African Review February 2014

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Europe €10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK £7, USA $12 February 2014 Mining: Dewatering for drilling at a Congolese mine P46 Power: Renewable energy projects across Africa P34 Making the most of Mining Indaba South Africa’s new air transport hub P51 P43 Technology: Easier trading for farmers with mobiles P30 www.africanreview.com Olusegun Olutoyin Aganga - Nigerian Minister of Trade, Industry and Investment P26

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Transcript of African Review February 2014

Page 1: African Review February 2014

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

February 2014

Mining:Dewatering for drilling at aCongolese mine P46

Power:Renewable energyprojects across Africa P34

Making the mostof Mining Indaba

South Africa’snew air transport hub

P51

P43

Technology:Easier trading for farmerswith mobiles P30

www.africanreview.com

African Review

of Business and TechnologyFebruary 2014

Volume 48 N

umber 1

ww

w.africanreview

.com

Olusegun OlutoyinAganga - NigerianMinister of Trade, Industry and Investment P26

ATR Feb 2014 Cover_Layout 1 20/01/2014 14:42 Page 1

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Page 3: African Review February 2014

Managing Editor: Andrew [email protected]

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

Publisher: Nick Fordham

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

ISSN: 0954 6782

Serving the world of business

UP FRONT

3

REGULARS

FEATURES20 Economy

The challenges facing Ghana’s textiles industry; the way forward for Ghana’s transportinfrastructure; Kenya’s fresh economic impetus; and Nigeria’s new economic potential

30 TechnologyMobile communications for farmers; and maintaining machines to increase operationallongevity

33 PowerThe increased use of renewable energy sources to support facilities and utilities

38 ConstructionEarthmoving equipment in East Africa; India’s unique contribution to African roadbuilding; andplans for the building of South Africa’s new aerotropolis

45 MiningAutomotive excellence to enhance logistics; Dewatering a Congolese mine; professionalservices from Britain; an innovative renewable energy installation in South Africa; and anoverview of Investing in African Mining Indaba

52 LogisticsHandling and loading equipment to move materials more productively

04 Agenda: Initiatives for industryand enterprises

14 Bulletin:New tech on show, inAfrica and for Africans

53 Solutions:Technologies designed toenhance ‘best practices’

Contents

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

February 2014

Mining:Dewatering for drilling at aCongolese mine P46

Power:Renewable energyprojects across Africa P34

Making the mostof Mining Indaba

South Africa’snew air transport hub

P51

P43

Technology:Easier trading for farmerswith mobiles P30

www.africanreview.com

Olusegun OlutoyinAganga - NigerianMinister of Trade, Industry and Investment P26

Editor’s Note

Cover picture: Jean-Baptiste DodaneInset, top: AureconInset, bottom: Stephen Williams

P24

P40

The pressures affecting the Ghanaian textiles industry, and its implications for the nation’seconomic growth, are assessed on pages 20 and 21. Measures taken to improve roads in

Accra, the Ghanaian capital, are detailed on page 24. There is a brief on the reinvigoration ofKenya’s economy on page 25. Olusegun Olutoyin Aganga, Nigeria’s minister of trade, industry andinvestment, spoke recently of his work to improve Nigeria’s economic potential - and his views arepublished on pages 26 and 28.Herein, there is an article on the use of mobile communications networks to improve agriculturalbusiness, on pages 30 and 31. This issue includes, also, guidance on efficient, non-intrusivecondition monitoring and machine maintenance on page 32. The ways in which solar energy ismeeting the continent’s various demands for power are detailed on pages 34 and 36. Following apreview of CONEXPO/CON-Agg on page 38, this issue also offers an assessment of India’scontribution to road-building on page 42. Plans for the construction of a new facility to serve airtravel and air freight, to and from South Africa, are analysed on pages 43 and 44. The dewateringof a Congolese mine before an intense drilling programme commences is presented on pages 46and 47. And a preview of the Investing in African Mining Indaba is offered on page 51.

Andrew Croft, Managing Editor

African Review of Business and Technology - February 2014

Audit Bureau ofCirculations -

Business Magazines

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Algeria’s national carrier Air Algerie hassigned deals worth US$760mn with US-based Boeing, European aerospaceconsortium Airbus and ATR, a French-Italianaircraft manufacturer, for the purchase of 14aircraft.The agreement includes the purchase ofeight Boeing 737-800 new generation planescapable of carrying 150 passengers each,three 250-seat Airbus A330-200 planes andthree ATR 72-600, a 70-seater short-haulregional aircraft.Mohamed Salah Boultif, CEO of Air Algerie,said, “The 737-800 continues to be thebackbone of Air Algerie’s fleet. So far, we are

pleased with these aircraft, and anticipatereceiving all eight of these new units beforethe end of 2016.”Boultif said that the aircraft — Airbus 330-200 passenger jets and Boeing 737-800 jets— would be delivered between nextSeptember and the end of 2016 inagreements that would be financed byAlgerian state banks.Boeing said in a statement that the deal foreight 737-800 aircraft was worth US$724mnat list prices when the order was finalised.Boultif added that the deal would help thecompany reinforce domestic andinternational route.

4

NEWS

Sustainable Energy Fund for Africa (SEFA)has approved a US$960,000 loan for the Jbel-Sendoug (Khalladi) Wind Project in northernMorocco in December 2013 to supportpreparation activities to bring the project tobankability. The wind energy project will bedeveloped near the Mediterranean coast,15km east of Tangiers. The project involvesthe development, financing, construction andoperation of a 120MW wind power facilityunder an independent power producersscheme authorised through a concessiongranted by the Ministry of Energy, Mines,Water and Environment. The project will seethe construction of a 23 km transmission lineand a sub-station to evacuate energygenerated by the facility into theinterconnected grid. When complete, theKhalladi wind energy project will increase the

provision of electricity where demand growthis strong.This will result in energy savings as theMoroccan population relies on their owngenerators at times of power outage. Thosesavings will contribute to increasing theirpurchasing power for other goods andservices and stimulate consumption andinvestment. Yet, another benefit of theproject is that it is expected to avoid theemission of approximately 175,000 tonnes ofCO2 equivalent per year.The electricity produced by the facility — anaverage of 340GWh per year — will be soldprimarily to industrial users as well as with theOffice national de l’électricité et de l’eaupotable (ONEE) buying any remainingbalance. Following the approval, AlexRugamba, director of the African

Development Bank’s energy, environmentand climate change department, said, “ForSEFA, this project is a double win as it involvesclean energy production that will, in turn,spur economic growth. When finished, theKhalladi Wind Energy project will providemore reliable power, fewer power outagesand greater scope for private sector growth inthe project region. This grant is evidence ofthe bank’s continued strong commitment torenewable energy investments in Morocco.”SEFA is stepping in to support the roll-out ofthe project and to assist in its financing. Thegrant will support the optimal structuring of amulti-power purchase agreement set-up withindustrial firms to ensure bankability. Morespecifically, the SEFA grant will finance a legaladvisor to UPC Morocco Wind Partners BV -the project sponsor, and advisor to lenders.

The governments of Egypt, Libya and Tunisiahave committed to develop renewable powerwithin their countries, with the aim of creatingan integrated energy mix to meet the growingdemand for electricity in the region, says arecently released report.The big challenge is pulling in the significantinvestment needed, as foreign investors arestill cautious in the aftermath of the 2011 ArabSpring protests. The stunted development ofthe sector’s infrastructure and ultimate deficitin power supply has been attributed, in themain, to the region’s political uprisings -although price subsidies, economic downturn,regulatory and technical inefficiencies havealso contributed to the status quo. Despite support from the European Union,efforts to get the Mediterranean Ringregional power grid have also not progressedas hoped. Morocco, Algeria, Tunisia, Libya andEgypt need to reform subsidies on fossil fuelsto ensure long-term sustainability.

Air Algerie flies with new Boeing aircraft

Air Algerie has purchased 14 Boeing aircraft

African Review of Business and Technology - February 2014

Agenda / North

SEFA nod for Morocco wind project

Region to tap renewableenergy

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Veolia Water Solutions &Technologies South Africa will

provide a containerised water treatmentplant – built into six 40-foot shippingcontainers – to the Kansanshi Copper Minenear Solwezi in Zambia. As part of a newcopper smelter project, the mine aims togrow its annual copper output from 340,000tonnes in 2013 to 400,000 tonnes by 2015.

Nigel Bester, project engineer at Veolia’sEngineered Systems & Services division,said, “As the world’s eighth largest coppermine, the new Kansanshi smelter has veryspecific requirements for boiler feed,process and drinking water.

“The result is a flagship water treatmentsolution that upgrades river water tomatch each requirement exactly, withguaranteed availability due to a dutystandby design on all process streams.”

Veolia will completely manufacture, testand certify the plants at its factory inSebenza, Gauteng, before they aretransported to site. The containerisedplants are designed to be linked up to oneanother on site, and will operate as asingle plant with multiple output streamsto produce a combined 42.5 cu m oftreated water per hour.

Bester added, “As part of the globalVeolia, we further have access to some ofthe best technologies, which means that,overall, we provide the entire, fullyengineered package that provides long-term benefits.”

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NEWS

Tanzania has received a loan of US$60mnfrom the World Bank to boost the businessand financial services sectors as well asenable foreign investors to buy land fordevelopment in the East African country.The Private Sector Competitiveness Project(PSCP) supports the Tanzanian government’sprogramme to develop the private sector byimproving legal certainty and lowering thecost of doing business across thecountry’seconomy.

Philippe Dongier, World Bank countrydirector for Tanzania, said, “During the pastdecade, Tanzania has experienced high ratesof economic growth, due to economicliberalisation, sound macroeconomic policies,and an expanding public sector. The PSCP’sfocus on securing land ownership andimproving access to finance will facilitateincreased flows of private investment into thecountry’s industries, light manufacturingfirms and farms, while boosting sharedgrowth and jobs and improving the quality oflife.”

The World Bank has predicted that theTanzanian economy will grow by aroundseven per cent over the next two years andthat inflation will stabilise at around five percent, largely due to falling food prices andtight monetary policies. It also pointed outthat even when agriculture productivity

increases, the poorest families tend to be leftbehind. “This underscores the importance ofhighly targeted safety net programmes tosupport the most vulnerable,” said Dongier.

The PSCP programme supports activitiesdesigned to improve land registration, landuse planning and administration reform aswell as regularise tenure rights. The originalPSCP was approved by the World Bank boardin December 2005.

Tanzania is also considering scaling up itsconditional cash transfer programme at a costof about US$250mn annually, governmentsources revealed.

China has provided Rwanda with solar kitsystems worth US$635,153 in a bid toincrease the country’s rural electrification.According to the Rwanda’s Ministry ofInfrastructure, the solar kit systems will beinstalled in the rural areas of the southern,northern and eastern provinces, that are notconnected to the national power grid. Theequipment received consist of solar modules,cabinets, batteries, switchboards, compactfluorescent Lamps and light wires. EmmaFrancoise Isumbingabo, State Minister in-

charge of energy and water, said, “The kits willboost rural electrification and ultimatelyimprove the well-being of the ruralpopulation.”

It is expected that at least 400 households,selected based on the five-year NationalElectrification Plan, will benefit from the project.Shen Yongxiang, Chinese ambassador toRwanda, said the support is in the framework of‘Eight New Measures to Strengthen China-AfricaCooperation’, under which China offered tosupport Rwanda with solar equipment.

Zambia’s copper mine toget water treament plant

The original PSCP was approved by the World Bankboard in December 2005

The containerised plants are designed to belinked up to one another on site, and will operateas a single plant with multiple output streams

African Review of Business and Technology - February 2014

Agenda / EastWorld Bank US$60 million loanboosts Tanzanian economy

China donates solar kits to Rwanda

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NEWS

Ensuring customers can conclude their transaction seamlessly, overmultiple channels, whether it be point of sale, kiosk, self-service

terminal, online or through a mobile device is now a requirement for aretailer who wants to hold on to repeat business and ensure incrementalrevenue growth.

How the customer engages with a retailer at the checkout is one ofthe key differentiators in a hotly contested retail space – especially ina downturn economy. Integrating multiple value-added services(VAS) through multiple customer contact channels has moved from atechnology challenge to an operations and marketing imperative.The sale and operation of financial services, gift cards, couponing andloyalty schemes has taken the retail domain into a new and complexspace in which retailers often do not have the required skills.

Ian Steyn, executive at Innervation VAS, said, “The user is notaware of the technical complexity, nor should they be. It’s all aboutthe end-user experience and ensuring customers have a greatexperience, no matter what their purchasing requirement. After all,the final experience of their interaction is the lasting image they willbe left with as they leave the store.”

Choosing the right technology partner means finding a companywho can ensure the correct level of focus and expertise on theproduct the retailer wants to offer as well as the seamless integrationof such a product.

Over the past year, Innervation has delivered more than 40integrations to retailer channel applications being used by a largenumber of retailers across South Africa, many of them counting as afirst-to-market offering.

A good example of a high profile Innervation integration is thelaunch of the iTunes card solution now available through Pick n Pay.

“When we were brought in to handle the iTunes integration, wewere able to take the existing Pick n Pay channel integrationframework and rapidly integrate the support for iTunes cards. Thisnot only dramatically reduced implementation time, but furtherenhanced the basket of products that is available through theInnervation value added services (VAS) platform. The aggregationcapabilities of the VAS platform and its unique integrationframework allow retailers to quickly take advantage of a range of giftcard products, via a single integration,” added Steyn.

Innervation’s ability to support the integration of innovativetechnology is further highlighted by the recent MPOS solution at anational retailer.

The solution was a first of its kind at a major retailer in South Africa.The integrated mobile point of sale solution was rolled out across a

range of group stores, featuring iPod touch equipped devices withscanners and key pads. The device itself features an iPod touch thatsits inside a VeriFone PAYware device, which provides a barcodescanner, magstripe and chip reader as well as a secure keypad on theunderside of the device

The device encrypts each transaction and integrates wirelessly withthe retailer’s system and the process for payment is the same as aperson purchasing goods from a standard Point of Sale, except thatstaff can now assist customers from anywhere in the store.

One of the key benefits of the solution includes queue reduction,freeing up space within the store.

The device can also be used by staff to check the price of items forcustomers and for stock taking. From the device, the paymenttransaction proceeds through the retailer’s system to Innervation andthen on to the acquiring bank.

The Zimbabwe Stock Exchange (ZSE) isin the process of developing an exchangefor the small to medium enterprises(SMEs), according to minister of financeand economic planning PatrickChinamasa.

Chinamana stated it is the government’sexpectation that the low-tier stock marketwill broaden participation of SMEs andother indigenous companies in themainstream economy.

According to a financial sector(Finscope, 2012), Zimbabwe's SMEscontribute more than 60 per cent to GDPand employ more than 5.8mn people.

“Therefore strategies that target thedevelopment of SMEs will provideimmense benefits to the country in termsof growth, employment generation andsupport to the fiscus through taxes, just tomention a few,” Chinamasa said.

He added that the flexibility of SMEsprovides backward and forward linkagesin the mainstream supply chain enablingthem to exploit niche markets.

Chinamasa said however that SMEsdevelopment in Zimbabwe are hamstrungby several challenges relating to workingcapital constraints, high cost of borrowingand business management skills which

undermine their graduation into sizeablecorporates. Chinamasa added thatgovernment's thrust in support of SMEsdevelopment will focus on access tocredit,technical and business managementtraining and management informationsystems.

Meanwhile, the Zimbabwe StockExchange has put in place a framework forthe establishment of an automatedtrading system to complete the proposedcentral securities depository. The platformis expected to be automated in Q2 2014.

Wallace Mawire

African Review of Business and Technology - February 2014

Agenda / SouthSeamless customer service incremental to company’s growth

SMEs to get own exchange in Zimbabwe

www.africanreview.com

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Upcoming unreserved public auctions in EuropeVisit www.rbbrochures.com to view all brochures online. Equipment is added daily, visit www.rbauction.com for up-to-date listings and auction dates.

www.rbauction.com | +31.765.242.600

7 / 15 – RENAULT KERAX 370.32 8x4 w/ BARYVAL 10M3 – MONCOFA, SPAIN4 / 24 – 2008 HYUNDAI HD270 6x4 – MONCOFA, SPAIN

CATERPILLAR D5M – CAORSO, ITALY

CASE MAXXUM 5140 – MEPPEN, GERMANYFIAT 780DT – OCAÑA, SPAIN

2008 HITACHI ZX350LCN-3 – CAORSO, ITALY

2008 CATERPILLAR 330DL – CAORSO, ITALYFIAT-KOBELCO W230 – CAORSO, ITALY

Donington Park, UK – February 25

Moerdijk, Netherlands – Feb. 27 - Feb 28

Ocaña / Moncofa, Spain – March 11 & 12

Pan European Auction – March 13

Caorso, Italy – March 14

St Aubin Sur Gaillon, France – March 18

VANDEL 250C – OCAÑA, SPAIN ATLAS COPCO ROC D7-11 – OCAÑA, SPAIN

2007 CATERPILLAR 14H – MOERDIJK, NL

2008 COMACCHIO MC900GT – MOERDIJK, NL

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Page 10: African Review February 2014

Olusegun Awolowo, CEO of NigerianExport Promotion Council (NEPC),

and the CEO of the Nigerian Export-Import Bank (NEXIM) Roberts U Oryamet up recently in Abuja to discuss areasof possible collaboration and synergy.

Orya stated that upon his resumption asthe CEO of the bank, he discovered that thebank has completely moved away from itscore mandate and veered into lending toboth oil and gas resulting in a dismal creditperformance and loss of confidence. Thiswarranted him to seek the approval of thebank’s shareholders to initiate a corporatetransformation project that led to the re-definition of the bank’s mission, vision andstrategic objectives, with the intention ofchannelling its resources into thedevelopment of four sectors —manufacturing, agro-processing, solidminerals and services (MASS). The MASSsectors were deemed to have high amount ofemployment and foreign exchange earnings.

An outcome of the corporatetransformation was crafting of newstrategic objectives to enable the bankhave a clear market focus and become amajor contributor to non-oil exports. Oryatold Awolowo that the bank is alsodeveloping the ECOWAS and otherAfrican regional markets as the traditionalmarket for Nigerian exporters. The idea isprovide a strong platform for the exportersto venture into the more complex marketsof Asia and other developed economies inline with the strategy in other jurisdictions.

10

NEWS

German company Nicolas has deliveredMHD G2 SPE modular trailer to AddaxPetroleum in Nigeria.

With a zinc dust primer as a basis andcoated with polyurethane, and paintedusing environmentally compatible so-calledhigh-solid top coat in the customer´scompany colour, the vehicles are suitablyequipped to resist the adverse weatherconditions. With up to 46-tonnes axle loadand the ability to also accommodateextremely concentrated loads, the modularvehicle is predestined for use in thedemanding day-to-day operations in the oiland gas industry.

A tropical climate, average temperaturesaround 30°C, salty air, for the MHD G2 SPE,with 20 driven axle lines and complete withan electronic multi-mode steering system, italso has to combat the toughest operatingconditions.

Addax Petroleum will be using the newly-acquired vehicles mainly for loading offshorecomponents onto floating productionstorage and offloading units (FPSOs), whichare utilised in offshore activities for theextraction, storage and loading of crude oiland natural gas by means of one or moredrilling platforms. Addax Petroleum is part ofthe Sinopec Group, the largest oil refininggroup of companies in Asia, and operates

production facilities in Africa, Middle Eastand the North Sea.

Pierre Berret, area manager sales atNicolas, said, “We were able to deliver at veryshort notice, the vehicle precisely fulfilled allpayload requirements and the customer waswell convinced by the excellent quality ofworkmanship. The latest changes in theproduction process guarantee even higherreliability of our vehicles.”

The bogie of the new Nicolas MHD G2generation — available with mechanical orelectronic multi-mode steering — has beenspecially designed to carry extremelyconcentrated loads. For road transportation,the MHD G2 can be used as a trailer or semi-trailer combination as well as coupledside-by-side as a 3 or 4-file combination. TheMHD G2 has the lowest driving height onthe market when loaded.

Mobile anti-fraud and revenue protection specialist Revector has been selected by Glo MobileGhana to lead a campaign to detect and eliminate SIM box fraud on its network.

Akeem Kazeem, head of business at Glo Mobile Ghana, said, “Revector was the obviouschoice as a partner to identify and remove illegal SIM boxes from our network. The company’sexperience, expertise and consultancy are globally acknowledged. We are delighted that theengagement of Revector has started yielding immediate results. They have been identifyingnew SIM boxes every day as we work to remove this illegal activity.”

SIM box or GSM gateway fraud occurs when the cost paid to mobile operators to terminateinternational calls exceeds the cost of a local mobile to mobile call in a country. Fraudsters buymultiple SIM cards and sell the capacity to terminate calls on the open market. This leads to lostrevenues for mobile network operators.

Nigerian finance chiefsmeet on development

The MHD G2 SPE modular trailer

NEPC’s Olusegun Awolowo (left) with Nexim CEORoberts U Orya

African Review of Business and Technology - February 2014

Agenda / WestNicolas trailer can fight adverseweather conditions

Dealing with fraud for Glo Mobile

www.africanreview.com

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March2-3African High-Growth MarketsAddis Ababa, Ethiopiawww.cemea.economistconferences.com

3-5agrofood West AfricaAccra, Ghanawww.agrofood-westafrica.com

3-5plastprintpack West AfricaAccra, Ghanawww.ppp-westafrica.com

4-6Tyrexpo AfricaJohannesburg, South Africawww.eci-international.com

4-8CONEXPO-CON/AGGLas Vegas, USAwww.conexpoconagg.com

9-12MS & Africa Middle EastCairo, Egyptwww.msafrica.net

11-12Power & Electricity World AfricaJohannesburg, South Africawww.terrapinn.com

12-13Banking & Mobile Money WestAfricaLagos, Nigeriaaitecafrica.com

17-19Powergen AfricaCape Town, South Africawww.powergenafrica.com

18-19Africa Cementrade SummitLusaka, Zambiawww.cmtevents.com

18-19Cards & Payments AfricaJohannesburg, South Africawww.terrapinn.com

18-19Food & Technology AfricaJohannesburg, South Africawww.mmisouthafrica.co.za

18-19Securex West AfricaLagos, Nigeriawww.securexwestafrica.com

27-28Intermodal Africa NorthLagos, Nigeriawww.transportevents.com

31 Mar-11 AprWorld TelecommunicationDevelopment ConferenceSharm el-Sheikh, Egyptwww.itu.int

Events / 2014

Held 3-6 February at the Cape Town International Convention Centre inCape Town, South Africa, the 2014 Investing in African Mining Indaba isthe world’s largest gathering of mining’s most influential stakeholders anddecision-makers vested in African mining. 2013 was a record breakingyear, with more than 7,800 individuals representing more than 1,500international companies from 100 countries and approximately 45 Africanand non-African government delegations.This is where the mining world meets. Professionals including key mininganalysts, fund managers, investment specialists, and governments regardMining Indaba as a preferred venue for obtaining information about currenteconomic and mining developments from the world’s leading experts onAfrican mining.

Debating sustainable developmentSuccessful ways of integrating social responsibility and sustainability intothe corporate agenda are topics under discussion in the global miningindustry – so a particular highlight at Mining Indaba is the high-calibre,dedicated forum on sustainable development presented in collaborationwith the International Council on Mining & Metals (ICMM).“We anticipate robust and thought-provoking sessions as we have drawnspeakers from civil society and international financial organisations as well

as the mining industry,” said ICMM managing director Jonathan Moore.“We are delighted at the balance and integrity of the forum topics andhigh-level speakers thanks to the transparent process of their selectionthrough the advisory committee set up together with our forum partners,ICMM,” Moore added.Mining Indaba is also an opportunity for the industry to contribute positively,points out Moore. Over the past five years, Mining Indaba has generatedR336mn (US$31.35mn) for the local Cape economy and contributed tocreating more than 3,750 direct and indirect jobs.“The significance of a 20th Mining Indaba is a direct example of 20 yearsof post-apartheid in South Africa. Mining Indaba represents a benefit ofwhat a country can do when it tears down its walls and allows the worldto experience all the riches it has to its offer. In this spirit, we are focusingon giving back in 2014,” said Moore. The Mining Indaba Bursary Programmehas been increased from more than US$17,500 (its launch value in 2013)distributed to two students to more than US$27,000 supporting fourstudents in 2014. Second, a contribution of more than US$2,000 to a localCape Town education charity is providing underprivileged children withthe basic necessities to continue their studies.

www.miningindaba.com

African Review of Business and Technology - February 2014

Where Africa’s miners meet

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Bulletin/InvestmentEast African countries launch cross-border payments systemKenya, Uganda and Tanzania have

collaboratively launched an integrated

real-time cross-border payments system

for East Africa, aimed at removing

bottlenecks to business and bolstering

intra-regional trade; the Central Bank of

Kenya said the East African Payments

System (EAPS) would speed up the process

of commercial transactions in real time,

with Rwanda and Burundi also being

expected to join the programme, which

the Central Bank of Kenya said represented

a further step towards the creation of a

monetary union within the EAC trading

bloc.

AfDB commissions US$25mn fund for Africaninfrastructure projects The African Development Bank (AfDB)

has commissioned a US$25mn Pan-African

Infrastructure Development Fund (PAIDF

2), which will invest in power, transport,

water and sanitation, information and

communication technologies (ICT) and

healthcare infrastructure projects across

the continent; South Africa’s Harith

General Partners, whose portfolio

includes the Lake Turkana Wind Power

Project in Kenya and the Henri Konan

Bédié Toll Bridge in Abidjan, Côte d’Ivoire,

has been appointed as manager of the

fund.

Qatar to provide MoroccoUS$1.25bn financial aid The government of Qatar has signed an

agreement with Morocco to provide the

north African kingdom US$1.25bn worth of

aid, as a part of a five-year financial

assistance package; the deal, signed by

Morocco’s King Mohammed VI and the

Emir of Qatar, Sheikh Tamim Ben Hamad Al-

Thani, will be primarily spent on improving

infrastructure in order to strengthen the

country's economy and foster tourism,

while the Morocco government,

meanwhile, has announced its aimed to

reduce the country’s budget deficit to 4.9

per cent of the GDP next year, from 5.5 per

cent in 2013.

Africa Oilfield LogisticsLimited raises US$7.3mnBy placing 60mn new ordinary shares in

the company at 7.5 pence each with

existing and new institutional investors,

Africa Oilfield Logistics Ltd has raised

US$7.3mn; the funds raised will be used to

support Africa Oilfield’s development as it

continues to establish itself as a support

services and logistics provider servicing

the sub-Saharan Africa resource sector,

with its operations being structured

around six key, distinct and focussed

divisions to provide clients with a full

spectrum of products and services -

including remote workforce

accommodation, facilities management

and medical support.

Partnership prioritisesMozambican developmentsAbsa Bank Ltd and Sumitomo Mitsui

Banking Corporation are developing

further business collaboration; their latest

agreement signed in Maputo,

Mozambique, focuses on the development

of Mozambique’s natural resources,

infrastructure and water security.

Tanzania to target investment through Special Economic Zones Tanzania has set aside 16,150ha of land for

the development of special economic

zones (SEZs) in three of its cities in an

attempt to encourage investment in the

country; investors into the SEZs will be

exempted from tax payments for 10 years,

will have to decide in which of the three

cities – Mtwara, Kigoma or Bagamoyo – to

set up their businesses, and will be allowed

to bring in five people into the SEZs

through an automatic immigration quota

during the first five years.

Actis energy fund raises US$1.15bn Private equity firm Actis has raised

US$1.15bn through its third energy fund,

which will be used for investment in

electricity generation and distribution

businesses in Africa, Latin America and

Asia; Actis currently has US$1.4bn worth of

investments in its global energy portfolio

and its latest fund, Actis Energy 3, has

already been involved in four deals across

the globe, including a preliminary

agreement to purchase a majority stake in

three power assets in Cameroon, as well as

the purchase of a number of water,

wastewater and electricity services in

Morocco.

The new fund will be invested in infrastructure projectsacross Africa (PHOTO: Herman Brinkman/sxc.hu)

African Review of Business and Technology - February 2014 www.africanreview.com

The Actis Energy 3 fund will be invested in electricalgeneration projects in Africa, Latin America and Asia(PHOTO: gc85/sxc.hu)

S03 ATR Feb 2014 - Bulletin_Layout 1 1/21/2014 12:29 PM Page 14

Page 15: African Review February 2014

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S03 ATR Feb 2014 - Bulletin_Layout 1 1/21/2014 12:29 PM Page 15

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16

NEWS

Bulletin / MiningAnglo American set to finance Ferrex’s iron ore project in GabonAnglo American and its subsidiary Kumba

Iron Ore Limited have signed a two-year

agreement to finance African mining explorer

Ferrex for the Mebaga iron ore project in

Gabon; Anglo American, which owns nearly

70 per cent of Kumba Iron Ore Limited, has

aims to stir up its dwindling iron ore business

in the West African country and will manage

the exploration work, if the deal is approval

by board of directors from both sides and the

government of Gabon.

Tanzania sets up new mining company for Tulawaka Gold Mine project The Tanzanian government has set up a new

company in Dar es Salaam to explore licenses

around the Tulawaka Gold Mine and manage

the project in the Kagera Region; Tanzania’s

minister for energy and minerals, Sospeter

Muhongo, said the new company

STAMIGOLD, which is owned by Tanzania's

State Mining Cooperation (STAMICO), was

established in order to make the Tulawaka

Gold Mine profitable again.

Noble Group to loan ResourceGeneration US$65mn for South African coal projectHong Kong-based Noble Group has agreed

to lend South African miner Resource

Generation US$65mn to develop the

US$480mn Boikarabelo coal project, which is

located in the Waterberg region of South

Africa and has been scheduled to commence

production in 2015; Resource Generation

managing director Paul Jury said that the

completion of the loan arrangements had

removed the remaining major gap in the

company's funding plans for the project,

which has been touted to have an initial

output of six million tonnes.

Zimplats to start US$470 millionmining project in ZimbabweDespite announcing plans to close its Rukodzi

mine in Zimbabwe, platinum mining

company Zimplats has announced it will

invest US$470mn in opening a new mine in

the country, after Zimplats CEO Alex

Mhembere said Rukodzi had become too

expensive to operate and that the new Portal

Five mine would replace the mine; Zimplats,

which currently operates the Mupfuti,

Rukodzi, Bimha and Ngwarati mines in the

country, produces more than 5100 kg of

platinum, 4110 kg of palladium, 450 kg of

rhodium and 565 kg of gold a year.

Octogenerian EJ Holtzcelebrates 40 years at MultotecMultotec founder Ernst Joachim (EJ) Holtz is

celebrating 40 years at the company, having

seen it grow to become one of South Africa’s

most successful mining service and

equipment supply businesses, with 40-plus

metallurgists and more than 2,000

employees; Holtz still fulfils the role of

chairman of the board, while his son Thomas

sits at the helm and continues the tradition of

mentorship through transferring skills and

knowledge to other employees.

Aureus Mining secures loan facility for gold project in LiberiaAureus Mining has signed a US$88mn

project finance loan facility deal with South

Africa’s Nedbank and Rand Merchant Bank,

to aid with the development of its New

Liberty Gold Project, which covers a licence

area of 457 sq km and has been estimated to

contain more than 1.14mn ounces of gold

reserves, located within the Bea Mountain

mining licence in Liberia; the project finance

loan facility will be supported by South

Africa’s Export Credit Insurance

Corporation (ECIC) and will have a term of

six years, with the first tranche of the loan

drawn before April 2014.

Base Titanium to export zirconfrom Kenyan mining projectMining company Base Titanium has applied

for a permit to export products from its Kwale

Mineral Sands mining project in Kenya, with

Base Titanium general manager for external

affairs and development Joe Schwarz stating

that the company had spoken to Kenya’s

Ministry of Mining and hoped to send the first

shipment of the material to Japan shortly;

located 50km south of Mombasa, the Kwale

Mineral Sands Project has a mine life of 13

years and Base Titanium began operations at

the mine in October 2013, announcing plans

to produce 330,000 tonnes of ilmenite, 80,000

tonnes of rutile and 30,000 tonnes of zircon

per annum.

Anglo American hopes to increase its iron ore output inGabon (PHOTO: Peter Craven)

African Review of Business and Technology - February 2014 www.africanreview.com

Base Titanium plans to produce 30,000 tonnes ofzircon per annum from the mining project. (PHOTO:Parent Géry)

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Anglo-Swiss commodity trading and mining company GlencoreXstrata has increased its indirect interest in the DemocraticRepublic of the Congo (DRC) copper miner Mutanda Mining forUS$430mn. Mutanda is a high-grade copper and cobalt producer,with its operations located in the province of Katanga, in Congo. Theremaining equity in Mutanda – 31 per cent – is held by a subsidiaryof Fleurette Properties.

Glencore Xstrata acquired a 54.5 per cent interest in Mutanda lastyear, receiving at the time a put and call option agreement for theadditional 14.5 per cent stake. It was also recently grantedregulatory approval to purchase the right to export an additional 6.5million tonnes through the Richards Bay Coal Terminal from BHPBilliton’s Energy Coal South Africa.http://www.africanreview.com/construction-a-mining/

Glencore increases stake in Mutanda mining

The government of Abia State in Nigeria has announced plans tobuild a seaport at Obuaku city in Ukwa West, to boost commercialand economic activities in the region.The Nigerian commissioner for information and strategy, Dr EzeChikamnayo, said the sea port would be situated less than five milesfrom the Atlantic Ocean.“This will be the first seaport in the south-east geopolitical zone. Itwill improve ease of doing business in the state as importers andexporters will not have to travel a long distance now to clear theirgoods,” Chikamnayo said.http://www.africanreview.com/transport-a-logistics/shipping/

The Kenyan government has planned to construct three powerplants to exploit steam in the Rift Valley, the GeothermalDevelopment Company (GDC) has revealed.

The GDC said it will drill 120 wells in the first stage of theproject, with the three plants expected to generate 300MW ofpower by 2018.

Suitable investors for the project will be expected to bring in atotal of US$400mn for the development. http://www.africanreview.com/energy-a-power/power-generation/

18

WEB SELECTION

Japan has entered into aUS$100mn loan agreement withthe African Development Bank(AfDB) to support the growth ofAfrica's economy.The deal was signed by DrDonald Kaberuka, AfDBPresident, and Juichi Takahara,ambassador of Japan to Tunisia.The agreement is the fourth loanto the AfDB under the EnhancedPrivate Sector Assistance (EPSA)for Africa Initiative that the twohave signed.http://www.africanreview.com/financial/banking-a-finance/

New seaport to be built in Nigerian state

The seaport is expected to improve ease of doing business for importersand exporters in Abia State, Nigeria. (PHOTO: Peter Hellebrand/sxc.hu)

African Review of Business and Technology - February 2014

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

Kenya scours for investors for geothermal power project

AfDB signs US$100mn deal to supportprivate sector growth in Africa

www.africanreview.com

Power solutions provider APR Energy has extended its existing70MV diesel power module contract in Botswana for a further 12-month period.The US-based company has been supporting the Botswana PowerCorporation, the national electric utility, through the provision ofits turnkey diesel power modules since late 2009. "The extension reflects our leading industry position in the regionwith 800MW of installed power capacity on the continent," saidAPR Energy CEO John Campion.http://www.africanreview.com/energy-a-power/power-generation/

APR Energy gains extension of power deal in Botswana

China’s Guangzhou Fekon hasannounced plans to set up amotorcycle manufacturingplant in Tanzania.According to the Forum onChina-Africa Cooperation,Guangzhou Fekon generalmanager Zheng Bing saidprocedures were currentlyunderway to start constructingthe factory.

Guangzhou Fekon and theChinese ambassador to Tanzania,Dr Lu Youqing, recently donated44 motorcycles to the KataviRegion. Tanzanian Prime MinisterMizengo Kayanza Peter Pindasaid these vehicles would helpwith the development of theregion.http://www.africanreview.com/manufacturing/industry/

Chinese firm to set up motorcyclemanufacturing facility in Tanzania

AfDB President, Dr Donald Kaberuka,said a US$100mn loan will help supportprivate sector growth in Africa

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Page 19: African Review February 2014

PROFILEIveco

19

Iveco plays its part inEast African transport

African Review of Business and Technology - February 2014www.africanreview.com

Iveco participated in the first GreatRift Valley Transport InfrastructureSummit, which took place in Dar

es-Salaam, Tanzania, on 4th and 5thDecember 2013. The summit wasorganised in cooperation with theMinistry of Transport in Tanzania. Itwas aimed at discussing the currenttransportation system in the EastAfrican region and its potential fordevelopment, in the company of theTanzanian Minister of Transport,Harrison Mwakyembe.

The two-day event provided theopportunity to meet and discuss withexperts and members of differentministerial infrastructure sectors ofthe Rift Valley Countries.Furthermore, internationalcompanies, among which Iveco wasthe main sponsor, were present todiscuss the ability to providetechnologies and investments to helpmodernise local transportationsystems in Central Africa. Iveco, asmain sponsor, exhibited two of itsbest-in-class vehicles: a Stralis , theflagship vehicle for heavy-goodstransport, and a Trakker, Iveco’sheavy-duty off-road vehicle, capableof operating on even the mostdemanding terrain. Africa is animportant investment area for Iveco,

where the company competes with afull range of models engineered forthe local market, and supported via50 dealers offering more than 70sales points. Moreover, in excess of 90service points ensure customers canaccess the highest standards ofaftersales care all over Africa.

The Iveco range offered in Africahas been reengineered to perform atits best in the local marketconditions. This includes key changesto the product to ensure it meets thechallenging climatic conditions

encountered in Africa, together withthe varying road conditions. ■

www.iveco.com

Iveco in the spotlight at the first Great Rift Valley Transport Infrastructure Summit in Tanzania

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Page 20: African Review February 2014

T he decision by Ghana to suspend the operations of a taskforce it previously set up to check counterfeiting, piracy

and smuggling of textile prints into thecountry has not gone down well withindustry operators. These operators havedescribed the action as paying lip service totheir quest for action to check the activitiesof smugglers and pirates who have virtuallycollapsed the local industry, rendering manycitizens unemployed and investors wringingtheir hands in anguish over their losses.

Curbing illegal importationMembers of the taskforce included theNational Security Council, Ghana Union ofTraders (GUTA) and the Ghana NationalChamber of Commerce and Industries(GNCCI). The organisation was officiallyinaugurated in August 2010 with anobjective to curb the menace of illegalimportation of pirated Ghanaian textileprints and to ensure that importers whoengage in these activities are brought tojustice.

The government took this decision usingthe World Trade Organisation’s (WTO)Agreement on Trade Related Aspects ofIntellectual Property Rights (TRIPs), whichobliged it to take certain special bordermeasures under Articles 51-60 of the TRIPsagreement, requiring WTO members to takeaction to prevent illegal goods from beingreleased by the Customs Authority toimporters. The TRIPs agreement alsomandated governments not to allowinfringed goods to enter the channel ofcommerce and also not allow their re-exportation. 

In an earlier attempt to stem the illegality,the Ministry of Trade and Industry (MoTI), ina 2005 directive designated the TakoradiPort as the ‘single corridor’ or the sole entryfor the importation of textiles into Ghana.As corollary to this policy, a committee wasalso set up to vet and approve all textile

designs prior to importation.Though this was accepted by some

industry operatives, the Customs Division ofthe Ghana Revenue Authority (GRA) said thepolicy restricting imports to Takoradiresulted in an upsurge in smuggling with itsattendant loss of revenue to government.This resulted in a review which permittedthe importation of these goods through allentry points on condition that theguidelines on importation of such goodswere complied with.

Thus, from September 2013, all importswere allowed through Kotoka InternationalAirport (KIA), Accra; Takoradi and Tema Portsall in an attempt to salvage an industry,which at its peak in the 1980s employedmore than 30,000 workers directly - not tomention the distributors and itineranthawkers and market traders.

The latest lay-off occurred in December2013 at Printex, a local firm that declared200 of its work force as surplus torequirements due to low patronage of its

goods. Workers’ leader Francis Omariattributed this to the influx of cheap textileson the market - especially from China - inaddition to the high taxes and unavailabilityof markets. 

In a surprising move, in late 2013 thegovernment announced the suspension ofthe activities of the anti-piracy taskforcethrough Nii Lante Vanderpuije, deputy trademinister, following concerns expressed overthe seizure of some 1,000 pieces of piratedtextiles.

In the manufacturers’ best interests?This decision has however not gone downwell with the Textile, Garment and LeatherWorkers’ Union which has vehementlyopposed the suspension, petitioning theTrade Ministry for the reinstatement of thetaskforce. 

But Vanderpuije, who described theworkers’ stance as unfortunate, said theMinistry is working in the best interest ofthe local textile manufacturing industry.

GhanaECONOMY

20

For the well-being of the industryInvestors in Ghana’s textile sector are on their knees as smugglers andpirates render the industry unprofitable

Government critics say the activities of smugglers andpirates have virtually collapsed the local industry.

African Review of Business and Technology - February 2014 www.africanreview.com

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ECONOMYGhana

21African Review of Business and Technology - February 2014

Secretary general of the Ghana Federation of Labour, AbrahamKoomson, said, “If they can or will allow these goods to come fromanywhere, from Aflao to Paga, or Burkina through Elubo, we don’tcare. What we care about is making sure that those who steal ourdesigns are arrested, that’s all.”

Koomson maintained however that industry workers will ensurenobody brings pirated designs  into the country.

According to the workers who expressed their revulsion throughtheir Textile Garment and Leather Employer’s Union, they were“shocked and gravely disappointed about the unilateral decision ofMoTI to suspend the operations of the Anti-Textile Piracy Taskforce,without recourse to the stakeholders, thereby emboldening theperpetrators of the illicit trading activities in the country”.

Edwina Assan, president of the Spinnet Textiles and GarmentsCluster, an association of small businesses in the manufacturing oftextiles and garments for the domestic and export markets,indicated that these policies have made it almost impossible forGhana’s textile products to compete with cheap imports from Asia.

“These textiles are also most of the time inferior, especially thosefrom Asia, which are sold cheaper on the local market, making itdifficult for the local textile products to compete,” she said.

Assan called for the enforcement of best practices and theupgrading of the quality of the industry’s production capacity in aneffort to meet international standards.

“Due to these challenges, there has been drastic reduction inmembers’ production capacity by about 60 per cent, which has alsoaffected employment levels,” she said.

According to Assan, the Ghana Standards Authority has failed tofully operate its taskforce for arresting smugglers due to inadequateresources and the porous nature of the country’s borders.

Assan urged the government to check corruption at the borders,designate only one port as the designation point for all importedtextiles, to avoid the use of porous routes and also pay attention tothe protection of intellectual property with regards to pirating oflocal textile designs.

She also called on the Ministry of Trade and Industry to facilitatethe capacity building of small and medium textile firms to enablethem to position themselves well and be competitive.

“Funds available for micro enterprises are still too expensive toaccess, with interest rates ranging from four per cent to 10 per centper month being too high for small enterprises,” Assan said.

Manufacturers have expressed disappointment in thegovernment, saying they were taken aback by the decision todisband the taskforce put in place to rid the market of pirated textileproducts.

According to them, the decision does not only subvert the growthof the local textile industry, but also constitutes a subtleendorsement of the illicit activities of traders in pirated textiles inthe country. ■

www.africanreview.com

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Page 22: African Review February 2014

FoodAfrica is a research and developmentProgramme enhancing food security inWest and East Africa. The objective of the

Programme is to provide new knowledge andtools for researchers, decision makers and localfarmers to improve local food security.FoodAfrica is coordinated by MTT AgrifoodResearch Finland.

Improving market access with technologyEconomic growth and poverty reductioncannot solely be achieved through landproductivity and food production butperformance of the local market plays a decisiverole in enhancing development. In order tosupport the poorest households it is necessaryto improve infrastructure and performance ofmarket institutions.

Additionally it is important to createopportunities for small-holders to accessmarkets where they can sell their products inreasonable volumes and standards, provideinputs and credits, and provide economies ofscale as well as bargaining power.

This is possible through new marketinformation systems and services based oncommunication technologies (ICTs) such asinternet and mobile phones which createopportunities to reduce the cost of linkingbuyers and sellers within the value chain, andthus raising farm income and reducing poverty.

Improving information flow in commodityvalue chainsFoodAfrica Programme’s sixth Work Packagewill improve the flow of information in valuechains of at least two commodities with theimplementation of market information systems.The Work Package will use randomised controltrial (RCT) approach and difference-in-difference methods to collect and analyse datain Uganda and Ghana.

For farmers, it is important that informationlike weekly harvesting locations, current prices inthe nearby cities, lowest transportation cost of

the products, and information about consumerappreciation, is being processed and provided.

Capacity building at different levels will bebuilt into the research by including differentstakeholders at various stages. Also an inventoryof the current market information systems will beconducted, including the needs of each majoractor in the value chain involving farmers, traders,processors, and other actors of the process.

WP6 will also estimate the impacts ofimprovements in agricultural marketinformation of the value chain, and indirectly ofrural income and poverty in the Africancountries. This information would help to guideinvestment priorities for the Finnish Ministry ofForeign Affairs and other development agents.

Prices for productsFoodAfrica’s approach is unique, compared toprevious projects on using ICTs for farmers, inthat the information provided is customized tothe participating farmers’ specific needs.Farmers benefit to the extent that it improvestheir knowledge about current prices indifferent markets and allows them to changetheir marketing behavior. Based on theinformation they receive via text messages, thefarmers may find a market place, buyer ormarketing time best suitable for them. All in allthe farmers who are on top of things have astronger position in the market and they mightbe able to negotiate better prices for theirproducts. How much better off they are, is thequestion explored by the current testing phase.

The SMS’s include information about crops

and varieties per region, seasonality, pricedetails of seeds, fertilizers, pesticides and list ofstockists within the 10 kilometer radius, currentmarket prices, forecast of market trends,weather information, transport prices frompoints of production and a list of buyers.

Literate farmers with mobile phonesTo be eligible for the service the farmers need toown a mobile phone and be literate. Accordingto a baseline survey conducted by IFPRI, 59 percent of Ghanaian households have a mobilephone, but few of them use it to obtainagricultural market information. Preliminaryresults of a similar survey done in Ugandashows that 70 percent of Ugandan farmerhouseholds have at least one functioningmobile phone.

Customised information on commoditiesFoodAfrica provides the service in co-operationwith two local companies: Esoko and FIT-Uganda. Both companies provide training andinformation to the participating farmers. InGhana the training is done face to face but inUganda it will be done over the phone. Most ofthe information after the training is delivered tothe farmers via SMS messages.

The companies collect price data on variouscommodities in various markets. The farmerswho participate in the pilot study testing theservice, get SMS messages with prices of severalcommodities in several nearby markets. Theinformation is customised so that each farmergets info on the commodities and markets he ismost interested in. The SMS delivery isautomated, making use of a database thatincludes price info, phone numbers, and thepreferences of each subscriber.

The pilot study is scheduled to run forapproximately two years - until mid-2015. Afterthis, a survey will be conducted by theFoodAfrica team where the effect andusefulness of the service for households willthen be verified. ■

GhanaECONOMY

22

Texting to improveagribusinessA trial service being provided to farmers with mobile phones inGhana is set to improve market access for small-scale food producers

African Review of Business and Technology - February 2014 www.africanreview.com

Ghanaian farmers may expect better accessto market information with mobile

technologies (Photo: Trees for the Future)

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There are serious traffic jams in Accraevery day because of a lack of properinfrastructure planning over the years.

One of the massive developments that thegovernment is focusing its attention on,however, is the Ghanaian city’s road network,which it aims to develop to internationalstandards to minimise traffic jams andincorporate improved drainage systems.

As pointed out recently by the mayor ofAccra, Alfred Vanderpuije: “ Today nearly alltransportation in Accra is by road, but 70 percent of the vehicles carry only 30 per cent ofthe people – a trend which causessignificant traffic jams during peak hours.

“Accra’s existing infrastructure is being putunder increasing strain by an influx of newresidents – the city’s population hasexpanded by over one million people – a 35per cent increase in the past decade alone.

“We must therefore act today to ensurethat the city’s systems – from transportation,to water, sanitation, energy, healthcare,public safety, education and administration– are able to accommodate and cope withthis influx of new residents.”

It is in this vein that Ghana’s President,John Dramani Mahama, recently attended agroundbreaking ceremony for constructionof a three-tier interchange at the KwameNkrumah Circle in Accra. The project will costUS$102.3mn and is being jointly financedwith credit from the Brazilian and Ghanaiangovernments. The project is scheduled to becompleted within 24 months.

The contractors, M/S Queiroz GalvaoConstucao from Brazil will also providepassenger sheds and drainage systems.Landscaping and tree planting will beundertaken to improve the environmentaround the area with an additional provisionof roads for future Bus Rapid Transit lanes.

There will also be a police post, a fireservice post and an ambulance centre to beconstructed under the interchange to

provide security and other emergencyservices for motorists and pedestrians.

Indeed, the Kwame Nkrumah Circle is amajor arterial road network in Accra and isestimated to carry 84,000 vehicles a day. Theproject manager of M/S Queriroz Galvao,Alexandra De Vasconcelos Cutinho, said thefirst flyover of the interchange will take careof traffic from Ring Road Central to RingRoad West. Right opposite, an underpass isproposed with two lanes of traffic. Thesecond flyover will connect the AkasanomaRoad to Ring Road West.

Another key component of theinterchange, he said, would be the provisionof green strips and verges to serve as noisebarriers that will reduce the level of noisepollution from vehicles and serve as acarbon sink also for aesthetics.

The acting director for the department ofurban roads, Abass Awolu, indicated thatthe project could not have begun at a bettertime in view of the recurrent congestion oftraffic at the Kwame Nkrumah Circle,describing it as appalling and adding thatthe area could better be described as thetransportation hub in Accra.

President Mahama pointed out that apartfrom the Kwame Nkrumah Circle project, the

government would embark upon anexpansion of the Tema Motorway into a six-lane road with an interchange at the TemaMotorway Roundabout.

Again, he announced that governmentwould be finalising documentation for thedualisation of the Accra-Kumasi road,indicating that an interchange would beconstructed at Kasoa in the Central Regionto ease the traffic.

According to the minister of roads andhighways, Alhaji Amin Amidu Sulemani, theKwame Nkrumah Circle project was designedto address “the severe congestion, as well ashigh incidence of accidents involvingpedestrians and vehicles, due to the longdelays experienced at the intersection”.

The roads and highways minister addedthat the project would reduce averagetravel time for vehicles and pedestrians,reduce the incidence of flooding andmitigate the release of poisonous smokefrom vehicles.

Sulemani also commended local roadcontractors for their significant contributionover the years to the expansion of roadinfrastructure from 37,000 km in 2000 to68,000 km in 2012, representing an 80 percent increase. ■

GhanaECONOMY

24

Modern roads to ease trafficMeasures undertaken to improve highways and byways across the Ghanaiancapital in a drive to deliver international standards of traffic management

The Kwame Nkrumah Circle

African Review of Business and Technology - February 2014 www.africanreview.com

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ECONOMYKenya

25

Reinvigorating Kenya’s growth

African Review of Business and Technology - February 2014www.africanreview.com

Kenya’s economy is estimated to grow atfive per cent in 2013, says the latest WorldBank economic analysis.

The growth rate, supported by consumptionand investment, is higher than the 4.6 per centrecorded in 2012.

“Maintaining a stable growth rate isencouraging as Kenyans celebrate their 50thindependence anniversary,” said Diarietou Gaye,World Bank country director for Kenya.

A key message of this report is that Kenya hasmany achievements worth celebrating butthere is ample room for improving the policyenvironment to amplify these achievements.

The growth momentum is expected to besustained into 2014, with the growth rate

projected to improve modestly to 5.1 per cent,according to the Kenya Economic Update forDecember 2013. 

“Low inflation, fiscal discipline and a stableexchange rate are good indicators of favorablemacroeconomic performance,” said ApurvaSanghi, the World Bank lead economist forKenya.

“Better investment spending and budgetexecution rates will ensure that thesemacroeconomic gains are translated intomicroeconomic ones on the ground.”

The analysis shows that Kenya has madeconsiderable progress in the past half century inmany fronts, including in raising people’saverage incomes and diversifying sources of

growth from agriculture.Social indicators such as infant mortality and

women fertility have also improved. But povertyand maternal deaths remain high, whilesecondary school enrollment and learningoutcomes are below potential.

The report also highlights the infrastructureand other bottlenecks that impact on the costof doing business.

John Randa, the Bank’s senior countryeconomist for Kenya and one of two leadauthors of the report, said, “Strengtheningstructural reforms in the transport sector andpublic financial management will improveopportunities for higher output andproductivity.” ■

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Do you hold with the opinion that we are now seeing a new Africa?Let me start by saying quickly that in Africa we have seen a big shift inpower, in terms of what Africa was known for and what it was believedto be, as a place full of problems, poverty, disease. It has become thatlast frontier in terms of global investment and the reasons are clear.Between 2001 and 2010, African economies were six out of the 10fastest-growing economies in the world.

The IMF predicts that between 2011 and 2015, seven of the 10fastest economies will be from Africa. The reason for this is that wehave had continued political and economic stability over a fairlylong period of time.

When you look at the macro-economic environment today, Africa isone of the best-run in terms of the debt to GDP ratio for example, thegrowth is there, so we’ve seen a new Africa.  We are seeing Africa in aplace it has never been. 

Does this growth go beyond the global commodities’ boom?Africa for many decades was the provider of the world’s raw materials.You can take Nigeria as an example, with its huge oil and gasreserves. But there is much more – for example, look at agriculture.We have 84mn ha of land where almost everything and anything cangrow, just like Brazil, but only 40 per cent of that arable land iscultivated. And what do we do with the products? Currently, weexport cocoa beans, cotton and sugar cane as primary commoditieswith no value addition.

In the various solid minerals sector, we have 44 different minerals incommercial quantities, including iron ore, bauxite, gold, etc, all inabundance in the country. We are the 11th largest producer of oil interms of reserves of crude oil and we’re in the top nine when it comesto gas reserves, yet for decades we have been exporting the oil andgas for others to refine and process. We export the primarycommodity, and they process it, add a profit margin and re-export itback to Africa. We buy petroleum products with the proceeds we getfrom crude oil.

That doesn’t make any sense; that is a crazy economic model. That iswhat Africa has done for decades: now we have to shift the paradigm.

Can you describe the approach you are taking towards resourcevalue addition?Africa today is saying to the world “we have the resources”. Look at thefour or five main ingredients that any investor is looking for. Aninvestor needs the capital to do business; an investor needs the know-how, the technology and needs the raw materials, the market and areturn on investment.

Now the capital and technology can move anywhere in the worldbut the raw materials market you cannot move. That is what Africa hasin abundance.  So the time to change and move from a poor to a richcontinent is now and the only way to do that is value addition -industrialisation.

History tells us that no country has managed to move from being apoor to a rich nation by relying on exporting raw materials – whichwas what Africa has done for decades, with no strong industrial andservices sector.

How do you foster that process?Firstly, we require visionary leadership with clear goals and objectiveson where the continent should be heading. 

The next thing is to introduce sustainable well-thought throughpolicies that will promote investments into the real sector of theeconomy, which is what we are slowly doing in Nigeria.

Last year we passed a policy regarding the refining of sugar cane.Up to then we were importing 97 per cent of sugar we consumed.But refining sugar cane in the country not only creates a lot of jobs,but from the waste we now produce ethanol and animal feed. Welooked at Sudan and saw how the sugar industry has supported theSudan economy. 

In early October we passed a new auto policy, and within a weekNissan announced that it wanted to invest in the country. And Nigeriareached an agreement with Nissan that impacted at least nine different

NigeriaECONOMY

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The time for change is nowNigeria’s Minister of Trade, Industry and Investment, Olusegun OlutoyinAganga addresses practically the entire economy - so, who better to talk toabout Nigeria’s potential?

Olusegun Olutoyin Aganga

African Review of Business and Technology - February 2014 www.africanreview.com

We require visionary leadership withclear goals and objectives on where the

continent should be heading” - Olusegun Olutoyin Aganga”

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NigeriaECONOMY

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economic sectors. That is where you start shifting the paradigm.You see, competitiveness is not about having the raw materials,

competitiveness is what you do with the raw materials, how youcreate and add value and in that process create jobs.  When you simplyexport primary raw materials you export jobs as well, and createemployment in other countries.

Has working within the private sector informed your way ofleading a ministry?Yes. If you work in any environment for a length of time you willimbibe the culture, the attributed values of that environment, andthat will shape you and affect your views and how you react and dothings. So there’s no doubt that having worked abroad, with Ernst &Young and Goldman Sachs, with such brilliant people around you,you have to learn different skills and knowledge to be successful inthose environments.

These are the same attributes you need to try to reform and makechanges in the country, so there’s no doubt that my experience in theprivate sector has been a big driving force and has been beneficial tomy new role in government.

What will the Nissan investment involve?Nigeria has 170mn people and has the potential to be the third largestnation in the world by 2017, after India and China. It’s part of the300mn population in Ecowas.

Now the way this industry will develop is, to begin with, assemblingwhat are called fully knocked down kits and then start increasing localcontent over time, so that’s the programme.

We envisage Nissan partnering with a local assembler andgradually over time increasing production.

The beauty about Nigeria is that we can build for all threedomestic, regional and export markets. Africa’s largest automotivemanufacturer, South Africa, has had to focus on exports because theyhave a much smaller population.

With Nigeria we are producing for the local market, because it’s abig country, a young population with an average age of 17.5 years,with a middle-class of between 25mn and 35mn people, so there is alarge local market to supply. But our ambition is not just the localmarket, it’s also the export markets. We want to export to the rest ofAfrica and overseas.

I want to add that the auto policy is also about spare parts. We wantto develop the auto spare parts industry, to build an auto componentsmanufacturing cluster. The spare parts will supply the assemblers in thecountry, but at the same time we’ll be exporting as well as supplying thedomestic market.

I understand you are also partnering with Brazil in developing theauto industry?Yes. You see, scale is very important and that is why we are partneringwith Brazil to replicate the same auto school they have in Brazil. Theyhave done the design already, which I saw for myself. Now the autoschool is going to do two things; it’s going to teach the servicing andmaintaining cars as well as about producing the spare parts to meetinternational standards.

A factory will be located next to it to provide internshipprogrammes. So it’s a very holistic way of looking at developing anauto industry in the country.

There have been some big announcements on SMEs recently ...Yes, and there’ll be more coming too. In 2010 there were 17.5mn SMEsin the country employing close to 32mn people, so that’s a huge partof the economy.

I believe that there are only three main things that they need: access

to affordable capital, business development services and the rightinfrastructure support to reduce their cost of doing business in termsof power, electricity. We are addressing all these things.

On the issue of power, what is the current situation?The reason we are where we are today is because of the under-investment in power over decades, so it has been privatised. PresidentJonathan has taken this bold step. For the first time in the history ofNigeria, we have successfully privatised the power sector, whichmeans that the 11 distribution companies, the seven generatingcompanies have all been sold to the private sector. They are  now inthe hands of the private sector, which will improve efficiency and ofcourse attract more investments into the sector.

By the end of Q1 this year we expect 10,000MW of power. So wehave the likes of Siemens, Daewoo, Electrobrass, GE, China Power allworking with us to generate power. Between them, in total, we’retalking about having an installed minimum of 40,000MW of powerwithin a decade. That can be translated into about US$40bn ofinvestment.

We expect that the power sector will become the next telecomssector. Speak to the people at a telco like MTN for example: Nigeria isthe most profitable area for them, and that sector has been growing atthe rate of 30 per cent a year since it was privatised.  We expect to seethe same thing in power. 

Power generation today stands at maybe 10-15 per cent of what weneed, so there’s room for big investments, such as the US$1bninvestment GE is bringing to the country.

We’re seeing other groups coming to Nigeria to producetransformers, and another group coming to produce transmissionequipment. It’s a new industry that is progressing well.

Do you believe the investment climate in Nigeria is improving?The latest UNCTAD report ranks Nigeria as number four globally interms of the return on investment.  Nigeria’s average return oninvestments is 35.5 per cent; the global average is about 6.7 per cent.

I always point out that the richest man in Africa is a Nigerian. He’scalled Aliko Dangote, and Aliko Dangote made all his money inNigeria. That fact tells you a lot about the country and the investmentopportunities that are there. ■

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Aliko Dangote

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There are around 500mn smallholdings actively working in fewerthan two hectares of land each, and yet more than a third of theworld’s population relies on their output for survival. The

dependence on such farms is even higher in sub-Saharan Africa,where their output accounts for 80 per cent of all the food producedhere for local/regional consumption. Improving the productivity ofthese all important small-hold farmers is crucial if the future foodsecurity demands of an ever-growing human population are to bemet. This productivity is, thankfully, the focus of a number of globalinitiatives, which are looking to the mobile phone as a potential‘saviour of mankind’.

Mobile telecommunications are set to have a profound impact onwomen in countries where, in some regions, they account for as muchas 70 per cent of the total agri-workforce and are, effectively,responsible for producing almost half the world’s food. It’s no wonder,then, that across Africa, many regional mobile phone operators as wellas organisations like USAID, Nokia, Vodafone, the Bill & Melinda GatesFoundation, the GSM Association (GSMA) and others, are forging aheadwith research and projects, which recognise the importance to futurefood security of putting mobiles into the hands of African farmers.

Connecting the unconnectedOver the next five years, the mobile communications sector is expectingglobal mobile subscriber growth to be driven by demand from amongan estimated 1.8bn unconnected people in developing countries. It willcome as no surprise, therefore, that a huge majority of these would befound in remote, rural locations where they depend on agriculture fortheir livelihoods. To the mobile industry this is a significant untappedmarket; for the rural farmer, a gathering revolution.

Projections galoreBy 2020, the world’s population is expected to grow by 750mn andthe impact of such things as climate change and water scarcity willbe acutely felt. With this fast-approaching, potentially bleak future,action needs to be taken now to improve the efficiency of foodproduction and its distribution — a 70 per cent increase in thatproduction is projected as that needed by the time we reach 2050,when the Earth’s population will have hit 9.2bn.

Among the organisations actively pursuing mobile agriculture ismobile communication group Vodafone, which commissionedmanagement consultancy Accenture to conduct a study in 2011 onthe viability and potential of mobile communications in agriculture.

The research looked at how, by giving farmers access to basicmobile financial services and agri-information services as well asproviding new agricultural techniques and market information, thiscould lead to farmers securing improved prices for crops and higherreturns on their investments. With an ever-improving, harvest-by-harvest income the study said that these farmers would be able toinvest in better seeds, fertiliser, pesticides and agro-chemicals, andeven have more time to generate income from elsewhere.

The report also added that mobile financial payment services,together with access to mobile agricultural information services,would account for 75 per cent of the total increase in agriculturalincome’ for these farmers.

Additional incremental income for farmers of US$52bn by 2020was also projected along with water savings amounting to aroundsix per cent in many regions, through the use of mobile agricultureservices. As for the mobile operators themselves, they can expectrevenues from over 174mn fee-paying connections to mobileservices per annum.

The Democratic Republic of Congo, Egypt, Lesotho andMozambique were cited in relation to weather-related informationservices delivered to farmers over mobile phones, which the reportsaid could potentially help achieve a 10 per cent, or more, savings intotal freshwater usage and contribute to additional agriculturalincome of US$34bn across those countries in 2020. Such weatherforewarning will help farmers plan their planting, irrigation andharvesting schedules, to avoid using water when it’s about to rain orquickly harvesting crops if damaging storms are predicted. Justlooking at the sky for clues is a thing of the past!

An NGO viewWhile the Accenture report was largely welcomed by NGOs of thelikes of Oxfam, it also stated that the report only went part of the wayin its analysis.

The NGO wanted to see future mobile research emphasis placed on

MobileTECHNOLOGY

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A communication revolution for farmersMobile telecommunications can help growers, buyers, distributors and exporters to trade with each other more efficiently than ever before

Mobile telecommunications are set to have aprofound impact on women in countrieswhere, in some regions, they account for asmuch as 70 per cent of the total agri-workforce

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government safety net systems, gender equality and new inclusiveagricultural practices, to see how mobile technology could support thepoorest and most food insecure small farmers as well as encouragingmobile operators like Vodafone to fully address barriers to the use ofmobile technology affecting women. They also want mobiletechnology to address agricultural adaptations to climate change.

Mobile initiatives Agricultural development is one of the largest initiatives of the Bill &Melinda Gates Foundation, which has so far dedicated over US$2bn tosuch efforts, with sub-Saharan Africa one of the regions of chief focus.The foundation’s approach is to listen to farmers in order to addressspecific needs about the crops they want to grow, eat and sell, andunderstand challenges that may be specific to individuals or individualcommunities.

And with the support of the Gates’ Foundation and USAID, theGSMA’s mAgri programme is probably one of the most importantinitiatives currently active.

A mobile future for Africa’s farmers There are now far too many mobile agriculture initiatives and projectsunderway across Africa than can be mentioned in detail in this shortarticle, but before closing mention should be given to the Nokia Lifeservice, which already delivers education, health, and agricultureservices to 90mn users in China, India, Indonesia and Nigeria and isexpected to expand into other countries during 2013. Africa’s small-hold farmers are set to benefit greatly from the attentions of theworld’s mobile communications sector — as is that sector from theneeds of Africa’s farming community.

Nigeria’s initiativeIn January 2013, Nigeria’s Business Day reported that the governmentwas to give around 10mn phones to the country’s farmers in what itsaid was a ‘bid to boost agricultural production in the country’. Theinformation was said to have originated from the federal government’soffice of Ibukun Odusote, permanent secretary in the federal Ministryof Agriculture and Rural Development. The report said those receivingthe handsets would have access to information on delivery dates,farming seasons, fertiliser, product prices and scarcity periods. ■

Tim Guest

TECHNOLOGYMobile

31African Review of Business and Technology - February 2014

Access to basic mobile financial services and agri-information services as well asproviding new agricultural techniques and market information could lead to farmers

securing improved prices for crops and higher returns on their investments

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Even the most comprehensivemaintenance programme cannot stopfaults developing in machinery but

one can ensure that faults do not lead tounexpected failures before your nextscheduled maintenance outage.

Condition monitoring puts you in thedriving seat to actively prevent breakdownsand optimise maintenance resources whereand when they’re needed.

Condition monitoring assesses the healthof a machine by periodic monitoring andanalysis of data obtained during operationtrending the results against levels ofacceptability. Efficient, non-intrusive to theproduction process and with the provenpotential to save thousands of dollars insecondary damage, lost production andunnecessary maintenance — conditionmonitoring is the proven, preventativemaintenance approach for early faultdetection and prevention in all types ofproduction machinery.

Monition has the expertise in theapplication of the various technologies tocombine a number of condition monitoringtools to provide the most effectivemonitoring package for companies’operations. Monition has introduced thebenefits of condition monitoring and

predictive maintenance to organisationsboth large and small, in practically everyconceivable industry.

Monitoring with multiple technologiesCondition monitoring provides detailedinformation about the health of plantmachinery, alerting maintenance personnelwhen components or lubrication starts todeteriorate so that preventativemaintenance can be appropriatelyscheduled to avoid costly downtime andexpensive emergency repairs.

As the old saying goes ‘Two heads arebetter than one’, modern conditionmonitoring encompasses manytechnologies such as vibration analysis,thermography, tribology, electrom motor

testing and laser shaft alignment. Many ofMonition’s clients now enjoy the precisionlevel of analysis afforded when two or morecondition monitoring technologies such asvibration analysis and tribology arecombined.

The benefits of such a highly-sophisticated, prognostic maintenance toolare that it can be employed to not onlyrecognise developing faults within amachine, but to identify factors within amachine that will cause these faults todevelop in the first place.

The bigger picture is that a combined-technology approach can be utilised todramatically increase machine operatinglife, productivity and ultimately, businessprofitability. ■

Condition MonitoringTECHNOLOGY

Prevent unexpectedmachine failures The provision of specific services for maintenance of machines, which canalso help increase their shelf life

Monition has the expertise in the application of the various technologies to combine a number of conditionmonitoring tools to provide the most effective monitoring package for your operations

Efficient, non-intrusiveto the production

process and with theproven potential to savethousands of dollars insecondary damage, lost

production andunnecessary

maintenance

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Back-up power supply solutions are being provided to theappointed contractor at the R3bn (US$92.2mn), 75MW KathuPV power plant in the Northern Cape by the South African

division of Cummins - a global leader in the manufacture, sales andservicing of diesel engines and related technology. The Kathu PVpower plant forms part of South Africa’s ongoing renewable energyprogramme, which aims to diversify the country’s energy mix andreduce its carbon footprint. Once completed in 2014, it is expected tobe one of the world’s largest PV power plants with a single-axistracking system.

It will have the capacity to generate 146GWh of clean solarpower into the national grid, which is enough to meet theenergy needs of more than 40,000 people based on averagenational per capita consumption, while displacing the equivalentof 50,000 tonnes of annual CO2emissions. While development ofthe Kathu PV power plant continues,Cummins SA was commissioned tosupply the appointed contractor atthe project with a total of nineteen17kVA single phase generator sets,as part of a supply agreement that began in July 2013,and is due for completion in early 2014.

Optimum performanceCummins SA general manager for power products sales, CletusMakombe noted that the Cummins commercial generator set is a

fully integrated power generation system thatprovides optimum performance and

reliability for stationary applications. "Although Cummins is traditionally

recognised as an engine manufacturer,power generation is a key focus areafor the business," said Makombe. "Thesingle phase generator sets are beingsupplied to ensure a reliable backupof energy for the onsite motor

control centres. This project isevidence that Cummins is fully

capable of supplying backup power forhybrid solutions to the African energy

sector."Cummins Power Generation is recognised as a

world leader in the design and manufacture of pre-integrated generator sets, ranging from 8kVA to

3,300kVA, and is able to meet energy needs that include;continuous, prime, peaking, standby, cogeneration or a

complete turnkey power plant.

‘Power of One’Makombe stated that all major components including engine,

alternator, transfer switches and control systems are designed andmanufactured according to the highest standards of quality set byCummins - an integrated approach known as the 'Power of One'.

"The Cummins Power of One approach ensures that each elementof the pre-integrated power solution works in harmony from thestart," he said. "The result of this is smaller equipment footprints,reduced installation time and higher system reliability."

Cummins Power Generation boasts more than 90 years ofexperience in international power generation. The company's range ofpermanently installed and mobile power systems have been usedacross Africa by various hospitals, factories, office buildings, hotels,casinos and telecommunication centres - for both long and short-term standby power needs. ■

Cummins diesel gensets are providing back-up power supply to the Kathu PV power plantin South Africa’s Northern Cape

Cummins tackles

South Africa’scarbon footprint

ADVERTORIALCummins Power Generation

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The takeover of Power One by ABB, the world’s biggest supplier ofindustrial motors and power grids, was proof positive of theconventional energy sector’s growing interest in renewable

energy systems, especially for developing economies.Although ABB stated it had no interest in buying into the solar panel

market, in its acquisition of Power One it has, at a stroke, become aworld leader as a supplier of solar inverters. These are required to enablethe power that is generated by photovoltaic panels to be fed into grids.

The photovoltaic (PV) cells that make up the panels transformsunlight directly into electrical power. At the heart of every cell is asemiconductor that usually consists of silicon and exploits thephotovoltaic effect.

When layers of semiconductors are arranged on top of each other in aparticular structure, the incidence of light (photons) creates free chargesthat are able to flow away as electrons via an electrical conductor.

The direct current generated in this way can be used to runelectrical devices or stored in batteries. If it is converted intoalternating current with solar invertors, it can also be fed into power

grids. And PV is scalable, the technology can power a wrist watch, runstand-alone applications such as traffic lights, or be used collectivelyin vast fields of solar panels to produce megawatts of power.

Around the world, the take-up of solar energy from PV cells hasbeen dramatic. In 2010, solar cells with a potential capacity of 17GWwere installed around the world. Compare that to the 7.3GWinstalled the previous year, and how today more than 40GW of PVsolar has been rolled out, seven times more than five years ago. InChina alone, it is anticipated that the country will have, by 2015,150GW of wind and solar capacity. Global production of PV cells hasdoubled each year from 2005 to 2010 while costs have also fallen by50 per cent over this period.

There are two countries in Africa at the forefront of developing theirsolar industries. These are Morocco and the continent’s biggesteconomy, South Africa.

Speaking at the 2013 Energy Indaba in February, held at theSandton Convention Centre in Johannesbug’s northern suburbs,Dipuo Peters, South Africa’s minister of energy referred to hergovernment’s establishment of more than US$74,000 national greenfund. More than US$37,000 was invested in green economy projectsand have been already approved for municipalities, state institutions,community organisations and the private sector.

Solar power has a central role in South Africa’s bid to achieve energyself-sufficiency and the country’s ability to promote green growth.

The massive rollout of 315,000 solar hot water geysers, with 70 percent of them given to poor households, is a case in point – and justpart of the government’s target of distributing one million waterheaters by the end of next year.

Water heaters (and solar ovens), are perhaps the most common of7applications of solar thermal energy worldwide. But these, and PVpanels, are just two of the three solar energy systems that can

Solar energyPOWER

34 African Review of Business and Technology - February 2014

Solar-powered traffic lights havebeen rolled out in South Africa

Africa goes for the sunWhy solar energy, along with other renewable energy systems, promisesthe means to close the continent’s energy gap

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generate energy from one of Africa’s mostabundant resources – the amount of sunlightthat falls on the continent.

The sun delivers more energy to the earthin just one hour than is used worldwide inone year, and Africa enjoys the highest solarirradiation in the world. “If harnessedproperly,” Professor A Sambo, the CEO of theEnergy Commission of Nigeria told the

Energy Indaba, “solar energy, falling freelyfrom Africa’s skies to reach everywhere on thecontinent without transmission lines couldmeet all the electricity needs of Africa.”

The third of the three solar systems is knownas concentrated solar power (CSP). There are,essentially, four basic CSP types: the parabolictrough collector; the Fresnel collector; the solarpower plant; and the dish system.

The parabolic system uses curved mirrorsthat are up to six metres wide and 150 metreslong to concentrate sunlight onto a centralabsorber pipe containing a special oil. That oilcarries the absorbed heat to an exchanger,heating water to create steam to drive agenerator that produces electricity.

The technology behind the parabolic typeof CSP is quite well known, having beenutilised since the late 1980s. This systemappears to be the one most favouredcurrently, with Morocco building the firststage of a huge 500MW CSP site using thistechnology at Ouarzazate. It is beingdescribed as part of the hugely ambitiousDesertec project which aims to utiliserenewable energy from the across the wholeof North Africa. This energy, derived fromsolar and wind, will not only feed domesticmarkets but also supply southern Europe viasubsea cables across the Mediterranean.

Whether Desertec will get off the groundhas been put into doubt by the seismicpolitical events that have impacted the regionover the past two years, which are yet to fullyresolved. Political support is deemed a vitalprerequisite for the Desertec project, and thatchallenge, it seems, is unlikely to be achievedin the short-term. ■

Solar Energy POWER

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Nedbank recently launched South Africa's firstrenewable energy powered bank branch

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POWERPlant

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Schneider Electric and DONG Energy are working together on atechnological and commercial partnership for a moresustainable energy supply of remote islands in Africa. The

ambition is to enable African electric network operators of remote orisolated island grids to increase the share of renewable used whilemaintaining grid stability and reliability for consumers.

Of the world’s fifty-two Small Island Developing States (SIDS), sixare in Africa: Cape Verde; Comoros; Guinea Bissau; Mauritius; SãoTomé and Príncipe; and Seychelles. The smallest, Seychelles, iscomposed of 115 small islands representing the largest numberamong African SIDS; the largest, Guinea Bissau, comprises 80 islands.

In Africa alone, at least 300 remote islands distanced from mainlandgrids exist. These isolated island grids are often heavily diesel-dependent, incurring high electricity costs and subject to fluctuatingfuel prices. This is a barrier for local economic development, forimproving living standards and for reducing carbon emissions. Manyisland utility operators aim to replace diesel with renewable

generation to reduce costs and reach renewable targets. However themain challenge of integrating intermittent renewable energy is theensuing complexity of balancing the grid and maintaining reliabilityand stability. In effect this can cap the amount of renewable energywhich can be efficiently integrated.

With Dong Energy’s virtual power plant technology and SchneiderElectric’s market-leader distribution grid field devices andmanagement systems, the partners will address these crucialenvironmental issues. The aim is to create a new platform offering real-time generation and demand forecasting, monitoring and control.

“Dong Energy has developed a virtual power plant system calledPower Hub, which aggregates loads and generation capacity fornetwork flexibility through a software platform. The system hasalready successfully demonstrated its capability and value inoptimizing, balancing and improving the stability of remote micro-grids at the Faroe Islands,” said Evert den Boer, senior vice president inDONG Energy. ■

Sustainable supply toremote islands

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With plenty to learn and much tocommit to, CONEXPO-CON/AGG isas vibrant as ever, with its American

host city Las Vegas entertaining participantsbetween 4 and 8 March 2014.

There is an outstanding spread of newequipment, new technologies and newservices to assess and acquire. Terex Finlay, forexample, is launching the 684 tracked mobileinclined screen, a highly versatile andadaptable machine engineered and built forworking in quarrying, mining, constructionand demolition debris, topsoil, recycling,sand, gravel, coal and aggregate applications.It presents, also, the J-1170 primary mobilejaw crusher - a high performance primarymobile jaw crusher built around therenowned and aggressive Terex 1100mm x700mm (44” x 28”) jaw crusher, with a proventrack record in recycling, aggregateproduction and mining applications.

Among several new cranes that Manitowocwill feature at CONEXPO 2014 is the ShuttleliftCD5520. This next-generation industrial cranerepresents a complete redesign of the currentproduct offering, and boasts the highestcapacity and longest reach in the class.

The Shuttlelift CD5520 has an 18 t (20 USt)capacity and 16.6 metre (54 ft 6 in) four-section, full-power boom. Thomas McCallum,director of industrial crane sales and craneremarketing for Manitowoc, says thepowerful crane is the first in a new generationof industrial cranes.

“With this project, we completelyredesigned the industrial crane from theground up,” he said. “The end result is awholly innovative, superior machine thatbuilds on the Grove and Shuttlelift tradition.”

Portfolios and purposesApart from its offroad portfolio of world-record holding self-propelled modulartransporters (SPMT) and the robust

industrial lift and shipyard transporters,the TII Group offers a huge variety ofproducts tailored to the customersdemands in transport on public roads andbeyond. The dual lane trailer WideCombias well as the HighwayCombi and theHighwayTrailer perfectly match thesedemands. Modular systems like theNicolas MHD, the Scheuerle-Kamag K25which can be coupled with competitorbrands or the Scheuerle InterCombi allowall sorts of variations for every imaginabletransport purpose.

Bergkamp provides a cost-effectivesolution to maximising fleet utilisationyear round with their SP Series SprayInjection Pothole Patcher. The companyoffers a full line of truck-mounted, trailer-mounted and continuous slurry seal andmicro surfacing pavers and equipment, aswell as spray injection and all-in-onepothole patching equipment.

Caterpillar will present its latest portfolio

at Caesars Palace, as it strengthens itspartnership with Trimble to expandsolutions and service offerings for customersglobally. Building on a partnership thatspans nearly 20 years, the new agreementsenhance both companies’ efforts to serveglobal customers better from project designthrough completion, with criticaltechnologies and services focused on fleetmanagement and site productivity across acontractor’s entire equipment fleet,regardless of brand.

“Caterpillar has worked with Trimble since1996 to optimize site productivity through arevolutionary suite of grade controlsolutions, differentiated by industry-leadingmachine integration straight out of ourmanufacturing plants, mixed fleets’aftermarket systems and through our world-class distribution network,” said Hans Haefeli,Caterpillar vice president with responsibilityfor Cat’s Advanced Components andSystems Division. ■

CONEXPO-ConAggCONSTRUCTION

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Presenting portfolios toimprove projectsCONEXPO-CON/AGG to feature an array of technologies and services tosupport a multitude of job types

Bergkamp’s trailer-mounted SP spray patcher

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According to Jignesh Soni, owner ofZamm Imports, “Zambia isexperiencing a construction and road

building boom like never before and weexpect that the current high demand foraggregate will only increase. We are alsocrushing a substantial amount of limestonefor the mining industry for use in leachingplants and smelters.”

Zamm Imports has to be one of the mostimpressive success stories in Africa’s crushingand screening industry, having achievedspectacular growth over the last 48 months.Wayne Warren, Africa sales manager at PilotCrushtec International, has a view to offer onthe company. He said, “Zamm Imports hasconsistently supported us, as from the verybeginning they saw our ability to deliver theright products on time. By products, we meannot only complete plants but replacementparts, products and technical advice. The trustfactor has been predominant since ourrelationship began four years ago.”

Promotion and growthThe adage, ‘It pays to advertise’, has neverbeen more pertinent because at the timeZamm Imports had decided to capitalise onthe snowballing demand for growth in localinfrastructure when they came across a PilotCrushtec advert.

“The company was looking for a turnkeyplant that would produce high volumes ofaggregate, right from the word go... JigneshSoni regularly travels across Africa and readone of our market-related advertisements inan inflight magazine,” said Warren. Heapproached the Jet Park-based company foradvice and it was not long before hisenterprise took delivery of, what was at thetime, the largest crushing and screeningplant ever to be produced by Pilot CrushtecInternational.

The onsite installation, commissioning andtraining process reinforced the company’sconfidence in a product offering which more

than met the performance expectations ofthe industry newcomer. Since then, thepartnership has grown from strength tostrength.

Soni said his first two crushing andscreening plants are operating in Ndola andKitwe, while a new plant is undergoingcommissioning in Luanshya.

Soni pointed out that Pilot CrushtecInternational has been instrumental in thegains Zamm Imports has made in the sale ofaggregate and crushed limestone in therecent past.

As the current owner of a fleet of crushingand screening equipment worth someR42mn (US$3.8mn), he has full confidence inhis supplier.

“Pilot Crushtec International has been vital toour success. It understands our needs andconsequently designed plants to meet ourrequirements. Above all, its products are robust,reliable and replacement parts are immediatelyavailable, by air if necessary,” he said.

The modular plant concept providesoperators like Zamm Imports with a seriousstrategic advantage in a country the size of

Zambia. They are relatively easy todisassemble and transport to the nextproject, which typically may be well over athousand kilometres’ distance from theprevious site.

Zamm Imports’ impressive inventory ofPilot Crushtec International modularequipment includes: three PilotModular/TRIO MJ3042 Jaw Crushers, a PilotModular/TRIO MC90 Cone Crusher, three PilotModular/TRIO TD6118 Triple Deck Screens, aPilot Modular MFH25 Feed Hopper, a PilotModular/TRIO DD4815 Screen, a PilotModular DD3615 Screen, one PilotModular/TRIO MC51 Cone Crusher and a PilotModular/TRIO MC130 Cone Crusher and aPilot Modular Impact Crusher IC4054. Thefleet is rounded off with a Rubble MasterRM80 crusher.

Materials handing is facilitated by anarmada of Pilot Modular conveyors. The line-up includes four MC800 20m units, oneMC1200 25m unit, one MC1050 24m unit, oneMC1050 21m unit, six MC800 16m units, twoMC600 13m units, one MC1000 11m and twoMC1000 9m units. ■

RoadsCONSTRUCTION

40

Building a business,from zero to supremoIncreased investment in roadbuilding and other forms of construction inZambia have generated higher demand for aggregate

Zamm Imports impressive plant with all crushingequipment supplied by Pilot Crushtec International

African Review of Business and Technology - February 2014 www.africanreview.com

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CONSTRUCTIONEquipment

Born and bred right here - Bell is Africa’s very own global equipment supplier. With Bell you get machines built tough for our harsh environment and support from Africa’s most comprehensive network of people dedicated to your success. Best of all, while you are creating infrastructure and jobs, so are we.

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ELB Equipmentexpands intoEast AfricaThe fast-growing oil and gas exploration

in East Africa prompted ELB Equipment(ELB) to expand its South African

operations by opening up a branch outlet inNairobi, Kenya to distribute earthmoving,construction and mining equipment.

ELB Equipment, a member of the ELB Groupis listed on the Johannesburg Stock Exchangesince 1951. The group was founded in 1903.

The many years, during which ELB hassuccessfully served the unique anddemanding African mining and constructionequipment markets, is an assurance tocustomers that their businesses will besupported by a well-established and dynamicsupplier of world-class equipment that meetslocal and international safety standards.

Equipment distributed by ELB includes - butis not limited to - backhoe loaders, excavators,wheel loaders, crawler dozers, compactionequipment, mobile crushers and screens, aswell as trenching and horizontal directionaldrilling equipment. All machines sold by ELBhave been proven, tested and engineered tosuit the extremely hot, and in certain areas adry and abrasive African environment.

“In order to be close to our customers, theestablishment of the branch in Nairobi isfurther proof that ELB honours its strategicmission,” said Desmond van Heerden, adirector of ELB. He further said that ELB SouthAfrica will work closely with ELB East Africaand in the best interests of the customer baseof both businesses.

Through this new venture, ELB East Africawill have access to one of the largest spareparts and components stock in Africa; and toexperienced field service technicians andqualified engineers in South Africa andabroad. With the support of the entire ELBGroup of companies, ELB East Africa istherefore in an ideal position to distribute allthe equipment and services required in theinfrastructural development of a rapidlydeveloping territory. ■

Enquiries:Desmond van Heerden, RSA: +27 (0)11-306-0700Miles Hargreaves/Colm Halley, Kenya: +254 (0)20 807-0728www.elbequipment.com

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Thanks to a unique combination ofsupreme quality and affordable pricing,Metso’s Indian-manufactured

Nordwheeler portable plants have proven aglobal hit. Metso began building Nordwheelerportable plants in India 10 years ago. Thecrushing and screening technology producedin India by Metso has assumed an importantrole in several infrastructure projects in Asia,Middle East and Africa. During a short periodof time, Metso has sold over 30 portablecrushing and screening plants outside India toAsian and African aggregates producers forconstruction and road projects.

Products for professionalsThese portable plants are manufactured inMetso’s factory in Bawal, India. Earlier thisyear, the factory passed the milestone of1,000 manufactured portable plants in India.

“Whenever the plant performance and endproduct quality are stressed, Metso has astrong position with its wheel-mounted,portable plants. They are built with field-proven components to secure reliableoperation and long life,” commented EricLavieville, product manager for portableplants, Metso Mining and Construction.

The foundation of each Nordwheelerportable plant is a rugged steel frame,which Metso equips according to thecustomer’s needs and specifications withjaw, cone or impactor crushers, requiredfeeders, screens and conveyors. And, bycombining two or three portable plants, acomplete, mobile crushing and screeningprocess can be built.

“The basic engineering concept for thesemachines was originally made in Metso’sEuropean factories. Through a professionaltechnology transfer, these products werebrought to the Indian market. Here, themodels were further developed for simpleand efficient use by our local engineeringteams of in Gurgaon,” said VenkatramanRavindran, general manager of mobileequipment for the Asian market, MetsoMining and Construction. “In India alone, wehave sold over 900 units. Export marketingbegan recently, and so far, we have sold

plants to countries like Thailand, Oman,Angola, Nigeria, Ghana, Ethiopia andMozambique.”

Metso’s portable plants are best suited forsmall to medium size quarries as well as forcontractors, for capacities between 100-400metric tons per hour. A standard plantconsists of two or three crushing stages.Aggregates produced with Metso’s portableplants can be used in a wide variety ofinfrastructure projects to build roads, bridges,railway networks, airports and tomanufacture concrete and asphalt.

Performance to guarantee profitabilityNordwheeler plants are run withenvironmentally-friendly electrical motorswhich also secure good energy efficiency.A plant typically consists of a C96, C106 orC116 range jaw crusher for the primarystage, followed by adequate secondary andtertiary cone crushers from the tried-and-tested GP or HP cone ranges. Instead of acone crusher, a Barmac vertical impactcrusher can also be selected for the tertiarystage to secure the good end productquality and cubicity. Inclined CVB screensclassify the material, and feeding ishandled by either small dump trucks orfront wheel loaders.

In addition to the products, Metso and itsworldwide local network secures thesupervision of the erection andcommissioning of the plant and offerscomprehensive and continuous after salesservice, including spare and wear parts, andall maintenance services tailored to thecustomer’s need. ■

RoadsCONSTRUCTION

Indian tech getsglobal success

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CONSTRUCTIONTransport

43African Review of Business and Technology - February 2014

Davinomixer ItalyWeb : www.davinomixer.comE-mail : [email protected]

www.africanreview.com

Aconsortium led by Aurecon has, sinceSeptember 2013, been orchestrating thedevelopment of the Ekurhuleni OR

Tambo Aerotropolis in Gauteng, South Africa. The aerotropolis concept is now

mainstream in aviation planning, and there islittle doubt that it has brought substantialeconomic and social benefits to airportowners as well as local businesses andcommunities. However, this experience haslargely been gained in the airports of Europeand North America. The EkurhuleniAerotropolis offers a unique opportunity toapply the lessons learnt at these otherairports to develop a truly African solution.

The Aurecon Consortium brings together thebest global expertise in the development andimplementation of the aerotropolis solution,with an unrivalled understanding of thechallenges and opportunities of implementingsuch a project in South Africa and in Gauteng.

What is an aerotropolis?Air travel is ubiquitous in modern life not onlyfor passenger travel, but to satisfy ourgrowing need for the just-in-time provision ofgoods and services. The consequences of thisis a dramatic increase in the number andscale of airports, their growth as sources ofemployment and increase in the consumerbase at those airports, together with thegrowth of the airport as a destination.

In modern cities, airports have thereforebecome major drivers of urban form,economic activity and city competitiveness.The aerotropolis aims to take advantage ofthese changes and optimise the positiveeffects the airport can have on the economyand on communities.

Essentially, the aerotropolis is an economicdevelopment strategy designed to increasecompetitiveness in global markets, leveragingthe access that air travel and air freight

provides to global clients.Critically, an aerotropolis doesn’t involve

simply building additional retail stores in anairport terminal or more light industrial parkson the land surrounding an airport. It is abouttaking advantage of all the economicopportunities an airport offers, reflected attimes by new physical infrastructure, but alsoby alternative retail, entertainment,employment and commercial land uses – andthese can stretch out in a radius 30km ormore from the airport itself.

The aerotropolis in emerging economiesWith aviation only starting to boom, and routes,passenger numbers and business investmentstill comparatively low in many emergingcountries, is it too early to consider theaerotropolis approach for growing economies?

Airports traditionally develop in a piece-meal fashion. Many of the world’s current

Planning an aerotropolis

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major airports started as small landing strips inthe 1920s and have grown incrementally overtime, although not always in a perfectly logicalmanner. There is extensive evidence to showthat a large portion of the cost anddevelopment inefficiencies inherent in furtherdeveloping existing airport cities come from alack of strategic planning at an early stage.Emerging economies tend to have anadvantage here as many of the new airportsare taking place as greenfield developments,with relatively modest current infrastructure.Where the opportunity for economic growthexists, early planning will therefore enable thatgrowth to be strategically developed, mademore attractive and maximised.

The aerotropolis planning processAerotropolis development embraces urbanand regional planning, but with a strongfocus on how these can be used to enablestrategic economic development. Theultimate goal is to maximise the economiccompetitiveness, attractiveness and growthof the city and its surrounding regionthrough the identification of the optimal mixof land uses and infrastructure investments.The nature of these investments, how theyare financed, where they are made, their

timing, how they relate to the broadereconomy and their alignment with economicand social sustainability, are all key outcomesof the planning process.

The planning process for the aerotropolis in

Ekurhuleni will follow a process ofinformation gathering, analysis, scenarioplanning, evaluation and selection. Whatmatters most is the ‘who’, ‘what’ and ‘how’included in this process. ■

TransportCONSTRUCTION

44 African Review of Business and Technology - February 2014

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“It’s a challenging prospect, and a great responsibility, to deliver a project as comprehensive as this.” - Matt Coetzee,Aurecon urbanisation competency leader.

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RMA Automotive, a member of RMAGroup and a leading provider ofpurpose-built vehicles to clients in

emerging markets, is exhibiting its modifiedvehicle solutions at the 20th Annual MiningIndaba 2014 in Cape Town, South Africa.

RMA Automotive is showcasing its latestmine site vehicle modifications and fleetsolutions, including its new Ford Ranger MineSite Heavy Duty Vehicle. The companybolsters its portfolio, too, with excellentaftersales support - including vehicletracking, maintenance, fleet rentals, finance,service, repair and logistics – designed to

keep RMA Automotive clients’ operationalwheels rolling.

Mining Indaba is the world’s must-visitmining event, connecting professionalsacross the global mining industry at thelargest industry happening of its kind.Africa’s largest mining and industrial forumis being held from 3-6 February 2014,drawing key mining stakeholders anddecision-makers from across Africa and theworld. Last year, Mining Indaba attracted7,800 individuals representing 1,500

companies from 100 countries, plus 45government delegations – it is where theworld connects to African mining, and thisyear is set to be the biggest yet.

RMA Automotive invites existing and newcustomers to join the networking andrelationship-building forum that is the 20thAnnual Mining Indaba: Investing in African2014, where it has been a key exhibitor forfour years.

www.rmaautomotive.net

MININGTransport

45African Review of Business and Technology - February 2014www.africanreview.com

Automotive excellence

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Ivanhoe Mines’ (IM) executive chairman,Robert Friedland, and CEO, Lars-EricJohansson, confirmed recently that the

company’s ongoing dewatering programmehas achieved its key initial objective ofrestoring access to the main undergroundworking level of the historic, high-gradeKipushi copper-zinc-germanium-lead andprecious-metals mine in the DR Congo.

The water level, which reached 851metres below surface at its peak, now hasbeen reduced to the mine’s main workinglevel at 1,150 metres below surface. Thisprogress puts the company in a position tobegin its planned, 20,000-metreunderground diamond-drilling programmeearly in 2014. The programme is designed toconfirm the mine’s estimated, remaininghigh-grade resources - which were includedin the September 2012 Kipushi TechnicalReport prepared by IMC Group Consulting -and to seek to further expand the resourceson strike and at depth.

“Steelwork and equipment are beingprogressively replaced and upgraded as thewater level drops, providing access fordrilling and advancing us to a verysignificant milestone in the redevelopmentof the Kipushi Mine,” said Johansson.

“Now we are in a position to begin ouraggressive drilling programme, which webelieve will confirm and expand the mine’shistorical resources and set the stage forKipushi to return to production as one ofthe world’s highest-grade mines.”

100-hole underground drillingprogrammeIM’s 2014 drilling programme is scheduledto complete approximately 100 holestotalling more than 20,000 metres. Amongthe programme’s objectives is to conductconfirmatory drilling to validate thehistorical resources within Kipushi’s Big Zinc

and Fault zones and qualify them as currentresources in conformance with standardsestablished by the Canadian Institute ofMining, Metallurgy and Petroleum (CIM).

Previous mining at Kipushi wasconducted to a below-surface depth of1,207 metres on the Kipushi Fault Zone, adeposit of high-grade, copper-zinc-leadmineralisation that has a strike length of600 metres. The Fault Zone is known toextend to at least 1,800 metres belowsurface, based on drilling reports by state-owned mining company Gécamines (LaGénérale des Carrières et des Mines). 

Kipushi also contains the Big Zinc, anextremely high-grade zinc deposit, adjacentto the Fault Zone, that was discoveredshortly before the mine ceased productionin 1993 and has never been mined. From itstop at approximately the 1,200-metre level,the Big Zinc Deposit extends downward to

at least the 1,640-metre level, as indicatedby Gécamines’ drilling. 

Accessible from existing undergroundworkings, the Big Zinc has a strike length ofat least 100 metres, a true thicknesscalculated at 40 to 80 metres and is open todepth. Gécamines also reported thatmultiple, steeply-dipping, Big Zincexploratory holes intersected exceptionallyhigh-grade zinc mineralisation, grading 42per cent to 45 per cent zinc, between the1,375-metre and 1,600-metre levels, withestimated, apparent thicknesses of between60 and 100 metres. Ivanhoe’s planned 2014drilling programme also is designed to:● Conduct extension drilling to test and

upgrade the deeper portions of the BigZinc and Fault zones, below the 1,500-metre level, that previously wereclassified as Inferred Resources.

● Conduct exploration drilling to test areas

DrillingMINING

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Restoring undergroundaccess at KipushiIvanhoe Mines make progress with dewatering at the Kipushi mine in DRCongo, ahead of a 20,000-metre drilling programme for high-grade zincand copper resources

Kipushi cross-section showing current water level and unmined Big Zinc Discovery

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MININGDrilling

47

that have not been previously evaluated,such as the deeper portions of the FaultZone and extensions to the high-gradecopper mineralisation of the mine’sNorthern Deposit.

● Obtain large-diameter drill core from theBig Zinc for confirmatory metallurgy testwork.

New, underground drill holes also mayprovide a platform for geophysicalexploration of Kipushi’s deep mineralpotential, leveraging IM’s proprietary in-house expertise. Kipushi has never beenevaluated using modern geophysicaltechniques. Most of the undergroundinfrastructure already is in place to supportthe drilling programme.

The majority of the drilling will beconducted from sites on the hanging-walldevelopment drift at the 1,270-metre leveland from the footwall ramp below the 1,150-metre level. Initial drilling will start on the1,215-metre level until access is available onthe 1,270-metre level. A 280-metre step-backextension of the drift also will be driven toallow the drill crews to test the down-dipextensions of the Big Zinc and Fault zones.Independent consultant MSA Group of

South Africa has been appointed to preparea current estimate of the Big Zinc resourcesto CIM standards following completion ofthe confirmation drilling programme.

Production history at Kipushi From its start-up in 1924 as the PrinceLéopold Mine, Kipushi produced a total of6.6mn tonnes of zinc and four million tonnesof copper - from 60mn tonnes of ore grading11 per cent zinc and approximately sevenper cent copper - until operations werehalted in 1993 due to political instability. Themine also produced 278 tonnes ofgermanium between 1956 and 1978.

Underground workings were extensivelyflooded during Kipushi’s 18 years of care-

and-maintenance as a former state-ownedasset before IM acquired a 68 per centinterest in the mine in 2011. Gécaminesretains a 32 per cent interest in the mine. Inaddition to the recorded production ofcopper, zinc, lead and germanium, historicalGécamines mine-level plans for Kipushi alsoreported the presence of precious metals.

There is no formal record of gold and silverproduction; the concentrate was shipped toBelgium and the recovery of precious metalswas not disclosed during the colonial era.

IMC Group Consulting, which prepared thecurrent Kipushi Technical Report, considersthe historical estimate prepared by TechproMining and Metallurgy in 1997 (see Fig. 1) tobe the most relevant and reliable. ■

African Review of Business and Technology - February 2014www.africanreview.com

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Resource Category Tonnes Copper (%) Zinc (%)Measured 8,899,979 2.53 9.99Indicated 8,029,127 2.09 24.21Total 16,929,106 2.32 16.76Inferred 9,046,352 1.93 23.32Totals shown above include the following Big Zinc resources:Measured 793,086 1.16 33.52Indicated 3,918,366 0.68 39.57Measured & Indicated 4,711,452 0.76 38.55

Kipushi cross-section showing current water level and unmined Big Zinc Discovery

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Thanks to Britain’s mining heritage, theUK has a long-established reputation forfirst-class engineering, construction and

infrastructure capabilities. And, today,London is known as a global centre of miningfinance, underpinned by recognisedregulatory and legal frameworks, whichprovides liquidity to international projects ofevery size. In 2012, UK-listed miningcompanies had a total market capitalisationof US$425bn — more than any other financialmarket in the world.

Yet, mining is a complex, wide-ranging andhigh value opportunity industry with diverseneeds — one that uses British innovation todeliver solutions across every part of thesector, from financing through tomaintenance services. This includes feasibilityand development studies; legal, advisory,accountancy, tax and audit services; riskmanagement, project management, bestpractice, environmental, logistics, legacymanagement and closure-planning servicesand communications strategies.

Cost controlCost efficiency and effective costmanagement are key considerations in anymining development. UK company Turner &Townsend provides programmemanagement, project services, projectcontrols and contract services to the miningindustry across the whole lifecycle of aproject, from concept to execution andbeyond. The company, which has beenworking in the mining sector for 40 years,independently represents the commercialinterests of its clients with a scalable, flexibleconsulting offer, from relatively smallassignments through to large-scale teams.

“There are two principal challenges themining industry faces at present,” says MarkWainwright, MD natural resources, Turner &Townsend. “One is depressed commodityprices, as exemplified in the gold and coalsectors; the other and interlinked factor is a lack

of capital to fund development programmes,leading to delays and/or cancellation ofprojects. What Turner & Townsend does,therefore, is offer a cost and schedule-focussedapproach, minimising the risk which could leadto overspend and overrun.”

Breadth of expertiseAtkins has long experience of working in themining sector with particular strengths in mineinfrastructure, road, rail, ports and harbours,materials handling, and energy supplies.

“The underlying challenge in the miningsector is one of commercial practicality,” saysTony Illes, growth director, industry andenvironment at Atkins. “For example, newermines tend to be located in more remoteplaces — which means supply lines will belonger and this can have a critical impact onthe financial viability of the minedevelopment. Part of our job, therefore, is tomake infrastructure as cost-efficient aspossible, while ensuring it is fit for purposeacross the lifespan of the mine itself. Thisrequires a breadth of skills, from experienceof working in inhospitable landscapes rightthe way through to understanding the tax

implications of individual countries.”

Realising potentialBritish materials and solutions are also indemand by the mining industry. In July 2013, itwas announced that Polypipe, the UK’s largestmanufacturer of plastic piping systems, is setto expand its presence in the African marketwith a particular focus on the mining industry,having already secured contracts to supplypipework systems to major mining projects inKenya and Sierra Leone.

It was after delivering to the Tonkilili minein Sierra Leone that Polypipe fully realised theopportunity the mining sector offered thecompany. With its broad product portfolio,Polypipe offers pipework and watermanagement systems to meet the needs ofthe mining operations themselves, whichinvolve both pressurised pumping andgravity systems and mining process pipeworkas well as water supply and drainage systemsfor the construction of buildings, offices andaccommodation complexes, together withdrainage systems for the infrastructurerequired to support the mine.

“In territories where water is in short

ServicesMINING

48

Superior partners in mineral projectsBritish companies continue to offer a full range of professional services toAfrica’s mining industry

The Tonkilili iron oremine in Sierra Leone

African Review of Business and Technology - February 2014 www.africanreview.com

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supply, and with processes that place highdemands on water usage, effective watermanagement in large-scale miningoperations is essential,” says Polypipe exportsales manager, Philip Wood.

Education provisionThe UK is also a world-leader in academic andcorporate research, education provision andknowledge transfer, maximising local content foremployment in communities and businesses.

Many of the UK’s universities havegeoscience, minerals and materials andengineering research centres that conductpure and applied research into every facet ofthe mining industry, including low-carbontechnologies, sustainability and biodiversityand water and waste resources management.

Camborne School of Mines at the UK-basedUniversity of Exeter is recognised by theindustry as one of the world’s leading miningschools. As a result it works with local, nationaland international business, providing a rangeof services to promote advances insustainable mining, geological explorationand renewable energy; while universitiesincluding Derby, Imperial College andLeicester, provide company-specific blendedlearning courses to miners, mining support

companies and the mining supply chain.

Certainty of deliveryBritish company Dawnus, founded in 2001and now the fastest-growing constructioncompany in the UK, provides three mainservices to the mining industry: theconstruction of all civil engineering andbuilding infrastructure needed for a mine’sdevelopment and operation includingmaintenance (port, rail, roads, dams, tailingsdams, buildings, civil and structural work formine process plants and quarrying services);contract mining; plus geotechnical servicesincluding ground investigation.

When African Minerals Ltd in Sierra Leonewas looking for reliable contractors to deliverthe infrastructure for its Tonkolili Iron OreProject in 2010, Dawnus — which had neverworked in the mining industry before — wonthe tender, based on its successful delivery ofa liquid natural gas project in the UK.

“Africa was just the opening we required asmining can be a difficult sector to enter withouta track record,” says Richard Davies,international director at Dawnus. “Our clientsinvest large sums of capital and certainty ofdelivery in terms of safety, quality, time andbudget is key. We have found that within the

mining community track record and reputationto deliver is vital. We have seen the benefit.”

Enhanced reputationA young market such as Sierra Leone presentsmany opportunities for UK businesses; yet itbrings challenges, too, such as skills shortages.“That is why we have invested heavily intraining and created training schools to up-skillthe workforce,” says Davies. “In Sierra Leonealone we have trained over 1,500 nationals. Wehave also invested heavily in our supportservices such as logistics, which cannot beunder-estimated in terms of the infrastructureneeded to service a large project.”

In Sierra Leone, Dawnus’ school to train plantoperators has been accredited by the NationalPlant Operators Registration Scheme Ltd.

“Our philosophy of implementing a directdelivery model and directly employing ourworkforce has also been a big successfactor in an environment where you have tobe able to adapt quickly,” says Davies. “It hasprovided us with better control inimplementing training programmes andstandards. It also has wider social benefitsto the local community, which hasenhanced our reputation as being seen asan employer of choice.” ■

MININGServices

49African Review of Business and Technology - February 2014www.africanreview.com

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Cronimet Mining-Power Solutions (CRM- Power Solutions) specialises in thedevelopment, financing, integration,

construction and operation of hybrid powerfacilities and renewable energy infrastructure.A subsidiary company of Cronimet MiningGroup, CRM-Power Solutions is led by RollieArmstrong, the company’s managing director,who spoke recently to African Review at hisoffices in Munich, Germany. With satelliteoffices in South Africa and Rwanda, MrArmstrong spoke of achievements made byCRM-Power Solutions in enabling renewableenergy provision for the mining sector - andwhy he expects the company to generatesignificant business in Africa in 2014 andbeyond, through its innovative approach toenergy financing and management.

A prime example of PV innovationThe company’s reference projects for ground-mounted solar systems include workundertaken over four months in 2012 atThabazimbi, South Africa, where a 1MW

installation serves a chromium mine operatedby Cronimet Chrome Mining SA (Pty in SouthAfrica’s Limpopo Province. CRM-PowerSolutions was co-development partner on theproject with Solea Renewables. Thabazimbirepresents the world’s largest solar PV-dieselhybrid facility, comprising 4,170 solar panels- producing gigawatt hours of solar energyper year, displacing in excess of 450,000litres of diesel and 2,000 tons of carbondioxide annually. The photovoltaic (PV) powersystem introduced at Thabazimbi was theworld’s first fully-operational utility-scalecaptive PV/Diesel hybrid power system oncompletion. It was built with 4,158 Jinko

Solar JKM240P-60 PV panels, 63 SunnyTripower STP 17000 TL sting inverters, andtwo Perkins 800 kVA generators. Completedin November 2012, commissioned a monthlater, it has complemented the mine’sprimary Diesel energy supply.

Mr Armstrong is encouraged by theprospects following the Thabazimbi project,which is ideally located to showcase PVinnovation. Limpopo’s earth is rich, with 12different minerals being extracted byapproximately 70 mines operating in theprovince. To indicate the scale of significanceof minerals to the provincial economy, Limpopohas 41 per cent of South Africa's platinumgroup metals, 90 per cent of South Africa's redgranite resources and 50 per cent of thecountry's coal reserves. (Source: LimpopoBusiness 2012) Mine owners examining theThabazimbi facility may be interested to seehow CRM-Power can help them reduce theirreliance on national grid supply operated byEskom - the South African electricity utility - orto reduce their carbon footprints. ■

EnergyMINING

50 African Review of Business and Technology - February 2014 www.africanreview.com

An ideal PV installation

The innovative PV-Diesel hybrid facility at Cronimet'sThabazimbi Chromium mine in the Limpopo province

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MININGMining Indaba

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Corporate concerns

African Review of Business and Technology - February 2014www.africanreview.com

Over 19 years, the annual Investing inAfrican Mining Indaba, which isorganised by Mining Indaba LLC, has

channelled billions of dollars into the Africanmining value chain. Mining Indaba enablescompanies to present their credentials to theinvestor community, initiate and close dealswith other industry players, promote theiroperations and offerings to thousands ofglobal professionals on multiple platforms -and share knowledge of developments andbest practices.

The conference at the 20th annualInvesting in African Mining Indaba - takingplace in Cape Town, South Africa, 3-6February - offers content that has becomepopular throughout the years, sessionsoffering variety, value and vision. Theprogramme has been designed to deliver theinformation relevant to a global audience andalso to create critical networkingopportunities to establish and nurture theimportant business relationships.

Renowned for expertiseThere is much to live up to. The MiningIndaba conference programme has seenmany renowned international macro-economic experts, CEOs from some of theworld’s largest mining houses, andgovernment dignitaries. The 2013programme included distinguishedspeakers such as:

● HE Mrs Susan Shabangu, Minister of MineralResources, Republic of South Africa.

● HE Mr Trevor Manuel, Minister in thePresidency for National PlanningCommission, Republic of South Africa.

● Cynthia Carroll, CEO of AngloAmerican.● Mark Cutifani, CEO of AngloGold Ashanti.● Robert M Friedland, executive chairman

and founder at Ivanplats Limited.

The 2014 conference programme addressescurrent concerns including cross-continentalbusiness relationships and commoditiesmarkets’ performances. Keynote speakersscheduled this year include: Graham Briggs,CEO of Harmony Gold Mining CompanyLimited; Phil Newman, CEO of CRUStrategies; and Sipho Nkosi, CEO of ExxaroResources Limited. ■

Investing in African Mining Indaba addresses keyconcerns affecting the continent’s operations

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At the Intermat Middle East Exhibition,held recently in Abu Dhabi, the star turnof the Bobcat display on the stand for

Kanoo Machinery, the Authorised Bobcatdealer for the UAE, was the new Bobcat T4018018 metre telescopic handler - Bobcat’s largestrigid frame telescopic handler. It joins the newT40140 14 metre model in the Bobcat’s currentoffering. Both telehandlers have increasedmaximum lifting heights and are based on anew easy-to-use design that provides class-leading efficiency and productivity backed byadvanced safety systems.

The T40180 telehandler has a maximum liftcapacity of four tonnes and a maximum liftheight of 17.52 metres. The lift capacity atmaximum lift height is 2.5 tonne, while atmaximum reach (13.7 metres), the liftcapacity is 560 kg. Unloaded, the T40180weighs 10.79 tonnes and provides a crowdingforce of 12300 daN.

For the T40140 telehandler, the maximumlift capacity is 4.1 tonnes and the maximumlift height is 13.71 metres. The capacity atmaximum lift height is four tonnes, while atmaximum reach (10.43 metres), the capacityis 1.3 tonnes. Unloaded, the T40140 weighs10.29 tonnes and provides a tilt crowdingforce of 12300 daN.

Market-leading load chart performanceThe new T40180 and T40140 models delivermarket-leading load chart performance intheir classes, when operating on tyres alone,where the high stability of the telehandlers

ensures minimal loss of lift height andcapacity. As a result, the T40180 telehandlerhas an unmatched maximum lifting height of16.2 metre when operated on tyres, whilstthe new T40140 model offers the highest liftcapacity of 4.1 tonnes.

The unique, patented Bobcat side shiftsystem is a standard feature on the T40180and T40140 models, ensuring there is no needto reposition the machine if it is not alignedwith an opening, providing maximumflexibility with a +/- 700 mm side shift. This iscombined with the unique integrated framelevelling system which works independentlyof the main frame to provide a tilt correctionon inclined surfaces of +/- 4o on tyres and upto +/- 12o on stabilisers for safe, optimumpositioning of loads.

Loaders for cement shipsAnother development, which offers anexample of how new installations can useBobcat equipment to support transitoperations, is the purchase by Scotline Ltd ofa new Bobcat S130 skid-steer loader forshiptrimming work at a cement installationat Scotline’s Rochester Transit Terminal inKent in the UK.

When a cement ship docks at theScotline Transit Terminal, most of theunloading of the cement in the hold iscarried out by a trailer-mounted extractionsystem on the dockside, which pumpscement from the hold via a new pipelinesystem to four large silos, from where it isloaded via a hopper into lorries for supplyto customers.

As the hold on the cement ship empties,there comes a point where the dischargetube cannot reach the corners and thisleaves a significant amount of cementremaining in the hold. At this point, theBobcat S130 skid-steer loader, which isequipped with an optional front door, islowered by crane into the hold, where it firstforms new mounds of cement in the centreof the hold for the discharge tube to extractand is then used to ensure that the hold iscleaned out as much as possible.

Ian Gould, purchasing manager at Scotline,said, “We are very pleased with theperformance of the Bobcat S130 loader whichhas been designed specifically with thedurability and reliability you need for toughapplications like this.” ■

SolutionsLOGISTICS

52

Handling and loadingBobcat introduces new equipment to move materials more productively

African Review of Business and Technology - February 2014 www.africanreview.com

A new Bobcat S130 skid-steer loader,bought to support shiptrimming work

The new Bobcat T40180 18 metre - Bobcat’slargest rigid frame telescopic handler

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SOLUTIONS

African Review of Business and Technology - February 2014www.africanreview.com

Solar

Mersen has introduced products for the photovoltaic (PV) HelioProtection programme,which has an electronic protection system against electrocution hazards on PV

installations, complying with the evolution of safety standards in 2013 and 2014 in variouscountries (UTE, VDE, UL), for public buildings, sensible installations and rooftop applications.

www.mersen.com

Safety solution for PV installationsSpringtechnology forsolar invertersSemikron Electronics has introduceduser-friendly spring technology for powerand control terminals as well as simple,cost-effective and solder-free single-screwassembly of circuit boards, cooling unitsand modules - MiniSKiiP, which is primarilyused in solar inverters and power supplies.Following the power range of up to 40 kW,the MiniSKiiP is now available for powerranges up to 90 kW.

www.semikron.com

Panasonic Corporation has recently launcheda project to provide new solar LED lantern thatwill light dark areas in Africa and Asia. The BG-BL03 solar lantern can be charged up in just sixhours, and it even doubles as a power source tocharge mobile devices. It has a built-inrechargeable battery that is fed with solarenergy from from the included photovoltaicpanel. Once the sun has set, the Solar Lanterncan provide 360 degrees of illumination, tobrighten every corner of a room. When fullycharged, the lantern can provide six hours ofuninterrupted light at maximum brightness,and it lasts even longer if the brightness isturned down. The lantern is also rain and dustproof, making it durable enough for theroughest terrains. The 3.5W solar panel can alsocharge small devices through a USB port.

www.panasonic.net

The MiniSKiiP is primarily used in solar

inverters and power supplies

A new lantern

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Power and automationtechnology group ABB hassigned a cooperationagreement with NAPA, asoftware house supplyingsolutions for ship design andoperation. ABB and NAPA willcooperate to offer the NAPALoading Computer and theelectronic NAPA Logbook.The products will be offeredunder ABB’s VesselInformation and Control(VICO) portfolio, as part of a complete advisory solution devised to optimise ship efficiency.The NAPA Loading Computer undertakes a wide range of calculations related tohydrostatics, intact stability and ship longitudinal strength. The system is installedonboard 1,400 ships, including tankers and passenger vessels.NAPA’s Logbook offers a combination of common data storage, automation interfaces,reminders, guidelines and checklists prevents misuse and unlocks far-reaching additionalreporting capability.

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EQUIPMENT/CLASSIFIED

African Review of Business and Technology - February 2014

ABB works with NAPA on vesseladvisory solutions

Engine-maker Cummins Power Generation haslaunched its latest gas generator set product line.The new lean-burn 50 Hz products to hit the marketwill offer better transient performance andenhanced fuel capability, enabling them to run onlow methane number fuels and cut emissions,Cummins Power Generation said. The company’s newest products include a 2 MWevariant, alongside the newer 1,540 kWe and 1,750kWe models.According to Cummins Power Generation, the newmodels feature prime, peaking and combined heatand power (CHP). Their robust load handling attributes make themsuitable for remote locations where grid powercannot be used, such as mining, oil or gas fields,or in parts of the world where grid power is eitherunreliable or inaccessible. The new product line isable to run on biogases from landfill, digester andsewage sites, Cummins Power Generation said.

AMOG D'Avino Branch....................................................................................43Bank of Africa ........................................................................................................2Bell Equipment Company SA Pty Limited ..............................................41Betonblock / Legobeton BV..........................................................................53Broadcrown Ltd ................................................................................................37Dangote Group..................................................................................................13Eko Hotel and Suites........................................................................................27ELB Equipment Ltd Pty ..................................................................................47Emirates................................................................................................................56Ethiopian Airlines Enterprise ........................................................................55FLSmidth (Pty) Ltd. ..........................................................................................51GlobalTT ..............................................................................................................31Himoinsa, S.L. ........................................................................................................7Iveco SPA..............................................................................................................15Joseph Voegele AG ..........................................................................................39Labadi Beach Hotel ..........................................................................................23Metalgalante S.p.A. ..........................................................................................44Montgomery (Propak East Africa 14) ........................................................21Pan Mixers South Africa (Pty) Ltd................................................................42Pennwell Corporation (PowerGen Africa 14) ........................................29Ritchie Bros. Technical Services B.V...............................................................9SDMO Industries ..............................................................................................35Shandong Shantui Construction Machinery Imp. & Exp. Co. Ltd. ..11Structon Ltd ........................................................................................................17Su-Kam Power Systems Ltd...........................................................................36Trelawny SPT Limited ......................................................................................25Veyance Technologies ....................................................................................50Volvo Construction Equipment AB ..............................................................5Weiler GmbH ......................................................................................................45YelloGen Ltd........................................................................................................34Zest WEG Group ................................................................................................49

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SHANGHAI

Explore the modern heart of Chinawith Ethiopian

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