’sindustry-leading products andservices via its network of localoffices and workshops.

Christophe Blazère, CEO of SMTAfrica adds: “We are delighted totake on this new challenge thatstrengthens our position in Africa.SMT Africa is committed to take theSennebogen business to the nextlevel, delivering the highest servicestandards for the benefit of ourAfrican customers.” �

SMT Africa has signed a dealership agreement with Sennebogen to supply materialhandling equipment.

www.africanreview.com 53MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

SMT Africa strengthens position in Africa

CONSTRUCTION | SOLUTIONS

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Intermat Innovation Awards 2018 attracted 90 entries from exhibitors, all of whom will be at Intermat from 23 to 28April, 2018. The 37 nominated applications from manufacturers and suppliers came from 16 countries.

www.africanreview.com

The winners of the Intermat Innovation Awards 2018 were announcedat a special pre-Intermat ceremony in Paris on 16 January. TheInnovation Awards pays tribute to the most innovative equipment

presented by exhibitors who will be at Intermat from 23 to 28 April. This year, the competition was divided into the exhibition's four hubs ofexpertise: earthmoving and demolition, minerals and foundations, lifting,handling and transportation and building and concrete sector.

In the earthmoving and demolition category, Volvo CE wowed judges withits EX2 prototype – the world’s first fully electric compact excavator whichdelivers zero emissions, with 10 times higher efficiency and 10 times lowernoise levels.

Mecalac won the Energy Transition Award for the Mecalac e12 – theworld's first compact wheeled excavator run only by electricity. It meets thethree major requirements for the urban building sites of today andtomorrow: range, performance and compactness. The internal combustionengine in the electric version of the 12 MTX now houses LiFePO4 batterytechnology – lithium iron phosphate for three times as many charge cycles –that combine a service life, comfortably better than classic batteries, withcomplete safety: no risk of fires and no risk of battery fluid leaks.

360 SmartConnect won in the components and accessories category, in thebuildings and concrete sector, for its revolutionary solution; ConnectedConcrete. The concrete is transformed into an interface of data and servicesassociated with the structure, that any smartphone can access.

Fayat won the Equipment and Machinery Award in the roads, mineralsand foundation category, for its TRX solution. The first mobile continuousasphalt plant in the world that can recycle up to 100 per cent of asphaltaggregates. It is able to run on a range of 150 to 430t/h. �

Celebrating the best in construction solutions

SOLUTIONS | CONSTRUCTION

Equipment andMachinery Award:Volvo CE - EX2

Energy Transition Award: Mecalac –Mecalac e12

There were 13 winners in total. Earthmoving and Demolition: Volvo CE –EX2 (Equipment and Machinery Award) DMIC – Ubiwan Smart (Componentsand Accessories Award); Roads, Minerals and Foundations: Fayat - TRX(Equipment and Machinery Award), RB3D – Exo Push (Components andAccessories Award); Lifting, Handling and Transportation: Hinowa S.pa.tracked aerial platform Lightlift 33.17, performance IIIS, (Equipment andMachinery Award) Manitou Group – machine stablisation recognitionsystem (Components and Accessories Award); Buildings and ConcreteSector: ALPHI – MaxUpDown (Equipment and Machinery Award),360SmartConnect – connected concrete (Components and AccessoriesAward). Special awards: Digital transition award: EFA France – EVAS; EnergyTransition Award: Mecalac - Mecalac e12; Start-up Award by Eurovia: Matos– Matos-Connect; World of Concrete Europe Award: Sika France – concrete3D printing; Safety Award: Sima – handsafe wood cutting saw.

Components and Accessories Award: 360SmartConnect – Connected Concrete

Equipment and Machinery Award: Fayat – TRX

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 201854

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Acsend Concrete Ltd in Harare, Zimbabwe, is aprovider of pre-cast concrete solutions andmanufactures pre-cast concrete pipes with their ownfleet of trucks to deliver products to site.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com56

In keeping with technological market trends and demand, AcsendConcrete in 2012 decided to expand their production capacity andimprove productivity with the strategic intent of exceeding customer

expectations.In a bid to explore different production technologies and to get

inspiration from other concrete producers, managing director and ownerAntony Benesi toured concrete pipe factories in Scandinavia. Based on theoutcome and experience from this tour, he decided to invest in a VIHYMulticast SCV 120 production plant from HawkeyePedershaab.Since installation, the new machine has significantly enhanced product

quality and consistency to product specification, which has ensuredAcsend Concrete’s customers reliable and high quality products. In

New tech for concretepipes in Zimbabwe

The co-operation withHawkeyePedershaab has given me astate-of-the-art production plant ”ANTONY BENESI, MANAGING DIRECTOR, ACSEND CONCRETE

VIHY Multicast SCV 120 is a versatile vibration machine for production of manholesand short pipes up to 1,200mm diameter.

COMMERCIAL FEATURE

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addition to this, the VIHY Multicast SCV 120 with the unique verticalvibration system gives Acsend Concrete high flexibiltiy and versatility,enabling them to introduce new products to the market – products whichBenesi had seen on his trip to Scandinavia and which he had no doubtwould bring great value to the Zimbabwean market.The plant was commissioned in 2014-2015 and Acsend Concrete now

supplies concrete products of the highest quality to their markets.

Joint project developmentAcsend Concrete and HawkeyePedershaab worked closely togetherthroughout the whole project. Benesi explains, “I knewHawkeyePedershaab and their machines from previous experience, so Ihad no doubt they could supply the equipment I needed. But equallyimportant they were a very valuable partner and an incredible source ofinformation in the design phase of the whole plant. They assisted in thedesign of the batching plant, the design of the building, the logisticsinside the building as well as the outside logistics around incomingmaterials and outgoing products. “The cooperation with HawkeyePedershaab has given me a

state-of-the-art production plant where we not only are able to supplytoday’s products, but also the products of the future. A dependableprecast product has its roots deeply embedded in an equally reliableproduction plant.”

Fact boxPlant description• VIHY Multicast SCV 120 pipe machine• Mould equipment for 450-1,200mm pipes, L=1,25m• Mould equipment for 900-1,050mm manhole rings• Automatic concrete batching and mixing plant• Concrete laboratory equipment �

Acsend Concrete managingdirector, Antony Benesi

I had no doubt they could supply theequipment I needed ”ANTONY BENESI, MANAGING DIRECTOR, ACSEND CONCRETE

of concrete pipes and manholesoductionound vibration machine for prAll-r

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Howard Dale, chairman of LiuGong Dressta Machinery, shares with African Review his business insights in 2018 and how the recent investment in Poland, is supporting the company’s global operations.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com58

How has the working relationship between LiuGong andDressta developed since theacquisition in 2012? The business relationship betweenLiuGong and Dressta has developedincredibly well on a number oflevels. First of all, we’ve hadprogressive investment in theDressta business in Poland. Lastyear, we invested in a new partsdistribution centre in Stalowa Wolato support the global operations ofthe Dressta business. Also, in thearea of financing, by having a largeChinese multinational companybehind us, we have a much betterstanding with the equipmentfinances around the world.

Is Africa still the largest marketfor Dressta? As far back as 2016, Africa andMiddle East were the largestcontributor to Dressta sales. But in2017, the market for the whole ofAfrica for crawler dozers actuallydropped by 19 per cent, whileRussia and Central Asia came backfast and became our number onecontributor to overall sales revenue.

What products do well in Africaand what are your most recenthigh profile projects?Dressta is a brand that offers a fullline of crawler dozers from 94 hprating to 536 hp. We have a widerange of products to suit various

applications; from oil and gas, roadsand highways and mining to forestryand landfill. But the core productthat is particularly suited to Africaand the Middle East is the TD-25crawler dozer; a 330 hp machine,with an operating weight of42,670kg. This machine is typicallysuited to road and highwayconstruction projects as well as inquarrying and mining operations. Ithas proved itself very well in thediamond mines of Sierra Leone. It'sthe real workhorse of Dressta in theAfrican markets. In Algeria, we’vehad great success with TD-25s andour pipe layers with ENAGEO, one ofthe country’s largest oil explorationcompanies. We’ve also enjoyed

strong sales in Ethiopia and ourdozers have been supporting themajor land preparation project forsugar cane plantation. The landfillsector is also one of our major targetsegments for development acrossAfrica and the Middle East in thecoming years.

What new trends in growth areshaping Africa at the moment?In 2016 and early 2017, demandhas been dropping progressively inAfrica and the Middle East.However, from November last yearwe started to feel the resurgence ofthe market, partly by the recoveryof commodity prices, with coal andiron ore, and are definitely seeing

Dressta improves presence in African markets

CONSTRUCTION | CRAWLER DOZERS

Dressta SB-85, an important participator on apipeline project in Algeria.

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an uptick in coal mining. Aside frommineral extraction, roads andhighways as well as oil and gaspipelines are also good segmentsthat are seeing growth across theregion at the moment.

In which African countries areyou seeing the most business atthe moment? Ethiopia, Egypt, Algeria and SierraLeone.

How has Dressta benefited inAfrica from the access to theLiuGong network? First and foremost, it has been theway in which we conduct ourbusiness. Thanks to our ownershipstructure with LiuGong, we nowplaced staff in LiuGong facilities inJebel Ali, Dubai. It is a largeoperation, which includes a 5,000m2 parts distribution centre andenables our people to be closer tothe market and the customers thatthey serve out there. But in terms ofsynergy of actual distribution, inIran, for example, we work veryclosely with the LiuGong dealer. AsLiuGong and Dressta are in growthmode in Asia-Pacific, we’ve beenlooking at dealers that better servespecific market segments of the

brand. At Dressta we are lookingmore towards mining andquarrying, road and highway whileLiuGong is looking at constructionand general infrastructure.

How is Dressta continuing todifferentiate its product from thecompetition? If we look at our global productoffering, we offer two levels ofproduct in terms of the engine tierrating. For Africa and Middle East,there are Tier 3 engine solutions,which allows for generous type offuel conditions. We also have arange of products suitable forworking in very arid and hotconditions. Our machines areavailable with a relatively lesssophisticated engine and powertrainsystem. So, they are more durable,dependable and easier to maintain.Not only are they very suited to thetougher climatic conditions acrossAfrica, they are able to work in very

remote locations. The emphasis isbased on reliability and durability.

What are your targets for 2018? Our target this year is to bring onboard new dealers in Tunisia,Kenya and Tanzania. So, our focusis distribution development,building the support networkwithin Africa and the Middle East toreach our growth objectives.

Should we expect new productlaunches in 2018?We are in the midst of refreshingour range of pipe layers which willbe available towards the end of theyear. We have launched a new rangeof compact machines, primarily forthe north American market. AcrossAfrica and Middle East, we’ve beenable to partner with Trimble toprovide 3D systems which helps easeof operation and improves workingefficiencies. We’re also working on avery exciting project to launch a new

cab, which will give Dresstaoperators unrivalled comfort. Ournew modified cab design, which isapplicable to Africa, will beavailable in the second half of thisyear. We’ve redefined the airconditioning system and have paid alot of attention to operator comfortand ease of control of the machine.

Is the recent investment intofacilities in Poland relevant fordevelopment in Africa?It is relevant in terms of ourmanufacturing capabilities here inPoland where we have put in newassembly lines, new machinery andfurther improved processes andquality standards. The products arebuilt to world class manufacturingstandards and supplied directlyfrom Europe into Africa.

Is there anything else you would like to tell our readers?For the African markets whereaccessibility and availability iscrucial, I'd say what makes usunique is the connectivity of our newglobal parts distribution centre herein Poland with the parts warehousein Dubai that serves all ourcustomers in the Africa and MiddleEast region. We can now processparts orders almost simultaneouslythrough our advanced warehousingmanagement solutions. Through ourwide network coverage in Africa,now our customers have directconnectivity with our partsdistribution centre, which has madeit more efficient and time-effectivein getting parts rapidly: whateverthey need and wherever they are. �

A Dressta TD25 crawler dozer assists with levelling forgeo-seismic survey work in the Sahara

www.africanreview.com 59MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

We are bringing on board new dealers inTunisia, Kenya and Tanzania ”HOWARD DALE, CHAIRMAN OF DRESSTA

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CONSTRUCTION | ASPHALT

Application engineers from CIBER share the results of their study with some hot mix asphaltconcrete producers in Brazil to look at the costs involved in making good quality asphalt mix.

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Asphalt plant technology and effects on production costs

Asphalt plants should beconsidered as industrial unitscapable of producing

full-scale asphalt. The main functions of the plant are:accurately dose the aggregates andasphalt cement to ensure theproportion established in thedesign; completely dry and heat theaggregates, regardless of theirnature and characteristics, in orderto obtain prefect adhesiveness withthe asphalt binder; filter the gasesfrom the combustion of the dryingsystem and return to the mixer thefine aggregates that were naturallytransported by the gas current; mixthe aggregates from the dryer andthe fine aggregates from the bagfilter with heated asphalt in the tankaccording to its viscosity andoccasionally add additives to themix; and transport it to a storagesilo for subsequent unloading intothe truck and transport to the roadpaver finisher. These processes canbe carried out in various ways,depending on the technology ofeach plant and will have an impacton final product quality andproduction costs.

One of the goals of asphaltconcrete producers is to fabricatethe asphalt mix with the samequality as the mix produced inlaboratories, where the conditionsare controlled and the productionrate is much lower. The other goal isto produce it at the lowest possible

cost. The technologies primarilyused for dosing the materials anddrying the aggregates significantlyimpact the achievement of qualitygoals and production costs.

In terms of costs, a studyconducted by application engineersfrom Ciber with some hot mixasphalt concrete producers in Brazilshowed that more than 75 per centof the total costs involved arerelated to direct materials(aggregates and asphalt cement).According to the same study, thefuel used in the plant’s dryer andthe fuel for heating the asphalt inthe tank represent the third highestcost element, corresponding toalmost 12 per cent. The other costscombined (maintenance, freight andinstallation, infrastructure,electricity, wheel loader purchaseand manpower) represent less than10 per cent of total costs. Theinvestment in the asphalt plant hasa less than two per cent impact oncosts (based on average market pricein Brazil and calculating interestand depreciation on the equipmentaccording to market conditions in2017). The preparation of this studywas based on an annual meanproduction of 100,000 tons andrepeatability for five years, underthe same conditions. The cost ofpurchasing the inputs was accordingto the current situation in Brazil.Maintenance costs were determinedaccording to the cost of the wear

parts and the wear time of theseparts. Infrastructure costs includedthe price of a piece of land in a ruralzone with the area needed to installthe machinery and build thenecessary infrastructure for theoperation. Electricity costs werebased on the estimated energydemand of the equipment and localprice was set by the electric utilitycompanies. The wheel loader isbased on market price with interestand depreciation calculated underthe same conditions established forthe plant. Manpower was estimatedaccording to need during theoperation of the plant, managementand administrative needs.

Opportunities for savings in asphalt plantsThe opportunities to reduceproduction costs are concentrated inthe dosing and drying systemsthrough accurate dosing of theaggregates and especially theasphalt, and in achieving perfectcombustion and maximum heatexchange between the combustiongases and aggregates, resulting inlower fuel consumption.

The dosage variation of theasphalt in relation to design contentcan have relevant financial impactssince the binder represents morethan 50 per cent of total costs.

Asphalt plants must havetechnologies that ensure accuracy inthe dosing of materials. According to

Marcelo Zubaran, applicationengineer and expert in productsfrom Ciber EquipamentosRodoviários, a company from theWirtgen group, “technologiescurrently applied in continuousplants, such as pick-up systems toread the real speed of the dosingbelts and digital data transmissionsystems, ensure accuracy in thedosing of aggregates. Since incontinuous flow plants the dosage ofthe asphalt depends on the realweight of the aggregates,guaranteeing the accuracy of theaggregates dosage ensures accuracyin the asphalt dosage.” However,external factors beyond the controlof the equipment, such as correctmeasurement of the aggregates orcontamination between silos, canlead to dosing errors. According toMarcelo Zubaran, “if the plantregularly receives information onthe humidity of the aggregates andif aggregates are not contaminatedbetween silos, the mix will come outperfect, since the plant will certainlyhave done its part.”

Fuel, especially for dryingaggregates, has a major impact onproduction costs. New technologiesapplied in the iNOVA 2000 plantmodel from Ciber, for example,ensure perfect heat exchangebetween the aggregates andcombustion gases, which can reducefuel consumption by up to one litreper ton produced. �

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Africa’s highways upgrade is driving demand for innovative reclaimed asphaltingtechnology and advanced construction equipment, Martin Clark reports.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com62

Africa’s growth continues tofuel demand for more andbetter roads. This brings with

it improved asphalt andconstruction technologies, as well aswaste management and otherrelated building services.

And leading internationalconstruction equipment firms havebecome major players in this vastinfrastructure upgrade.

Germany’s Wirtgen, for instance,has been a partner on many of thecontinent’s most prominent highwayconstruction projects. That includesthe use of innovative cold recyclingtechnologies for reclaimed asphalton a high profile stretch of road inCape Town, South Africa’s tourismhotspot. It is a solution that bodeswell for further application in thisarea and beyond.

Most recently, Wirtgen providedsupport for what is now the longestuninterrupted concrete roadway inNigeria, extending over 24km, toconnect the towns of Itori und Ibesein the state of Ogun.

The contractor AG-DangoteConstruction Company Limited – ajoint venture between Brazilian firmAndrade Gutierrez Company and thelocal Dangote Group – made use ofWirtgen’s SP 500 slipform paver forthe project.

Processing powerThe Wirtgen SP 500 machinery canpave concrete pavements in widthsof up to 6.0m and thicknesses of upto 400m as standard.

Before the slipform paver wasable to begin work in the town ofItori, however, the substrate had tobe prepared.

The construction joint ventureused compacted laterite and a 20cmlayer of crushed rock.

“The SP 500 then paved theconcrete quickly and cost

efficiently,” said Ashif Juma,managing director of AG-DangoteConstruction. “At the same time, italso helps us ensure our productionquality meets the specifications forsurface evenness.”

The SP 500 laid down the new7.50m-wide and 20cm-thickroadway in two separate passes.

To continuously provide theconcrete paver with sufficientmaterial, a steady convoy of up to15 concrete-mixing trucks drove tothe job site, depositing their loadsdirectly in front of the machine.

Before concrete can be paved,however, it must first be produced.The production chain starts withlimestone mining, one of the rawmaterials used in cement, which inturn forms the basis of concrete.

The Dangote Group extractslimestone from its open-cast mine inIbese, where the Dangote CementCompany already operates 14Wirtgen type 2500 SM surfaceminers.

During the highway constructionproject, the Wirtgen slipform paver

processed more than 35,000 cu m ofconcrete.

Reclaimed asphaltIn its latest South African project,Wirtgen played an equally importantrole, this time with its use of coldrecycling technologies.

The road scheme involvedwidening Camps Bay Drive, a majorscenic route within Cape Town,which provides access from the cityto Camps Bay and Hout Bay.

Local officials wanted the roadwidened to accommodate highervolumes of tourists and bus traffic,but were keen to minimise anyimpact on motorists.

Wirtgen’s involvement meantutilising the large volumes ofreclaimed asphalt stockpiled fromnumerous maintenance worksundertaken around Cape Town.

In the past, this has generallybeen re-used for hard stand areas orshoulder construction, but became abase layer on Camps Bay Drive –using 100 per cent of reclaimedasphalt – as a foamed Bitumen

Stabilise Base (BSM).In order to ensure uniformity and

a high quality mix, a static mobilemixing plant was specified for theproduction of the BSM.

Power Construction wasappointed to carry out theconstruction of the works withMilling Techniks carrying out theproduction of the BSM using itsWirtgen KMA 200 mobile coldrecycling mixing unit.

Cold recycling During the project, approximately8,150 tons of reclaimed asphalt wasprocessed using 165 tons of bitumenand 78 tons of cement.

Since then, the reclaimed asphaltmaterial has since performed wellunder early trafficking.

According to Wirtgen, using thereclaimed asphalt within thepavement structure provides a muchmore cost-effective and sustainablesolution for the future, especiallyconsidering depleting aggregateresources.

There is a large cost saving whenusing the 100 per cent reclaimedasphalt, it says, which amounted toapproximately 2.95 per cu m. Thiscost only includes the material costsaving and not additional trafficaccommodation and time costsavings.

It says costs could be furtherreduced by producing the materialcloser to the site, among othermeasures.

Improving project economics isalways fundamental to any highwaysdevelopment, while the focus onsustainability, reusability andrecycling is another important driver.

In that sense, Africa’s quest forsuch innovative techniques,solutions and the high techmachinery to make it happen, hasonly just begun. �

Reclaiming the future

CONSTRUCTION | ROADS

Cold recycling technologies for reclaimed asphalt were used along Camps Bay Drive.

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The Wirtgen Group South Africawill use the upcoming baumaConexpo Africa 2018 to

showcase its innovative solutions forroad construction and rehabilitationas well as for mining and mineralprocessing from across its group ofcompanies, comprising Wirtgen,Vögele, Hamm, Kleemann,Benninghoven and Ciber. Having exhibited at the two previouseditions of the show in 2013 and2015, The Wirtgen Group SouthAfrica rates bauma Conexpo Africaas a great platform to showcase itslatest technologies.Waylon Kukard, sales manager atThe Wirtgen Group South Africa,said, “The Wirtgen Group is themarket leader in our industry andwe regard Bauma as an important

platform to showcase our classleading technologies to ourcustomers and to live our ‘close toour customers’ motto.”

“We will showcase all our brands,namely Wirtgen, Vögele, Hamm,Kleemann, Benninghoven and

Ciber,” said Kukard, adding that therange of products from thesecompanies are relevant to the localmarket. With their leadingtechnological features, the productswill help local customers maximiseproductivity and execute top quality

jobs. “Bringing products andtechnologies to the local marketthat have been successfully appliedinternationally provides the localindustry with an opportunity toidentify projects that can benefitfrom the international experience,”he said. But Kukard noted thecurrent challenging operatingconditions in the local market.

“The sector is currently underpressure and declining with no realgrowth potential in sight,” he said,stressing that it is during such timesthat industry should be prepared toengage with original equipmentmanufacturers (OEMs) on a consultativebasis to see how best to apply existingand new technologies developed by OEMs to keep operational andcapital costs down. �

The Wirtgen Group SA’s focus is sustainability and recycling of natural resources.which has been the foundation of its product development over the years.

www.africanreview.com 63MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

Wirtgen SA to showcase brands at bauma CONEXPO

CONSTRUCTION | SOLUTIONS

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BRIEFS

GMSG announces new chair

South Africa’s Mineral Resources Minister, Mosenbenzi Joseph Zwane opened Mining Indaba 2018 on5 February, asserting that the country “remained a critical investment destination”.

Thousands of delegates, representing 2,100 companies, gathered for what was the biggest MiningIndaba show to date to take advantage of huge investment opportunities in Africa.

Opening the show on 5 February, minister Zwane urged investors to work with the government toturn policy directives into “mutually beneficial programmes” with no mention of the third version ofthe Mining Charter.

Instead, he spoke about prices for most metals increasing year on year in 2017, including zinc by about 40 per cent, copper and iron ore by 20 per cent and how the recovery was expected tocontinue in the short to medium term, supporting commodity prices and demand.

He said, “We can therefore confidently assert that the spring in mining is indeed blossoming into summer.”

Growth in the mining sector grew at 8.2 per cent and 6.6 per cent in the second and third quartersof 2017, and 5.2 per cent year on year. The mining industry was responsible for at least 20 per cent ofthe growth in this period, with the greatest contributors to this growth being metals, such as copper,iron ore and PGMs.

As host of more than 80 per cent of global reserves, Minister Zwane said South Africa had taken acompetitive sustainable and transformed mining industry lead in research and development fordownstream beneficiation of PGMs, principally through the Hydrogen South Africa (HySA) flagshipproject, which is focused on developingdownstream beneficiation of platinumthrough its use in hydrogen powered fuel cells.

“We stand ready to partner with investorsin this and other priority value chainsincluding titanium, iron ore and jewellery,”he asserted.

“We have US$18.18bn of investments inthe project pipeline, which includes PGMs,industrial minerals, energy and non-ferrousmetals, demonstrating that SA remains acritical investment destination.”

Zimbabwe’s mineral resources are under-explored and there are vastopportunities for investors to explore, saidWinston Chitando, minister of mines andmining development in Zimbabwe, at theMining in Zimbabwe Dialogue in Cape Townon 6 February.

According to minister Chitando, there aremultiple opportunities that cabinet wouldlike to see investors take advantage of. He emphasised two issues that will helpstimulate the mining industry, being theindigenisation threshold that is now in placefor only diamonds and platinum andgovernment’s endeavour to uphold policyclarity and consistency. There are threeexclusive prospecting orders in Zimbabweand he invited more partners to unearthmore of what is in the country.

“Opportunities exist among others inasbestos, coal, iron-ore, platinum, lithiumand nickel,” he added.

Victor Kgomoeswana, author of ‘Africa isOpen for Business,’ who acted as moderatorfor the event, commented that it is the workethic of Zimbabweans and resourcefulness,which should inspire investors to have apresence in the country.

Ashruf Kaka, national project director ofAfrican Chrome Fields (ACF) and CEO of theMoti Group, explained that the Moti Groupinvested in Zimbabwe in 2014, when it wasconsidered unwise to do so. However, according to Kaka, the companyhas immensely benefited by doing businessin the country.

ACF commissioned German engineeredchrome ore processing wash plants andsupport infrastructure to the value ofUS$220mn which is expected to produce60,000 tonnes of chromite per month.As CSI is a cornerstone of business in Africa,ACF has prioritised CSI in line withZimbabwe’s sustainable development policy.

“South Africa remains critical investment destination”

ZIMBABWE IS OPEN FORBUSINESS

In the three years since Weir Minerals Africa acquired the Trio range of crushing and screeningequipment, a strong network of skills and aftermarket services has been built across Africa tosupport this quality brand.

According to Weir Minerals Africa Process Director JD Singleton, the support services are now inplace in the organisation’s 18 service centres across the continent, as well as a Trio specificstockholding worth almost R100mn.

“This investment in the region is testament to Weir Mineral’s commitment to the Trio brand, andto our customers in operations large and small,” said Singleton. “Perhaps the most exciting aspectof our Trio journey to date is the strong local skills base we have developed, with the expertise in ourcomminution team amounting to 100 years of experience in the sector combined.”

TRIO CRUSHERS AND SCREENS ON A ROLL

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The SAGwise process control system reducesenergy consumption by six per cent.

Ash has 20 years of experience in themining and manufacturing sectors.

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FLSmidth launches a sensory and process optimisationsystem designed to optimise the use of the three mainconsumables in SAG milling: power, media and liners.The SAGwise™ total process control system reducesenergy consumption by up to six per cent. This is asignificant reduction considering that, by far, mills aretypically the single largest consumer of power within aprocessing plant. Other benefits include up to 45 percent reduction of ball-on-liner impacts

FLSmidth launches process system Barrick Gold’s chief innovation officer, Michelle

Ash, said she was honoured to be appointed asthe new chair of the Global Mining Standardsand Guidelines Group (GMSG).For the past two years, Ash has served on theGMSG Leadership Council, volunteering her timeand expertise to shape policies that will affectthe future of mining.Ash said, “The success of the mining industry isdependent on collaboration and innovation.”

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Sheila Kama, lead miningspecialist, energy andextractive industries, global

practice World Bank led a discussionwith Bruce Cleaver, CEO from DeBeers and HE Sadique Kebonang,minister of minerals resources,green tech and energy sector atMining Indaba in Cape Town, lastmonth, on ‘Creating a stableeconomically viable future for thediamond industry in Africa’.

Sheila Kama: How do you see the Kimberley Processcontribution to responsiblesourcing of gem diamonds?HE Sadique Kebonang, minister ofminerals: I think it’s safe to saythrough the Kimberley Process wehave seen the elimination of illicitdiamond trading. As we stand, 99per cent of the diamond that hasbeen traded is free from illicittrading and we think the KimberleyProcess (a government-ledcertification scheme which unites

administrations, civil societies, andindustry in reducing the flow ofconflict diamonds) has helped inthis process and continues to help. Itis our view that once we share thesame objectives, we will able toachieve much more.

Sheila Kama: What does the roleof private corporations mean inimproving the Kimberley Processand something about nationstates are not able to address?Bruce Cleaver: Firstly, just to add towhat the minister said, we areenthusiastic supporters of theKimberley Process. We have beeninvolved with it in the tripartite way.Governments, industry and NGOshave been involved from the very

beginning and it has evolved andserved its purpose in regard to thestatistic that the ministermentioned. For us though, we thinkthat industry should go beyond theKimberley Process, bearing in mindthe consensus nature of theKimberley Process.

In the industry and in De Beers,we’ve focused since the launch ofthe Kimberley Process on how wetake on the Kimberley Process andmake it even better. We are veryproud of a set of standards calledBest Practice Principles, which arestandards which don’t just requirethe people upstream on the miningside but also our customers in themiddle and downstream end.

All our major contractors sign up

and agree with ethical standardsthat cover not just the KimberleyProcess but also the human rights,labour, environment and ethicalbusiness practices. We have madeour customers and their customersto comply with this. We haveimproved the lives of 350,000workers in the diamond industry inthe whole value chain since thebeginning of the Kimberley Process.We also have seen other industrybodies taking something of theKimberley Process and expanding itand covering more emerging issues.

Sheila Kama: Botswana is one of ahandful of countries that theWorld Bank classifies as a middle-income country. What doessustainable mining mean for yourcountry’s economy?HE Sadique Kebonang, minister ofminerals: For us, sustainabledevelopment means that we have totake into account the interest of thecurrent generation with the interest

We have improved the lives of 350,000workers in the diamond industry”BRUCE CLEAVER, CEO OF DE BEERS

De Beers has invested in technology todetect on a 100 per cent basis whether a

diamond is natural or synthetic.

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Bruce Cleaver, CEO of De Beers and HE Sadique Kebonang, minister of mineral resources speak about how theirpartnership has contributed to Botswana becoming one of the fastest economies in the world.

De Beers and Botswana’s diamond affair

MINING | DIAMONDS

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MINING | DIAMONDS

of the future generation in order tocome up with a balance. Therefore,whatever we do, we have to makesure that is sustainable. It is meantnot only for now and to take intoaccount tomorrow. It means safemining standards.We have to make sure that we use

the funding, the money from theendowment revenues, for the futureand invest in development. Thatmeans we will still have moneywhen mining is finished and wehave other resources, which we havebeen able to get thanks to thesustainable mining activities.

Sheila Kama: Are man-madesubstances a threat to yourindustry? Can we presume thatsomewhere in the future thatdiamonds might be substitutedfor other substances?Bruce Cleaver: It is possible tomanufacture synthetic diamonds ina laboratory which are at least tothe naked eye the same as naturaldiamonds despite being verydifferent. Firstly, I think that it isimportant to state that this issue ofsynthetics is not new. It’s beenaround in the industry for 10-15years. There are two types ofsynthetic diamonds. The first one iscalled undisclosed where peoplemanufacture and try distribute thediamonds without disclosing it.At De Beers, we have invested

strongly in technology which hasallowed us to continue to detect ona 100 per cent basis a syntheticdiamond to a natural one, so I don’tthink that there is any concernthere. Another part of the syntheticquestion that you are asking is thesale of synthetics, which is disclosedand we don’t think there is an issuewith people selling disclosedsynthetics. For us though,ultimately, there is a big differencebetween a synthetic and naturaldiamond. They don’t occupy andwill not occupy in the future thesame space in the consumer’s mind.The natural diamond has a

tremendous and emotional value. Itis one of those really precious thingswhich is given to celebrate life’sgreat moments; an engagement, a

partnership, a birth of a child, ananniversary, a great promotion etc.It is so powerful because it is soemotional and it is so emotionalbecause it is real and rare becausethey are difficult to find.The other side to that, is the

synthetic issue, effectively you canmanufacture a synthetic over sixweeks. We think that consumers willfind a place for synthetics which willbe fashion jewellery. They aresomething which is fun andfashionable but something which isnot at all the same as the natural.The reason for that is because it wasmade in six weeks. It can’t be thesame as a natural diamond, which isso rare and was made by the miracleof nature between one and fourbillion years ago.

Sheila Kama: Some people haveargued, however thatenvironmentally, synthetics maywell be a better alternative tonatural diamonds – what is DeBeers’ response to this?Bruce Cleaver: You need to look atthe unbelievably good thatdiamonds have done, particularly inAfrica. If you look at the position ofBotswana economically in 1966when independence was gained andif you compare that with thecountry’s position now, it is thefastest growing country. Its

compounded annual GDP growthrate between 1966 and 2014 was thefastest growth of any country in theworld. That is testament to the goodthat can be done by mining aresource, but by doing it in aresponsible way, with thegovernment leading the way. At thetime of independence, Botswanahad 6km of tarred roads, now it has6,000km. These are all the amazingthings that diamonds have beenable to do for a country.

Sheila Kama: Can you explain why your partner countries;Botswana, South Africa, Namibia,struggle so much to achievebeneficiation of diamonds?Bruce Cleaver: I think all producergovernments have a completelylegitimate interest and we supportthis interest, in maximising thevalue of the revenue of a mineralfrom an extractive industry where itis a finite commodity, or in the caseof diamonds – a finite luxuryproduct. We totally support theprinciple that as much economicvalue should be captured in thecountry. We have been at theforefront of working with ourproducer partner governments increating a sustainable as possiblelocal beneficiation industry.It is an industry where in the

country that the rough diamonds

can be cut and polished and turnedinto polished diamonds, areultimately sold in the internationalmarkets. It is very important that allthe local beneficiation that we tryto support is sustainable andcreates long-term sustainable jobs.India is the biggest country in theworld in terms of cutting andpolishing of diamonds, ‘thebeneficiation of diamonds’. Incertain respects, it is difficult forcutting and polishing businesses inproducer countries to competeeconomically with India.The cost of labour is highly-

flexible and specialised, whichmeans generally speaking that verysmall diamonds are not alwayseconomic to cut and polish in aproducer country. But our policywhen working with partnergovernments is to ensure alldiamonds mined in a country thatthey are economically cut andpolishable in that country arealways offered for sale to be cut andpolished in that country. It isimportant for us to createsustainable beneficiation industryand between the three countries weare heavily invested in southernAfrica. We are very proud thatbetween them there are 25 cuttingand polishing factories.

Sheila Kama: What has made thispartnership more successful thanmost? And how do you see itprogressing in the future?HE Sadique Kebonang, minister ofminerals: The relationship with DeBeers has been mutually beneficialin a number of ways. WithoutBotswana’s production, De Beers’global output would be less than 20per cent. Equally our sales accountfor 80 per cent of Botswana’s exportneeds. It’s the case that we needeach other. We’ve had a relationshipthat has evolved over the yearsbased on our own strategic needs.We’ve a joint company, Debswana,where initially the government held25 per cent. We have now moved to50 per cent with De Beers in thatcompany. We also own 15 per centof De Beers Group and so that ishow the relationship has worked. �

De Beers is proud to have 25 cutting and polishing factories in Botswana, SouthAfrica and Namibia.

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The day starts very early forquarry workers. The workingcycle is adapted to the length

of the day, in order to make themost of daylight hours. Perfectharmony exists between man andnature, made possible thanks to thenatural resources which areextracted every day. But, nothing lasts forever, and

even in quarries, resources arelimited and destined to run out atsome point in the future. For thisreason, it is always necessary to lookfor new ways to profitably re-use theextracted material, even which, untilrecently, was considered as waste.With MB Crusher solutions, allmaterials can become sources ofimmediate income.Characterised by the wide area

they cover and the considerablevariations in height, quarries put thetraditional fleet of machines used

on the site through their paces. Therange of MB Crusher brand productsprovides a practical solution to theneed of tough yet agile instruments,capable of reaching areas whereonly excavators can move.In order to improve the synergy

with the traditional equipment usedin quarries, such as fixed andmobile crushers and screeners, MBCrusher has developed a range ofcrusher and screening bucketsspecially studied for extraction sites.Made entirely out of Hardox®, MBCrusher machines are available invarious models and sizes according

to the excavator on which they areto be fitted. MB Crusher alsoincludes the largest crusher andscreening buckets in the world: theBF150.10, which can be fitted toexcavators starting from 70 tons,and the MB-S23, which has a loadcapacity of 4.3cu m.MB crusher and screening buckets

process all extracted material torender it re-usable directly onsite.Waste materials, which werepreviously destined solely fordisposal, with MB can be processedin calibrated batches, and re-sold orre-used onsite, thus leaving the

mineral balance of the quarryunaltered.The range of MB crusher and

screening buckets dedicated toquarries, is suitable for operationsin steep and uneven areas,characterised by substantial changesin temperature. It requires simpleand rapid maintenance, which canbe carried out directly by theoperators onsite.Increasingly, important

contractors are deciding to add MBcrusher and screening buckets totheir fleet of machines because oftheir flexibility and innovativeabilities to carry out specificoperations in restricted spaces,which are difficult to access withlarge mobile plants. �

From 13 to 16 March, visit MB

Crusher at Bauma Conexpo Africa –

booth E39 – Hall 6.

The range of MB Crusher products provides a practical solution to carrying out specific operationsin restricted areas, which are difficult to access with large mobile plants.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com70

MB Crusher: Precious resource for mines

COMMERCIAL FEATURE

The range of MB crusher and screeningbuckets is suitable for operations in steepand uneven areas ”

The BF150.10 can be fitted toexcavators, starting from 70 tons.

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Zest WEG Group has been chosen as the leading supplier in the Gamsberg project – South Africa’s largestcurrent greenfield mining operation.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com72

At Vedanta Resources’Gamsberg mine in theNorthern Cape, Zest WEG

Group is working closely with leadcontractor ELB EngineeringServices as a preferred supplier tostandardise on its range oftransformers and motors across anumber of on-site applications.The Gamsberg project is South

Africa’s largest current greenfieldmining project, and will exploitone of the world’s largest zincdeposits. It is being developed at acapital cost of US$400mn and isexpected to produce 250,000tonnes a year of zinc metal inconcentrate.“This is a very exciting project

for South Africa, especially as wehaven’t seen a new mine beingdeveloped in the country for manyyears,” said Dr Stephen Meijers,chief executive at ELB EngineeringServices. “Vedanta Resources has

shown real intent in terms ofinvestment in South Africa; notonly in this project but in others,and we are proud to be buildingGamsberg.”

ELB Engineering Services’ firstpackage of work was the provisionof water from the Orange River tothe process plant, through anupgraded pump station and apipeline of about 40 km. Thesecond package is the supply ofpower from the existing Eskom

switching yard via overhead linesto the mine, and the third is theprocess plant itself covering allaspects from run-of-mine tipthrough to final product,including process dams andbalance of plant.“First product is expected

through the plant by the middleof 2018, with the civil works beinglargely completed by the end ofthe second quarter of 2017,” saidDr Meijers. “Structural and

mechanical construction on theplant is now starting to becomethe focus of work, and the pacewill continue to be intense untilmiddle of 2018.”Extreme temperatures on site –

down to minus 10ºC at night inwinter and up to between 45 and 50ºC in summer during the day –have affected the design and theconstruction methodology, hesaid. This has meant makingoptimal use of the cooler hours insummer, even pre-manufacturingas much as possible at nightbefore placing during daylighthours.Dr Meijers is a strong believer

in partnerships, with much of theproject technology being appliedthrough exclusive partnershipswith preferred suppliers.“We’ve worked with Zest WEG

Group for many years, andappreciate their professionalism,

World-class zinc project gets underway

MINING | REPORT

We’ve worked with Zest WEG Group for many years and appreciate their professionalism ”DR STEPHEN MEIJERS, CHIEF EXECUTIVE AT ELBENGINEERING SERVICES

Early stages and overview of Vedanta'sGamsberg zinc project in the Northern Cape.

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quality of service and reliablescheduling,” he said. “We havetherefore placed a number of thecontracts for this important andfast track venture through ZestWEG Group companies.”

As a group of specialistelectrical companies, Zest WEGGroup’s scope of supply covers twomain spheres, the water-relatedpackage which focuses on theupgrading of the municipal supplystation providing water to theGamsberg site, and the packagefor the mine’s zinc concentrationplant and related processes.

In this process, Zest WEG Groupsupplied a number of non-standardproducts, providing the mechanicaland design engineering necessary toensure that the non-standardspecifications could be met,including the redundancyrequirements to ensure optimalplant uptime.

“The Gamsberg plant is ashowcase for WEG motors andincludes four different MV motorranges that were fit-for-purpose intheir different applications,” saidKirk Moss, manager, mediumvoltage business at Zest WEGGroup company Shaw Controls.“These included our new W50 line,the HGF line, large slip-ringmotors from our M line, and ourW22 line of low voltage IE3motors; meeting the range ofrequirements and demonstratedZest WEG Group’s versatility interms of the multiple MV and LVmotor offering.”

Energy efficiency is a major driverin the project design, with highefficiency W22 WEG IE3 motorsbeing specified across the site. Tostreamline and facilitate theimplementation of this focus, ZestWEG Group was tasked by ELBEngineering Services to coordinatewith all the original equipmentmanufacturers that would usemotors to drive their equipment.This is to ensure that the principleof energy efficiency is applied acrossall aspects of the project scope.

“Importantly, we are supplyingall the LV motors for the plant,ensuring the project will save

considerably on its energy cost bycomplying with the IE3 energyefficiency standard,” said Moss.“These motors are also IP66 ratedwith Class H insulation, whichenhances the IE3 specification byproviding higher ingressprotection and accommodating ahigher temperature rise.”

According to Shaw Controlsbusiness development managerTyrone Willemse, the MV Millpackage being supplied for theplant comprise two large 6,5 MWWEG motors – MAF 11 kV slip ringunits –specified for the ball andsemi-autogenous (SAG) mills.

“The jaw crushers will be fittedwith proven, robust 11 kV 400 kWmotors from WEG’s HGF line,” saidWillemse. “We were also requestedto supply the distributiontransformers on the plant.

Zest WEG Group’s contribution tothe upgrading of the water supplyfacility involved the provision ofeight 3,3 kV 550 kW medium voltage(MV) motors as well as its locallydesigned and manufacturedtransformers to provide power tothe pump stations.

“This included two 2,5 MVAtransformers (reducing 11 kVdown to 3,3 kV), as well as four315 KVA (3,3 kV down to 400 V)units,” said Willemse. “Once again,these were not standardtransformer designs but wereprepared specifically to suit thespecifications of the client.”

The package also includes thenew WEG W50 motor, whichfeatures a compact size anddesign; through the application ofthe latest computational analysistechniques, the scale and thecooling efficiency have beenimproved – delivering optimisedairflow that enhances the unit’sexpected lifespan.

“This means that the performanceand temperature rise of thesemotors is not compromised in anyway by its smaller dimensions,” saidMoss.

Connected to these motors areWEG MVW01 3,3 kV variable speeddrives (VSDs), further enhancingenergy efficiencies. These are also

compact – just 2,315 mm high,2,600 mm wide and 980 mm deepincluding the integral phase-shifttransformer – together helpingreduce the footprint of thesubstation.

The Variable Speed Drives (VSDs)also boast a low component count –imperative in terms of reliability –of just three power arms that can bechanged in two or three minutes,allowing for quick maintenance andlow downtime in the case ofreplacement.

“Helping to meet the short lead-times demanded in thisproject, Zest WEG Group was ableto leverage the global WEG group’smultiple manufacturing facilitiesaround the world, giving usflexibility in terms of where webuild and how quickly we cansource product,” said Moss.

Willemse added that animportant aspect of the group’sadded value has been its five-yearguarantee covering the hundredsof LV motors on the project. �

www.africanreview.com 73MARCH 2018 | AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY

The Gamsberg plant is a showcase for WEG motors ”KIRK MOSS, MANAGER, MEDIUM VOLTAGE BUSINESS ATZEST WEG GROUP

REPORT | MINING

AnBao QinHuangDao International Corp. ........................................24Astra Veicoli Industriali S.p.A. - Iveco Group ....................................67Balkrishna Industries Ltd ........................................................................19Blumaq S.A. ..................................................................................................25Caterpillar Inc - Energy ............................................................................33Caterpillar SARL ..........................................................................................47CIBER Equipamentos Rodoviários Ltda..............................................43CIFA S.p.A. ........................................................................................................7Clarke Energy Ltd........................................................................................39Deep Sea Electronics PLC ........................................................................11Diehl Metering S.A.S..................................................................................12East Group Co., Ltd.....................................................................................36Emirates..........................................................................................................76EnergyNet Ltd (Africa Energy Forum 2018)......................................13Expo Group (Build Expo Africa 2018)..................................................17Gustav Bertram GmbH ............................................................................32Hawkeye Pedershaab................................................................................56Hawkeye Pedershaab................................................................................57Inmesol SL ....................................................................................................53Iveco SPA........................................................................................................27Iveco SPA........................................................................................................29Jessop & Associates (Pty) Ltd ................................................................49Komatsu ........................................................................................................61Liugong Dressta Machinery sp. z o.o. ....................................................2Marini S.p.A. - Fayat Group......................................................................41Marini-Ermont..............................................................................................63Metalgalante S.p.A. ....................................................................................45Ortea S.p.A.....................................................................................................21Pan Mixers South Africa (Pty) Ltd ........................................................51Panafrican Group........................................................................................65Promosalons (UK) Ltd ..............................................................................23Quanzhou City Sanlian Machinery Manufacture Co. Ltd ............75Runh Power Corp. Ltd ..............................................................................37Societe Internationale des Moteurs Baudouin..................................9Spedag Interfreight Ltd............................................................................31Spintelligent, Clarion Events (African Utility Week) ......................15Volvo Construction Equipment AB ........................................................5Zest WEG Group Africa ............................................................................35

Advertiser’s Index

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People living in the slums of Luanda have been given a new lease of life thanks to a new innovation centre.

AFRICAN REVIEW OF BUSINESS AND TECHNOLOGY | MARCH 2018 www.africanreview.com74

Positioned in the heart of theslums of Cazenga, Luanda,there is a glimmer of hope for

the thousands of people living there.An old soap factory has been turnedinto an innovative creative space forpeople to transform their future.It is the brainchild of Jean-Claude

Bastos de Morais, the founder ofAfrican Innovation Foundation (AIF)and already the ripple effect of thefactory's role in the community ishaving an impact on people’s lives.He said, “I decided to take over

the old soap factory and transform itinto a creative space to fosterinnovation and entrepreneurship inthe centre of the slums in Luandabecause I believe the young peoplewho don’t have anything, are veryhungry to learn and to get on in life.Normally, people are very agnosticand are afraid of change and ofthings which have a directconnection to technology, but whatwe have seen at the hub is a viraleffect of people experiencingopportunities for themselves thatthey can do something and are nowtelling their neighbours about it. Wehad a young kid passing by, and hehas since learnt how to build adrum set. It is about doingsomething that helps them.”Around 200 people per day come

to the hub in Cazenga where 23,000people live per sq km. Since deMorais and his team have movedinto the area, they have cleared vastswathes of rubbish, which had beenresponsible for vermin and causingsickness. As a result, people havestarted to take pride in their area.He said, “I chose this spot onpurpose because it is at the centre

of a huge amount of people whocan come and talk about theproblems of the community and canfind a solution in the hub, such asrepairing solar panels. It is anexample of an innovation ecosystem.”The hub, which is run by 62

employees, has been split up intovarious spaces from manufacturing,arts and theatre to a co-working areafor start-up businesses and small-scale entrepreneurs, who cannotregister themselves as businessesbecause of living in the slums. Theyhave access to office facilities, suchas a desk and a computer.“In the manufacturing space,

people make textiles bags andrecycle stuff,” continued de Morais.“They transform materials such asplastic, iron, aluminium, and wood,into something, which is sellableand has a market. Out of thealuminium, they have created chess figures that are sold, and theyhave created a chess club. They have

learnt how to smelt the aluminiumby creating their own smelter and byburning cans on site. People havebuilt their own furniture and havelearnt how to build and dismantle a3D printer within three weeks. “I believe innovation is the

solution. If you take a macro-viewthat today you have 1.1 billionpeople, 60 per cent of which are 19and below, and then look at thebirth rate of the whole continent in30 years from now, 2.5 billionpeople, 70 to 75 per cent peoplebeing 19 and below, it can turn intoa very beautiful story. If you createthis innovation spirit it changes thementality of the people and I haveseen over the last seven yearsthrough the AIF how it has changed

African countries for the better.”The AIF supports African

innovators and focuses on fivemain areas, which areManufacturing and ServiceIndustry, Agriculture/Agri-Business,Health and Wellbeing, InformationCommunication Technologies(ICTS), and Environment, Energyand Water.de Morais added, “Heads of

states invite me to make sure theIPA is celebrated in their countrybecause it has such a big positiveimpact for the population. If wecan implant this same spirit intotwo million young children,imagine what can happen in thefuture, that they too can dream tobecome an innovator.” �

Changing the future through the world of innovation

INTERVIEW

If you create this innovation spirit itchanges the mentality of the people ”JEAN-CLAUDE BASTOS DE MORAIS

Lighting up the lives ofpeople in Luanda.

Jean-Claude Bastos de Morais, who is Swiss and Angolan, is the founderand chairman of investment firm, Quantum Global as well as the founderof the African Innovation Foundation.The purpose of the African Innovation Foundation is to increase the

prosperity of Africans by catalysing the innovation spirit in Africa throughthe areas of innovation and technology, governance and compliance andsocial impact development. The IPA is part of the work of the foundationand recognises the achievements of innovators across Africa. It rewardsUS$150,000 to winners who deliver market-oriented solutions that boostthe social and economic development of a country.

JEAN-CLAUDE BASTOS DE MORAIS

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