JULY 2016 - Africa Engineer · 2016-11-10 · JULY 2016. 2 June 2016 Africa Engineer Africa...

JULY 2016

3J u n e 2 0 1 6 | 2 | J u n e 2 0 1 6 Africa Engineer Africa Engineer

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Editor’s Note

ContentsThe recent state visit to Nigeria by President Jacob Zuma marked the beginning of a new chapter in relations between Nigeria and South Africa.The visit also offered the opportunity for Nigeria and South Africa to renew the pledge of partnership on a number of key issues including mining. An existing 2013 MoU outlining areas of partnership in the fields of Geology, Mining, Mineral Processing and Metallurgy, which had not been implemented, was resuscitated. President Buhari thus mandated the Ministry of Solid Minerals Development to work with our South African counterparts to pursue the full implementation of the Agreement.Glencore mine is set to close due to the meltdown in commodity prices linked to slowing demand from China. It has also slashed production of copper and oil as well as cutting investment and costs.

Glencore is one of Australia’s largest coal producers running 18 mines and employing some 7,650 workers.Global metallurgical coal prices have dropped from more than $300 a tonne in 2011 to around $94 in step with weakening steel prices.The successful development of the giant Kibali gold mine in the northeast province of the DRC has demonstrated the capacity of mining to boost the economies of African countries and improve the lives of their people, says Randgold Resources chief executive Mark Bristow.With a resource base of 20 million ounces of gold and reserves of 11 million ounces, the Kibali mine ranks as one of the largest gold mining projects in the world.Excessive shaft-sinking costs and regulation in SA has driven investors to the next best gold mining region.Western Africa has surpassed Southern Africa as the continent’s gold-mining hub. Numerous new gold-mining projects are being developed in West Africa, particularly in Ghana, Burkina Faso, Mali, Mauritania, Liberia and Sierra Leone.The Timetric report also mentions that the government’s investment in other sectors, such as housing and energy, and modernization of infrastructure will have a positive impact on the country’s economy and construction industry.Investments in affordable housing and educational infrastructure segment have also been announced, with the authorities investing ZAR8.3bn ($767.8m) in educational building construction by 2023. Plans have also been initiated to promote renewable energy infrastructure.Construction has begun on the $20 million (R314m) 147-room City Lodge Hotel in Dar es Salaam, Tanzania, for the JSE-listed hotel group.The development forms part of the City Lodge Hotels Group’s R1 billion expansion into Africa.A brand new $560m airport on a remote British island may be forever mothballed over fears dangerous prevailing winds could flip incoming passenger jets.

The cliff-top airport on St Helena, which lies 1800km off the African coast and 2900km east of Brazil, was scheduled to open in May.But heat is now coming on the UK government who went ahead with construction, despite repeated warnings from pilots who were adamant the exposed site was a passenger jet disaster waiting to happen.Mega dam on Congo river to produce electricity equal to 20 large nuclear power stations, but critics say it will displace 60,000 people and wreck the ecosystem.The largest dam in the world is set to begin construction within months and could be generating electricity in under five years. But 35,000 people may have to be relocated and it could be built without any environmental or social impact surveys, say critics.The $14bn (£9.5bn) Inga 3 project, the first part of the mega-project, is being fast-tracked by the Democratic Republic of Congo government will span one channel of the vast river Congo at Inga Falls. It involves a large dam and a 4,800MW hydroelectric plant.But subsequent phases, together costing about $100bn, could eventually span the Congo River, the world’s second largest by volume.The recent collapse of a multi-storey building under construction at Makerere yet again wounded the structural integrity of Kampala’s rising skyline.A fortnight later, the loud bang of a six-storey building’s concrete crumbling amid a torrential downpour left Nairobi trembling through the night.With East Africa’s cities dotted with a construction boom, the mishaps that have befallen structures in Kampala remain unsettling. Although inept enforcement takes the spotlight for building disasters, relatable influences have a stake in the safety of the built environment.The American power and energy giant, General Electric, has decided to club together with Pan-African multi-sector business services company Mara Group to make more inroads in Africa through investment in infrastructure, a domain still infant on the black continent.Africa was presented with its largest energy deal ever - a $12 billion package from the Africa Development Bank - as some leaders fought off pressure from environmentalists concerned about the threat of an impending construction boom of power dams, reiterating their position that the continent was simply tired of being in the dark.

The African Union (AU) has commended China for the overall development support China provides to Africa in general, and to capacity building of the continent in information and communication technology (ICT) sector in particular.A recent study conducted by The Software Alliance, also commonly referred to as the BSA, found that South Africa has drastically improved and strengthened its position in the global ranking with regards to its cloud computing policies. South Africa moved six places up from 2013, securing its 14th place out of 24 leading IT economies. This signifies the country’s adoption of cloud computing technology, a cost-effective solution that is key in building the emerging economy.A safety monitoring method called On-Site Visualization has been implemented in metro system construction sites in Jakarta, Indonesia as part of a Japan International Cooperation Agency (JICA) project.

On-Site Visualization (OSV), as its name suggests, is a real-time data processing technology used to check safety levels at construction sites.Building companies are trying out polystyrene construction, which offers good insulation, and uses less water and woodThis relatively new construction technology, using polystyrene, is gaining a foothold in Kenya’s fast-expanding housing sector. The panels for building are made of a light cellular plastic, a by-product of oil refining, which consists of mini spherical particles containing about 98 percent air.General Motors has adjusted output levels at its South African assembly operations and is considering options including voluntary job cuts as the automaker prepares for a further drop in local sales.

Hope you are going to enjoy this issue and be informed.

BlessingAfrica Engineer Magazine Editor

06 | MINING06 Nigeria and South Africa: Forging bonds of mutual prosperity in mining

11 De Beers to sell 50% stake in Botswana’s Morupule coal mine

16 | CONSTRUCTION16 Construction of Suez: Lessons for Africa

22 Does the Dangote- FNG concrete agreement signal an end to asphalt roads in Nigeria?

27 | ENERGY

27 Morocco, Portugal Mulling Undersea Electricity Link

29 Apple forms energy unit with plans to sell excess renewable power

36 | ICT

37 eLearning Africa 2016: resettlement of ICT education and training in Cairo

39 Cyber threat looms over Africa

44 | AUTOMOTIVE

44 GM revises South Africa output schedule as economy slows

44 Latin America pips Africa to be India’s largest auto export market

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The recent state visit to Nigeria by President Jacob Zuma marked the beginning of a new chapter in relations between Nigeria and South Africa. Both countries have shared a sometimes-turbulent history; we have also at different times revelled in the joy of aligned moral purpose – at some point towards the dismantling of apartheid, at some other point in the struggle to enthrone democracy.

During the visit, both President Zuma and his host President Muhammadu Buhari made it a point of duty to strengthen the historical bonds of friendship between the peoples of Africa’s two largest economies. The rapprochement between both countries is one of the results of President Buhari’s economic diplomacy, which has focused on rebuilding Nigeria’s image and relationships in the comity of nations. This development can only result in positive outcomes for both economies, and also ensure alignment on the strategic future that we believe offers Africa its full potential.

The visit also offered the opportunity for Nigeria and South Africa to renew the pledge of partnership on a number of key issues including mining. An existing 2013 MoU outlining areas of partnership in the fields of Geology, Mining, Mineral Processing and Metallurgy, which had not been implemented, was resuscitated. President Buhari thus mandated the Ministry of Solid Minerals Development to work with our South African counterparts to pursue the full implementation of the Agreement.

Having identified South Africa as one of our strategic partners towards growing our mining sector, and on the back of improved diplomatic relations, I recently led a small delegation on a two-day working visit to South Africa, during which I met with my counterpart, the Minister of Mineral Resources, Hon. Mosebenzi Joseph Zwane, as well

as the leadership of mining-related government entities, mining industry leaders and experts.Our delegation gained a lot of insights from the knowledge sharing sessions with the leadership of the Department of Mineral Resources, Council of Geosciences, MINTEK and other government entities, and the progressive discussions on opportunities of collaboration with some of South Africa’s finance institutions – especially the Industrial Development Corporation (IDC).Accordingly, the Ministry of Solid Minerals Development has outlined details of the implementation plan for the 2013 MoU on Mining which provides details of the priority areas Nigeria wishes to benefit from the South African mining industry’s competitive advantage.

These include: Advanced Geological Surveys – detailed geo-sciences data generation; data interpretation analysis and application; assistance in the accreditation of the Geosciences Analytical Metallurgical Laboratories in Kaduna; exploration data reporting standards, etc.; Mining Governance – the review of existing legal and legislative framework; improved mines inspectorate operations and technologies; upgrading and management of cadastral processes and operations etc.; Mineral Processing and Development – processing of industrial Minerals; Beneficiation processes and technologies; value addition, quality assurance and standards in mineral development, etc.

Other areas include Metallurgy – improvement of metallurgical inspectorate operations and technologies; indigenous professional skill acquisition and technology transfer; metallurgical processes; steel making technologies etc.; Artisanal and Small Scale Mining Operation – production/supply of small and medium sized plants and machinery for small and mid-tier mining and processing e.g. the Igoli gold processing mill;

development of industrial clusters in downstream mineral fabrication and manufacturing; Environmental Safety and Sustainability – enforcement of environmental safety and compliance regulations; review of sustainability frameworks and regulations; remediation processes etc.

Nigeria is also looking to benefit from the wealth of Human Capital Resource in South Africa’s mining industry in areas such as – capacity building in global best practices along the value chain of the mining industry – occupational, health, safety and environment (OHSE), mines inspectorate and revenue collection, mineral production assessment, ASM management, steel and metallurgical inspectorate technology and regulation, etc.; as well as benefiting from technical assistance in the development of coal-to-power projects in Nigeria as part of our objectives to achieve a vibrant energy mix and realize our target of 10,000 mw of energy by 2019. The ministry also seeks to learn from the optimal organization of private sector players in the South African mining space.Conversely as South Africa’s putative oil industry gets off the ground, Nigeria should share the lessons that our experience affords us. Nigeria’s oil history, while it has a number of prominent missteps, still contains critical lessons, which should be shared, together with our expertise in the Oil and Gas industry built over the years.

For the new resource economy to benefit both local and global stakeholders, we are taking an activist posture towards issues of developing local content and ensuring a transfer of skills and technology that will be to our nation’s advantage in the medium and long term. While we are committed to maintaining a liberal business environment, we are also mindful that the new resource economy results in a win-win situation for all stakeholders.This is why we intend to see to it that host communities are directly and

MININGNigeria and South Africa: Forging bonds of mutual prosperity in mining

positively impacted by the activities that will be undertaken in their domains. The historic restiveness in the Niger Delta and labour related uprisings in the South African mining industry can be put permanently in the past with this new approach to governance of the extractives industries.

Today, the continent’s fortunes appear partially stalled. Pundits wonder if our work of reform is entirely hostage to shrinking commodities demand from China and India. The decline the Naira and the Rand have suffered in the past year is partially linked to the commodities narrative. Nonetheless, the truth is that Africa’s narrative of prosperity has deeper roots, and is firmly in our control.

Nigeria has our eyes set on a rebound in the global commodities market, hopefully sooner than later, and we are doing everything possible in the

interim to ensure we position our industry for market dominance when that time comes.We will work towards stoking aggregate demand and restructuring entire swathes of our societies to prepare them for the next generation of jobs, and delivering a joined up locomotive of growth. Hopefully, other African countries will take a cue from the renewed commitment of our countries to partner towards building the capabilities to create jobs and broaden the economic opportunities available to young Nigerians and South Africans. The aggressive integration of our economies will also create new corridors of growth for our neighbours and partners in both the ECOWAS and SADC regions.We will find smart mechanisms for leveraging each other’s key strengths and easing the modalities for engagement between businesses in both countries e.g. visa liberalization for skilled mining and petroleum workers to help speed transitions as

well as maintain growth momentum. We will also push our citizens to interact more intensively, whether it is in vacationing in each other’s countries or forming new personal networks. A shared experience and prosperity is the key to a new wave of African economic growth, and our Presidents are determined to deliver on that pledge.

As we welcome South Africa’s delegates to Abuja on a follow-up technical visit this week, and as momentum gathers towards the Nigeria – South Africa Bi-National Commission holding in August this year, we will continue to explore means of creatively building bridges between our countries towards modeling the possibilities that African integration offers for shared growth and prosperity.

Dr. Fayemi is Minister of Solid Minerals Development.

The successful development of the giant Kibali gold mine in the northeast province of the DRC has demonstrated the capacity of mining to boost the economies of African countries and improve the lives of their people, says Randgold Resources chief executive Mark Bristow.

Bristow was speaking to local media on a facility visit to the mine shortly after arriving there with his BoyzonBikes fundraising motorbike ride. Titled Safari Kwa Bora Afrika -- Swahili for Journey for a Better Africa -- the more than 8 000 kilometre charity ride is crossing the continent from the east coast of Kenya to the west coast of the DRC through dense equatorial jungle. The fourth of its kind Bristow has undertaken, it aims to raise $3 million for the independent charitable foundation Nos Vies en Partage that Randgold established in 2014. The foundation plans to donate this to programmes

which support neglected children and abused women across Africa, with this year’s focus being the widows and orphans of past conflicts and the rehabilitation of child soldiers.

With a resource base of 20 million ounces of gold and reserves of 11 million ounces, the Kibali mine ranks as one of the largest gold mining projects in the world. While it will only be completely developed by 2018, when its underground operation comes into full production, it is already producing more than 600 000 ounces of gold annually and employs more than 4 000 people, almost all Congolese nationals.Bristow said Kibali represents an investment of $1.8 billion to date of which some $1 billion has already been spent with Congolese contractors and suppliers, many of whom have established local operations leading to the creation of a new economic frontier in this remote region of the country.

“Kibali has brought new life and opportunity to this province, resettling more than 20 000 people from very basic villages in a model town with comprehensive amenities, including provision for healthcare and education, building an effective infrastructure and attracting the providers of the goods and services required by a developing society,” he said. “That so much has been achieved in such a short time is a tribute to the cooperation Randgold has received from our DRC business partners, central and local government as well as the community. And we should not forget the vital role played by the international investors who were prepared to risk their capital on this venture.”“There have been stresses and strains along the way but, by working together towards a common goal, Randgold and Kibali’s stakeholders have been able to overcome these. It is in this same spirit of partnership

RANDGOLD RESOURCES LIMITED: KIBALI SHOWS MINING CAN HELP MAKE A BETTER AFRICA


Excessive shaft-sinking costs and regulation in SA has driven investors to the next best gold mining region.

Western Africa has surpassed Southern Africa as the continent’s gold-mining hub. Numerous new gold-mining projects are being developed in West Africa, particularly in Ghana, Burkina Faso, Mali, Mauritania, Liberia and Sierra Leone.

“West Africa is now really the hub of African gold mining,” says Brian Ziswa, lead gold analyst at global research and consulting firm Wood Mackenzie.

Between 2006 and 2015, 18 new mines have been commissioned in West Africa, versus four in South Africa, some of which have since been shut down, such as Sibanye’s Burnstone mine.

“Total production from West Africa – that is, Burkina Faso, Ghana, Guinea, Ivory Coast, Mali, Senegal and Sierra

Leone – overtook South Africa’s gold production in 2011,” says Ziswa. “This was when the region produced 195 tonnes of gold compared to 187 tonnes for South Africa. All of the

West African countries except Mali have recorded significant growth in production driven by investments in new mines.”

that Randgold is now working with the authorities and the community to unlock the potential of the northeast province’s great mineral and agricultural resources. A number of projects are already in an advanced planning stage,” he said. “The palm oil project, initiated by Kibali, progressed this week when the government issued an arête granting the project full exoneration from duties on all capital items needed in the milling and refining operations as well as the plantation establishment. A further two arêtes, regulating all fiscal and land matters, are expected shortly to complete the agreement with the government regarding the project’s investment framework.”

In a related move, it has launched a ‘good citizen’ initiative, in which Kibali is working closely with local stakeholders, security forces and civil society, to establish a structure for peaceful conflict resolution and the

maintenance of public assets and infrastructure.The company is also making a significant investment in the development of the country’s human capital by training Congolese as professional managers in line with its

policy that all its operations should be run by local nationals.“We’re not just creating jobs, we’re creating careers, and for generations to come Kibali will be managed by Congolese citizens with world-class skills,” he said.

RANDGOLD RESOURCES LIMITED: KIBALI SHOWS MINING CAN HELP MAKE A BETTER AFRICA (CONT)

WEST AFRICA IS THE CONTINENT’S GOLD MINING HUB

West African gold producers over the last ten-year (tonnes)

Source: Wood Mackenzie

Wickus Botha, Africa mining and metals leader at EY, says that while there aren’t necessarily more deposits in West Africa compared with South Africa, the region is currently a slightly better environment to operate in.

For already-established operations he says the risks are a lot more manageable in South Africa, whereas the level of uncertainty and costs involved make starting a new project riskier and more expensive.“In South Africa, once you’re past the capital investment hurdle, the risks are much more manageable,” says Botha.

But it’s very different for new capital because investors require a higher return for perceived uncertainty. And this is likely to be part of the reason why there is little investment in new projects in South Africa.Cadiz Corporate Solutions’ mining analyst Peter Major agrees, saying that the growing interest in West Africa and other African countries is largely due to the difficulty in starting new projects here.

“We’re on the phone everyday with investors calling us looking for mining projects, and their main criteria is that the projects mustn’t be in South Africa,” says Major, adding that not one gold mine shaft has been sunk here over the past ten years and that companies are simply extracting whatever is left at the existing mines.

West Africa is cheaper, but has its own faults

The key issue is that the cost of sinking shafts to access the deeper lying Witwatersrand deposits is significantly higher here than in West Africa, where most of the mineralization is sub-vertical, meaning companies can mine ore from the surface and it’s materially cheaper. But it is difficult to operate there after the operation has already been set up, due to intermittent policy fluctuations.

Botha says there is an oscillation between pro-investment and very draconian tax policies, primarily because mining revenues make up a substantial part of those economies and governments use legislation to shore up the fiscus when commodity prices drop.“Companies that set up operations in Africa have made peace with the fact that regulations oscillate and are complex. So what’s more important for them in that case, is driving down the cost of production,” says Botha, adding that although the start-up costs are high, gold mining production in West Africa is not as labour intensive and “organized labour is not as big a deal as it is here.”

Another issue for West Africa, and Africa in general, is energy security. So companies are generating their own power. EY’s business risks facing mining and metals sectors 2015 2016 report states that the current self-supply model adopted by mining and metals companies has reduced power uncertainty and price fluctuations.However, this has also been costly for companies and has not benefitted the local community. For instance, since 2000, mines in Africa spent around $15.3 billion on electricity and operating costs to install 1 590 megawatts of generating capacity, none of which has made it into a national grid – EY report

The challenges facing South Africa such as deep expensive mines, high power costs, low-productivity and under-investment are mostly unique to the country, according to Ziswa. But in West Africa, he says the biggest challenge is security, or lack thereof of, due to civil unrest – especially in certain parts of Mali. He says Burkina Faso is relatively stable given it last held elections in 2015. However Ghana is due to hold elections this year with a probability that the incumbent government could be toppled and implications for future mining policy are unclear.West African projects due to come on stream from 2016 to 2021Source: Wood Mackenzie

Ziswa says the potential returns are greater in Western Africa, where large areas have not been systematically exploited. Given the highly prospective nature of the West African gold belt, he expects to see continued growth in West Africa.Looking into the future, he says there is a significant amount of projects which are being advanced in West Africa especially Burkina Faso, which has Nordgold’s Bouly project, Endeavour Mining Corp’s Houndé operation, True Gold Mining’s Karma mine and the Yaramoko project by Roxgold Incorporated.“These projects being developed in West Africa have the potential to add 80 tonnes of gold per year by 2020. In South Africa, the only significant project being evaluated is the (Witwatersrand Consolidated Gold Resources De Bron-

Country 2006 2015 %Change

South Africa 275.1 144.5 -47.5%

Ghana 69.8 90.8 30.1%

Mali 50.0 43.5 -13.0%

Burkina Faso 1.6 35.8 2140.1%

Ivory Coast 1.3 25.9 1859.3%

Ghana 16.4 20.5 25.1%

Senegal 0.6 5.7 844.8%

Ghana - 0.1 -

Total 414.9 367.0 -11.5%

Project Country Company

Kiaka Burkina Faso B2Gold Corporation (Canada)

Houndé Burkina Faso Endeavour Mining Corporation (Canada)

Natougou Burkina Faso Semafo Inc. (Canada)

Yaoure Cote d’Ivoire Amara Mining (UK)

Sissingué Cote d’Ivoire Perseus Mining (Australia)

1 1J u n e 2 0 1 6 | 1 0 | J u n e 2 0 1 6 Africa Engineer Africa Engineer

Tanzania will provide grants to the small-scale miners’ phase III that aims in developing small-scale mining activities in the country by September this year.

This was said by the Minister of Energy and Minerals Professor Sospeter Muhongo during a meeting session which involved Regional Commissioner Office of Geita some Members of Parliament, District Commissioners of the region, representatives of the miners, Officials from Ministry of Energy and Minerals, Mineral Audit Agency Tanzania (TMAA) and State Mining Corporation (STAMICO).

The minister explained that recently he spoke with the World Bank, which has pledged to provide between $3 million (Tsh.6.6 billion) and $4 million (Tsh.8.8billion) and will be granted to different groups of miners in the country.

He added that the funds would be used also to develop seven centers of exploration and small-scale mining that will be chosen by the Ministry after evaluating the areas that should be settled. “A research will be conducted by the Agency of Geology Tanzania (GST) in those seven exemplary centers, to determine the sediment of gold contained in the relevant area before awarded to the miners,” Professor Muhongo stressed.He said that women involved in small-scale mining activities, logging and mining jewelry sculpture will also benefit from the grant aimed to increase the number of women involved in the mining industry in the country. “We are looking for these grants so that miners will move into the extraction medium level that brings more productivity and to the nation”. He commented He further explained that for medium level the exploitation and production of gold does not shake even gold price descends in the world market as production costs in the mines of the medium is low compare to large mines.

He urged the small scale miners in the country to join in groups in order to get grants because it will not offered to individuals, and insist the miners to cooperate with the STAMICO to be able to write applications to apply for grants applicable.

The World Bank through the Ministry of Energy and Minerals has continued to provide grants to small scale mining whereas in the financial year 2015/16 allocated roughly Tsh.7.2 billion that were awarded to 111 groups of miners and various services provided to the small scale mining sector.Similarly, in the financial year 2013/2014, Grants provided to Scale Miners were US $ 500,000 equivalent to roughly Tsh.1billion that was given to 11 applicants.

WEST AFRICA IS THE CONTINENT’S GOLD MINING HUB (CONT)

Merriespruit, project).”Most of the production growth is being driven by mid-tier producers, but some of the major producers such as Newmont, Goldfields, AngloGold Ashanti, Newcrest and Randgold Resources are already active in West Africa, although their production is not expected to increase by much, says Ziswa.

In terms of resource endowment, South Africa still holds the largest gold resource on the earth, but most of it is locked down at great depths within the Witwatersrand, and that is why investors are looking for cheaper alternatives.

But companies such as Goldfields, which is pioneering mechanized

mining at South Deep, have the potential to significantly boost the country`s gold production.

Nevertheless, Ziswa expects West African gold production to continue growing, forecasting 230 tonne annual production, exceeding South Africa’s 160 tonnes, by 2021.

Tahmoor mine in NSW will be closed by 2019, the Swiss-based company has said, thanks to falling prices. Glencore is to close its Tahmoor coalmine in Australia by early 2019 with the loss of 350 jobs, the latest victims of low prices hurting the sector.

Glencore, a mining and commodity trading company based in Switzerland, said it has begun consultation with the 350 employees at the coking coalmine in New South Wales.The mine has been operating since 1979 and last year produced 2.1m tonnes of metallurgical coal used in steel making.“The decision has been made as a result of continued low prices in global coal markets, which has meant the economic return from reserves still available at Tahmoor are not sufficient to warrant the investment required to mine them,” Glencore said in a statement.

Like other miners, Glencore has been hit hard by the collapse in commodity prices linked to slowing demand from China. It has also slashed production of copper and oil as well as cutting investment and costs.Glencore is one of Australia’s largest

coal producers running 18 mines and employing some 7,650 workers.Global metallurgical coal prices have dropped from more than $300 a tonne in 2011 to around $94 in step with weakening steel prices.

The leading American coal producer, Peabody Energy, filed for bankruptcy protection in April after a sharp drop in coal prices left it unable to service debt of US$10.1bn, much of it incurred for an expansion into Australia.

Last year, Chinese-controlled coalminer Yancoal Australia cut close to half the jobs at two of its collieries after losses over two years climbed to more than A$1 billion ($724.50 million).In one of the most glaring examples of exiting coal at any cost, Brazil’s Vale, sold a mothballed coalmine in Australia to a local operator for A$1. At peak coal prices, the mine was worth around A$500m.After implementation of the deal, the assets of the mine will be transferred to the newly formed MDCB.

De Beers, a unit of Anglo American has announced plans to sell its 50% stake in Morupule coal mine (MCM) in Botswana to the government.The company’s latest move is part of a plan by Anglo American to cut down its commodities portfolio.

Reuters quoted Minerals Development Company of Botswana (MDCB) CEO Paul Smith, as saying that De Beers’ stake in the mine will be transferred to company.With the acquisition of De Beers’ stake in MCM, the government’s ownership in the mine will be 100%.

TANZANIA TO PROVIDE SUBSIDIES FOR ARTISANAL MINERS THIS SEPTEMBER

GLENCORE TO CLOSE AUSTRALIAN COALMINE WITH LOSS OF 350 JOBS

DE BEERS TO SELL 50% STAKE IN BOTSWANA’S MORUPULE COAL MINE


After implementation of the deal, the assets of the mine will be transferred to the newly formed MDCB.MDCB did not disclose the price of the stake.The stake in MCM is owned by De Beers through Debswana Diamond Mining, which is a joint venture with the Government of Botswana.

MCM, which is located on the outskirts of Palapye, Botswana, commenced production in 1973 as a subsidiary of Anglo American to supply coal to Bamangwato Concessions (BCL) and the BPC power plant in Selebi Phikwe.The mine has the capacity to produce 3.2 million tonnes of coal per year.This year, Anglo American closed its Mmamabula coalfields in Botswana as part of its plans to dispose certain assets.The sale excluded De Beers platinum, as well as the company’s copper units.

Coal production in Germany is predicted to drop to 172.6 million tonnes (Mt) by 2020 due to the country’s transition to more renewable energy sources, says a report by Timetric.

Entitled ‘Coal Mining in Germany to 2020’, the report highlights that German authorities intend to reduce CO2 emissions by 40% by 2020 by replacing coal with renewable energy sources. Germany was the eighth biggest coal producer worldwide in 2014 with 185.8Mt of coal production. The country had 4.5% of the total global reserves and sixth-biggest proven coal reserves in 2014

at 40.5 billion tonnes (Bt).Germany’s power generation sector accounted for 86.3% of the total coal consumption (234.6Mt) in 2014. Changing times combined with the government’s energy transition policy resulted in a slight increase in the share of renewable sources over lignite for the first time in 2014. Renewable sources accounted for 25.7% in the power generation mix, while lignite’s share was slightly lower at 25.6%.

The shutting down of domestic mines such as Lippe, Lohberg and Walsum in North Rhine-Westphalia and Bergheim in Baden-Wurttemberg

led to a 12.8% increase in the coal imports in 2014 to 57.1Mt. The key suppliers were Russia, the US and Colombia, which contributed 55.6% to the total coal imports in 2014.The Timetric report mentions that lignite is the widely produced variety of coal used in the German power generation industry.The key firms in the country’s coal mining industry are RWE Power AG, Vattenfall GmbH and RAG AG. The Federal Ministry of Economics and Technology (FMET) and the Federal Institute for Geosciences and Natural Resources (BGR) oversee the workings of the mining industry in Germany.

South Africa-based DRA has secured a contract for the preliminary engineering and design of processing facilities for Altura Mining’s Pilgangoora lithium project in Pilbara, Western Australia. Mining at Pilgangoora is planned to be conducted by open-pit methods.The mine will also have a processing facility, which will have a feed capacity of 1.4Mt/a, producing a spodumene concentrate grading about 6% lithium oxide.Under the contract, DRA will be responsible for all engineering disciplines to a 30% level of detail, together with capital and operating cost estimates to a 10% level of precision.

DRA Pacific Region director Chad Botha said: “We are especially pleased to have been awarded the engineering and design of this significant project.“This assignment adds to DRA’s considerable track record in the design and delivery of hard rock

lithium projects, especially in the application of heavy medium separation (HMS) systems and other gravity recovery techniques.”Production of first concentrate

from Pilgangoora lithium project is expected in the third quarter of next year.Pilgangoora is wholly owned by Altura Mining, and has been increased in

DE BEERS TO SELL 50% STAKE IN BOTSWANA’S MORUPULE COAL MINE (CONT)

REPORT: COAL PRODUCTION TO FALL IN GERMANY AS IT PURSUES GREEN ALTERNATIVES

DRA TO PROVIDE ENGINEERING AND DESIGN FOR ALTURA’S PILGANGOORA LITHIUM PROJECT IN AUSTRALIA

size with a JORC mineral resource estimate of 25.2Mt at 1.23% Li20.Altura is working to develop the project and seeking the right equity investor/off take partner to maximize the project stake.

DRA’s subsidiary, Met-Chem of Canada develops hard rock lithium projects in Quebec, including beneficiation and hydrometallurgical facilities.

The current bank-lending rate of 20-27 per cent will not make mining operations profitable in Nigeria. The Zonal Chairman, Nigerian Society of Mining Engineers, Engr. Markus Pwajok, stated this when he addressed the 56th Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA) AGM/Conference in Jigawa State.

Pwajok said the mining companies and their investment funds would only go to those countries where the enabling environment would allow the private sector to flourish without hindrance. “Since mining is a capital intensive venture with long gestation

period, there should be a Minerals Development Fund, which will enable miners to access loans at low interest rate but the current bank lending rate will not make mining operations profitable.“In the past, the government had paid lip service to the development of this sector of the economy, but now that it is a very favorable alternative to the oil sector, NACCIMA should take advantage of this development and encourage its members in the mining sector to go into mining and mineral based industries,” he said.

Minister of Industry, Trade and Investment, Okechukwu Enelamah, noted that every state in Nigeria is

blessed with abundant solid mineral resources and current estimates suggest that there are no less than 44 mineral resources available in commercial quantities across Nigeria. The most prominent ones include bitumen, coal, iron ore, limestone, gold and tin.“Let me paint for you a picture of what we can do if we pay attention to our solid minerals sector. First we will create jobs, in a country that has such large pools of unemployed labour, and needs to create millions of jobs annually just to keep up with population growth.

DRA TO PROVIDE ENGINEERING AND DESIGN FOR ALTURA’S PILGANGOORA LITHIUM PROJECT IN AUSTRALIA (CONT)

NIGERIA: CURRENT LENDING RATE NOT MAKING MINING OPERATIONS PROFITABLE

AFRICA NEEDS A MINERALS BODY OF ITS OWN – EXPERTS

Open tin mine


Open tin mine Mineral experts from East Africa have proposed the formation of a continental mineral body to promote the sector and systematically break away from the “overtly exploitative” international mineral market. They argue that prices for the so-called conflict minerals - gold and the “3Ts” (tin, tantalum and tungsten) - are manipulated by powerful players in the developed world, leading to low prices.

These minerals are essential in manufacturing electronics and are in high demand by the international telecom companies like Samsung, Apple and Microsoft.“It is no secret that international mineral prices are controlled and global due diligence mechanisms are stringent on minerals from Africa. The laws don’t favour us but favour mineral consumers and suppliers in the developed world. That is why you see this unfavourable cyclical price fluctuation, which I believe, is highly controlled,” Frank Mugenyi, senior industry advisor at the African Union Commission said.“Africa needs to pull out of this exploitation and strategically reposition itself to negotiate its own minerals and be at the centre of the boom that will be created by Africa’s own demand for manufactured and industrial products.”

The World Bank projected that sub-Saharan Africa’s growth will slow in 2015 amid falling commodity prices, a realization that has already been felt across the continent.The effects of low prices have been worse on countries adjacent to the Democratic Republic of the Congo, which rely heavily on production of the so-called “conflict minerals” -- a term most used in the West, but deemed derogatory and isolative by African sector players.

In Rwanda, GDP growth in mining has been on a downward spiral, slowing from 11 per cent in 2014 to settle at -9 percent, according to the Ministry of Finance.Investment in the sector has also stalled and many artisanal miners have given up the trade, much as there is hope that the curve will start to rise in the next year.“Things will begin to improve with time. Currently, the sector has more than 480 companies. We intend to develop the mining business to a sustainable level because it is one of the prime sectors that contribute to the economy greatly. It is currently the second biggest foreign exchange earner in the country,” Jean Malic Kalima, president of Rwanda Mining Association said.

Many mining companies in the region are counting losses. For example in

Kenya, the leading soda ash miner -- Fluorspar Company -- suspended its operations in June last year owing to sustained low global prices for its produces.Breaking away from the international market is however seen as a radical move by some experts, who insist Africa cannot escape the global market.“Some international mining frameworks put Africa in a disadvantaged position and make it extremely difficult to compete with mineral producers in China, the US and Europe. Much as that is true, breaking away from the international market is not practical. What we can do is lobby for stronger continental and regional laws that guarantee equality on the negotiating table,” Majala Mlagui, CEO of Thamani Group said.

Mining investors from the region met in Kigali under the auspices of the African Union Commission, to discuss schemes to catapult countries from over reliance on unreliable international prices.They also proposed the fast tracking of the long-term Africa Mining Vision, which was developed by the African Union in 2009 to promote regionalism in empowering the African extractive industry, among other goals.

ZIMBABWE gold and diamond miners risk four months loss of production due to delays in approval lead-time to pay foreign suppliers currently ranging between 10 to 20 days. The retention of 100 percent gold and diamond proceeds set by the Reserve Bank of Zimbabwe implies that the producers have no buffer to fund immediate foreign input payments for production requirements and must apply through the central bank for every cent they need to pay out to foreign suppliers.

Moreover, due to the current cash shortages, the central bank has introduced a priority list for imports. This is done to channel scarce resources first to critical sectors of the economy. It serves also to screen the importation of locally available goods.But Chamber of Mines president Toendepi Muganyi told a parliamentary portfolio committee on Finance and Economic Development Monday that the implementation of the priority list has caused some

challenges to miners.“Suppliers of the mining industry are currently not treated as priority in the allocation of foreign exchange, consequently facing payment delays ranging from 20-30 days and exacerbating the operations of the industry,” said Mr Muganyi. Whilst suppliers are not exporters, they remain critical in the mining value chain and therefore should be included under Priority 1 in the RBZ implementation guidelines,” he said. Mi, who said were overlooked

AFRICA NEEDS A MINERALS BODY OF ITS OWN – EXPERTS (CONT)

ZIMBABWE: GOLD, DIAMOND MINERS RISKS 4 MONTHS OF PRODUCTION LOSS

during consultations ahead of the introduction of the new policies, are engaging the monetary authorities with a view to finding common ground to rectify these issues.The 100 percent retention has also affected small-scale miners who are failing to access funds to finance input requirements such as cyanide and other consumables.

To that extent, miners want Nostro accounts for gold producers to be funded, as is the case with other mineral categories and that Fidelity Printers and Refineries play an agent role just like what happens with the Minerals Marketing Corporation of Zimbabwe.

Mr Muganyi said while the RBZ retention for other minerals is 50 percent, the Chamber is of the view that it is not adequate to cover all foreign payment requirements for the mining industry with a cost/revenue ratio of above 80 percent. Foreign payments consume a huge chunk of the miners’ costs.“In this regard, producers will also face challenges in securing immediate solutions to as much as 20 percent of their input requirements with adverse impact on mineral output,” said Mr Muganyi.For other minerals, the retention of export proceeds for all minerals by RBZ should be scientifically determined based on the understanding of the cost structure of the mining industry wherein up to 80 percent of revenues generated are largely consumed by production costs. In this regard, retention levels not exceeding 20 percent of

proceeds are recommended to avoid delays in procurement of inputs,” he said.

With regards to the measures setting withdrawal limits due to the current cash shortages the miners’ umbrella body said the majority of mining houses are located in remote areas, some as far as 500km from town. Traditionally the affected mining houses used to withdraw cash to pay their workers’ wages.“The current measure will mean workers have to travel long distances to access cash for their daily expenditures and thus there have been reported production disturbances. The Chamber recommends a special dispensation for the mining industry to be allowed to withdraw reasonable amounts of cash in light of the location of mining houses as well as the demand for cash in mining operations,” said Mr

Muganyi.

On the introduction of an export incentive scheme of up to five percent of export proceeds to be effected through bond notes/export vouchers, the Chamber recommended that the facility should be benefited at the point of production or on incremental volume or extended to assist the resuscitation of closed mines.

The Chamber is also of the view that the facility could be used as capitalization of existing entities in light of the capital needs of the industry.“By incentivizing at the point of sale, the facility maybe promoting inefficiencies as it rewards even underperformers,” said Mr Muganyi.

In view of the lead poison that devastated Shakira and Anguwan Kawo village in Rafi local government area of Niger State, the state governor, Alhaji Abubakar Sani Bello has warned against illegal mining in the state. He however revealed that collaborations are on to standardize mining in the state.The governor who spoke at the palace of Emir of Kalgara, Alhaji

Saliu, warned those engaging in illegal mining to desist from further degradation of the environment.He expressed concern over illegal mining in the villages of the emirate where many lives mostly minors were lost recently to lead poison from illegal mining of gold by the locals.“It is high time our people desist from engaging in illegal mining, its devastating effect on their health,

environment and economy is un-quantifiable. The irony of this activity is that our people are being exploited, abused and at the end many lives are put on the line due to health hazards associated with mining and at the long run our human capital is being depleted and our environment exposed to danger”. According to the governor, “Our people must stop this killing. Government will not close its

NIGERIA: LEAD POISONING - NIGER GOES TOUGH ON ILLEGAL MINING


eyes for her citizens to engage in self destructive venture or fold her arms to activities that are inimical to the health and well being of her people”.He said efforts are on to standardize mining activities in the state in collaboration with the federal government so that miners and environment are protected and proceed from exploitation are well

coordinated.“The exploitation of our people is unacceptable. They are not only exposing the whole community to danger, they are being paid pittance. That is why we are appealing to our people to exercise patience for government to fine tune operation in the sector”, he stated.He called on stakeholders within and

outside the state to join hands with the administration towards ending illegal mining in the state. He said, “We want stakeholders to join hands with us in combating this menace. Community leaders must intensify sensitization on the negative impact of illegal mining on the people and environment.”

NIGERIA: LEAD POISONING - NIGER GOES TOUGH ON ILLEGAL MINING (CONT)

CONSTRUCTIONConstruction of Suez: Lessons for Africa By Alex Njovu

Two years ago, I had the privilege of touring part of the construction site of the historical Suez Canal in Ismailia city, courtesy of the Egyptian Government, when Cairo embarked on the expansion of the canal to increase the volume of traffic handled by the facility in a bid to improve revenue collection.Egyptian President Abdel Fattah Saeed Hussein Khalil el-Sisi launched the project in 2015 at a cost of more than US$8 billion and within a year, the facility was successfully completed and turned into a “dual carriage” waterway.

The Suez Canal (Qanāt al- Suways in Arabic) is a huge waterway that separates the African continent from Asia. It provides the shortest voyage between Europe and the lands around the Indian and Western Pacific oceans. It is an artificial sea-level water channel that connects the Mediterranean Sea to the Red Sea through the Isthmus of Suez. It was officially opened to members of the public on November 17, 1869 after a decade of construction.Africa and the world in general have continued to use the canal for trade purposes for several decades. The expansion of the canal will allow more ships to use the canal on a daily basis in the process reducing wait times for one of the world’s busiest important shipping channels.

The government is confident that the project, along with improvement in world trade, will improve the daily number of ships from 50 currently to almost 100 per day by 2023. This will be a huge significance to government and will certainly shame President El Sisi’s critics who ‘cursed’ the project in its infancy.

The government has assured investors and other stakeholders that the canal is safe and secure from any attacks particularly from extremists groups operating in the Sinai Peninsula and the Suez Canal area. In fact the waterway collected its biggest revenues in 2014 despite the security and political situation that Egypt found it-self in at the time.The canal will no doubt inject new lease of life in the economy and has provided thousands of job opportunities to people in the Arab country.The annual revenue generated by the canal previously stood at around US$3 billion but Government expects the figure to improve tremendously, a move that will significantly change the outlook of the country’s economy that has in the past been affected by civil unrest. By reducing the transiting time of vessels, the canal will be the fastest means to transfer trade between various regions of the world.The Suez Canal has been a key source of international trade, earning

Egypt nearly US$5 billion in annual revenues for many years. Around 16,600 ships passed through the canal in 2013. The expansion of the canal also targets construction of an international logistics zone that will increase exports, boosting global world trade and diversifying the existing industrial and servicing activities.

The political strife that swept through North Africa in 2011 left behind the toughest part of the country’s economic woes. President El Sisi and his government deserve a pat on the back for investing heavily in several capital projects such as the Suez Canal to boost the ‘once’ ailing economy due to the civil unrest.More than 50 national companies took part in the construction of the project that has put a smile on the face of every Egyptian. Egyptians demonstrated the will and zeal during the construction of the canal; they supported President El Sisi and his vision to have the canal expanded.Several companies and individuals contributed resources towards the construction of the multimillion projects. The project had about five means of sourcing funds namely members of the public, government, national investors, businessmen and national banks among others.There was overwhelming response from various stakeholders, at one

point in 2014, demand for the investment certificates offered to fund the project, reached around US$2.79 million in less than four days, this was a clear sign of confidence and trust that the people and the stakeholders in general had in both the project and President El Sisi.Some analysts further project that; the new canal is expected to inject approximately US$13.5 billion into the country’s coffers per year. This is a huge amount of money that will certainly put ‘more money’ into the pockets of the local people.What is interesting is that the project was launched when the country was coming from a deadly political strife that divided most communities, despite that, the people still put their

political and religion differences aside and supported a project that has changed the future of the country forever.The new 72-kilometre waterway will help speed up the transiting of vessels and reduce the waiting time for passing from 11 hours to only three hours.Egypt is targeting China which has become one of the biggest global in trade. The canal will be an appropriate channel for Chinese products to Africa and other parts of the world.The construction and the completion of the multimillion canal is a pure demonstration of competence and commitment on the part of the Egyptian government and a clear testimony of what nations

can achieve when its citizens work together for the benefit of both national and state building. The canal is an African property that must be protected at all cost, firstly from any form of attacks and secondly from vandalism looking at the colossal amount of money that was injected into the project. Other African countries must learn from Egyptians who supported the government during the construction of the canal when they had the choice not to contribute resources towards the project.

The author is Daily Mail senior reporter, Zambia Union of journalist vice president and Copperbelt University student, pursuing a master’s degree in peace and conflict studies.

A new report by Timetric reveals that the construction industry in South Africa is projected to expand at a compound annual growth rate (CAGR) 2.62% from 2016 to 2020. The growth is a slight improvement over the CAGR of 2.33% recorded between 2011 and 2015. Titled ‘Construction in South Africa - Key Trends and Opportunities to 2020’, the report details that the government’s investment in infrastructure construction projects, including airports, will propel growth in the country’s construction sector. The government plans to develop the country’s port infrastructure and rail networks by 2050 under the National Transport Master Plan.

South African authorities are modernizing airports and facilities to handle an expected rise in passenger, cargo and air traffic in the near future. The Pietermaritzburg airport in the Msunduzi municipality is currently being expanded to include a terminal building, a new parking area and drop-off zone, roads, a larger taxiway connecting to the aircraft apron, and other related infrastructure.The government has allocated ZAR813.1bn ($67.3bn) from its 2015 budget to renovate and

develop transport, water and energy infrastructure.The Timetric report also mentions that the government’s investment in other sectors, such as housing and energy, and modernization of infrastructure will have a positive impact on the country’s economy and construction industry.Investments in affordable housing and educational infrastructure segment have also been announced, with the authorities investing

ZAR8.3bn ($767.8m) in educational building construction by 2023. Plans have also been initiated to promote renewable energy infrastructure.Although the outlook for the South African construction industry is promising, there are certain factors that may adversely affect the predicted growth, says Timetric. These include labour union strikes, power crisis, high youth unemployment and a weak currency.

REPORT: GROWTH IN SOUTH AFRICA’S CONSTRUCTION INDUSTRY TO BE DRIVEN BY INFRASTRUCTURE DEVELOPMENT


CITY LODGE CONTINUES WITH AFRICA PUSHConstruction has begun on the $20 million (R314m) 147-room City Lodge Hotel in Dar es Salaam, Tanzania, for the JSE-listed hotel group.The development forms part of the City Lodge Hotels Group’s R1 billion expansion into Africa.Clifford Ross, the chief executive of the City Lodge Hotel Group, said yesterday that there had been some regulatory delays in starting construction in Dar es Salaam, which were caused partly by cabinet portfolio changes after Tanzania’s general election.But Ross said the group was now happy to be getting under way with the project, which would add significantly to the group’s east African footprint.Construction was progressing well at the group’s 169-room City Lodge Hotel Two Rivers in Nairobi, while

construction would commence in June on the Town Lodge Windhoek in Namibia.He said the City Lodge Hotel Dar es Salaam was expected to open in the fourth quarter of next year and would be the group’s fourth hotel in East Africa.

Progress

Ross said good progress was being made with the development of City Lodge Hotel Two Rivers in Nairobi with the building about 25 percent complete. “This hotel is on track to open to guests in the second quarter of next year.”City Lodge Hotel Dar es Salaam will be the group’s fifth hotel outside of South Africa.The group’s initial expansion into Africa involved the planned opening

of five new hotels in Kenya, Tanzania, Uganda, Mozambique and Namibia by the end of next year.Ross said construction of the 151-room Town Lodge Windhoek had been slightly delayed as the builders were waiting for the completion of the basement above which the hotel would be constructed.Ross said the group was still waiting for the remaining regulatory approvals for the development of the 148-room City Lodge Hotel Maputo in Mozambique, but still hoped to be able to open this hotel in the third or fourth quarter of next year.

Ross said the group was still examining other expansion opportunities in South Africa, as well as east and southern Africa.

A brand new $560m airport on a remote British island may be forever mothballed over fears dangerous prevailing winds could flip incoming passenger jets.The cliff-top airport on St Helena, which lies 1800km off the African coast and 2900km east of Brazil, was scheduled to open in May.But heat is now coming on the UK

government who went ahead with construction, despite repeated warnings from pilots who were adamant the exposed site was a passenger jet disaster waiting to happen.Larry Erd, who has flown in war zones in Iraq and Afghanistan, aborted a recent flight to the island because of concerns the runway was

too dangerous.Erd was due to fly a British politician to the island, but pre-flight he had harbored grave misgivings over wind shear – one of the biggest causes of deadly aviation accidents.Another test pilot who took on the tricky approach before the airport was set to open described the landing as “hair-raising”

After delaying the opening of the airport for an indefinite time, St Helena’s governor Lisa Phillips acknowledged wind shear was an issue.Ms Phillips denied the winds have spelled the end for the island’s airport.She said authorities were now trying to identify which type of aircraft was most susceptible to wind shear and which could land safely.The airport was planned to boost tourism and secure supply lines to the island, which was once held by

French emperor Napoleon before defeat in 1815.St Helena, home to some 4100 inhabitants, has been connected to the world by a mail ship that makes a four-day trip to the island from South Africa every three weeks.That vessel was scheduled to be retired with the opening of the new airport.

A former British Airways pilot claimed he had warned UK Prime Minister David Cameron about wind shear problems on St Helena.

“If an airport is built on the edge of a near-vertical 1000-foot cliff, the prevailing wind is bound to cause problems,” Brian Heywood wrote in St Helena Independent.“To grumble about wind shear at St Helena airport is a bit like grumbling about the heat in a newly built Sahara airfield in the summer. It is entirely predictable.”percent to $189,65 million during the period under review from $161,67 million in the prior comparable period.

ENGIE TO BUILD 100 MW KATHU SOLAR PARK IN SOUTH AFRICA

MOTHER NATURE THREATENS TO BLOW UP AIRPORT PROJECT ON REMOTE ISLAND


ENGIE TO BUILD 100 MW KATHU SOLAR PARK IN SOUTH AFRICA (CONT)

France-based multinational energy company Engie has secured R 9.2 billion (US$ 588 million) in loans for construction of the Kathu Solar Park in South Africa’s Northern Cape. The project, which is expected to be operational before the end of 2018, will be funded by a combination of debt and equity, the debt being funded by a group of South African banks.Kathur Solar Park is a 100 MW greenfield concentrated solar power project, using parabolic trough technology and a molten salt storage system that allows 4.5 hours of thermal energy storage.During the construction phase of the project, some 1,200 jobs will be created. Over the next 20 years, the plant is forecast to save 6 million tonnes of CO2.Bruno Bensasson, CEO of the Engie Africa business unit, said, “This is an important milestone for our first concentrated solar power project in the Engie Group.

The Kathu Solar Park project supports SA’s strategy of increasing the contribution of renewable power and also underlines our commitment to be a key partner in achieving sustainable energy generation in Africa.”Also in South Africa, Engie owns and operates two thermal power plants – the under-construction 670 MW Avon plant; and the 335 MW Dedisa plant – and is in charge of two solar photovoltaic parks with a total installed capacity of 21 MW located in the Western Cape.The consortium, which is led by ENGIE (48.5%), includes a group of South African investors comprising SIOC Community Development Trust, the Investec bank, Lereko Metier and the Public Investment Corporation.The project is funded by a mix of debt and equity. The debt is funded from a club of South African banks, namely Rand Merchant Bank, Nedbank Capital, ABSA Capital, Investec and the Development Bank of South Africa.

products, so it is used for drainage solutions (including gutters) and gas stations. Concrete roads last longer than asphalt roads with little or no repairs needed.

In a report obtained from the website of India’s Ministry of Rural Development, it shows the different cost estimations of constructing a kilometre of asphalt road and a concrete road. The evaluation also considered the maintenance cost and the Life-Cycle Cost Analysis. The report concluded that although the initial construction cost of a

concrete pavement is higher than that of asphalt, the life-cycle cost of a concrete pavement is about 20-25 percent less than that of asphalt. Besides the life cycle cost consideration, the report also recommended concrete roads for locations in heavy rainfall areas, and this fits in with the weather cycles in Nigeria.

Also, taking a quick look at the implication of constructing either of the two types of road on Nigeria’s local investment, concrete roads are a better option since its raw materials

can easily be acquired locally, unlike asphalt roads where 80 percent of its construction materials need to be imported from elsewhere.With the aforementioned, we can only recommend that the Nigerian government embrace the use of concrete in constructing roads since most Nigerian roads made of asphalt hardly last longer than 2-3 years before they are destroyed. Adopting this will only mean better roads for vehicles in Nigeria and less money spent on maintenance or repairs.

Mega dam on Congo river to produce electricity equal to 20 large nuclear power stations, but critics say it will displace 60,000 people and wreck the ecosystem.The largest dam in the world is set to begin construction within months and could be generating electricity in under five years. But 35,000 people may have to be relocated and it could be built without any environmental or social impact surveys, say critics.The $14bn (£9.5bn) Inga 3 project, the first part of the mega-project, is

being fast-tracked by the Democratic Republic of Congo government will span one channel of the vast river Congo at Inga Falls. It involves a large dam and a 4,800MW hydroelectric plant.But subsequent phases, together costing about $100bn, could eventually span the Congo River, the world’s second largest by volume. It is expected to have an electricity-generating capacity of nearly 40,000MW – nearly twice as much as the Three Gorges dam in China or

20 large nuclear power stations.But the long delayed project, whose backers claim it could provide about 40% of Africa’s electricity, may violate national law and international guidelines for the development of mega-dams, according to the California-based NGO International Rivers.Peter Bosshard, the NGO’s interim director, says those running the project are not concerned that 35,000 people may have to move in phase 1 and 25,000 people later,

DOES THE DANGOTE- FNG CONCRETE AGREEMENT SIGNAL AN END TO ASPHALT ROADS IN NIGERIA?

Early in May, Nigeria’s Minister of Solid Minerals Development, Kayode Fayemi, mentioned that 80 percent of the materials used for road construction in the country are imported. Also, nearly N2 trillion ($1billion) is reportedly lost, annually, due to bad roads in the country. Considering the excessive amount of money spent on the importation of raw materials to construct asphalt roads and the current difficulty in accessing foreign exchange, will it be better for Nigeria to look towards cheaper alternatives for road construction?

Africa’s richest man, Aliko Dangote, recently closed a deal with the Nigerian government to construct concrete roads in Ogun, Lagos, Bauchi, Kogi and Kaduna States, beginning with the 26km Itori-Ibese cement road in Ogun State. The Itori-Ibese concrete road is part of his company’s corporate social responsibility to the people of the area while other cement roads will be built in exchange for income tax concessions.

Dangote’s argument about Nigerian roads has not changed; he has always opined that it is time for the country to replace its conventional asphalt roads with the cheaper and better alternative, concrete.“We are pushing for Nigeria to do concrete roads. It is cheaper to do a concrete road that will last 50 years than to do a bitumen road. It will also help in eliminating corruption because if you go and build a bitumen road, it will have to be adequately maintained, unlike a concrete road that is very durable,” Dangote told the media. “Our decision to introduce cement concrete roads in Nigeria is in line with what [is found] in other parts of the world. For instance, the famous Autobahn in Germany was

constructed with concrete. The equally popular Marine Drive in Mumbai, India, which was built in 1939, is another example of a concrete road,” Dangote once said.The business mogul has been quoted to have made those statements at various events, showing conviction in the durability of concrete roads.

Jennifer Picard, who specializes in asphalt and concrete construction, explained the differences between the two types of road construction in question on Quora. Her explanations align with the information gotten from a Nigerian Engineer who has a wealth of 13 years of experience in construction and pleaded anonymity. From an enlightening conversation, the following relative differences between concrete and asphalt road constructions were deduced:Asphalt is a flexible pavement, which is used mainly for road construction because of its low construction cost and quick construction time. An asphalt pavement can be driven on the same day it is laid. However, asphalt requires regular maintenance to keep it in good working condition, where concrete does not. In fact, it is possible that overlay work or potholes are fixed on asphalt roads every 2 – 3 years whereas concrete roads can last decades without the need for repairs.

Concrete or cement road is a rigid pavement and is more expensive to construct because it is very labor-intensive but cheaper in the long run. This is because the cost of maintenance is nearer to zero than that of asphalt. Concrete is also used on areas that require a strong pavement surface, such as areas that garbage trucks drive over. It is also less susceptible to water and petroleum

CONSTRUCTION OF WORLD’S LARGEST DAM IN DR CONGO COULD BEGIN WITHIN MONTHS


CONSTRUCTION OF WORLD’S LARGEST DAM IN DR CONGO COULD BEGIN WITHIN MONTHS (CONT)

EAST AFRICA: THE CHALLENGE OF COLLAPSING CITY BUILDINGS IS BIGGER THAN APPROVALS

or that fish supplies from the river are likely to be greatly affected. In a filmed interview with International Rivers, the head of the Grand Inga Project Office, Bruno Kapandji, suggests that environmental and social impact surveys will not be completed before work starts, possibly in November.“It is a choice to make, people have no electricity. We set an objective – we have to produce energy,” Kapandji said. “There are a lot of studies to carry out, at least 18, and we favour some over others based on priority, and to allow us to ... develop a tender document that will be technically and financially acceptable.”

Kapandji says that Inga 3 is the “only solution” to Congo DRC’s energy problem and would allow it to export electricity: “As Congolese we have no choice but to build Inga 3. And for the cities in Kinshasa, Bas-Congo and Katanga, Inga 3 is the only solution ... Today the price of commodities is falling and we need revenue. If we have a lot of energy to export, like Canada and Uruguay, we won’t have a problem”.

Bosshard said: “Bruno Kapandji makes it clear that the government has no intention to carry out a social and environmental impact assessment for the huge project before construction starts. Developing Inga 3 without an EIA will violate national law, World Bank safeguard policies, and Chinese guidelines for overseas contractors.”“There has been a complete disregard for affected people and the environment. It is shocking that the world’s biggest hydropower scheme could go forward without an assessment of its social and environmental impacts and a resettlement action plan in place,” said Bosshard.

The Congolese government is fast-tracking the construction to fulfil a legally binding contract signed with the South African government to supply 2,500MW of electricity from the Inga 3 by 2021. It is expected to choose a consortium of two of China’s largest dam builders by August, and hopes to start building by November.

According to Kapandji, the Chinese consortium has said electricity could be generated within four to five years. A Spanish consortium has suggested Inga 3 would take six years to build.Big dams built in developing countries have forced many millions of people to relocate and caused immense environmental damage. But pressure from environment and development groups has forced countries and funders to commission impact surveys to assess and mitigate damage. In 2013 and 2014, the African

Development Bank and the World Bank approved $141m in grants for the preparation of the $14bn project.An absence of environmental and social assessments could affect the financing of the project. The Chinese government has instructed its dam builders not to build any overseas projects without EIAs and both the China Three Gorges Corporation and Sino hydro, the members of the Chinese consortiums, have committed not to build any major dam projects without such assessments.“Building the Inga 3 Dam without thorough environmental due diligence would seriously undermine the efforts of Chinese companies to strengthen their environmental track record,” said Bosshard.At a meeting with civil society groups in April, Kapandji argued that early feasibility studies had found that the project would not have any negative impacts.

The recent collapse of a multi-storey building under construction at Makerere yet again wounded the structural integrity of Kampala’s rising skyline. A fortnight later, the loud bang of a six-storey building’s concrete crumbling amid a torrential

downpour left Nairobi trembling through the night. With East Africa’s cities dotted with a construction boom, the mishaps that have befallen structures in Kampala remain unsettling. Although inept enforcement takes the spotlight for building disasters, relatable influences have a stake in the safety of the built environment.

Unlike Kenya where the National Construction Authority regulates construction, local authorities oversee building works in Uganda, although construction has outpaced their reach.Responding to Kampala Capital City Authority’s failing in relation to the latest calamity, the KCCA chief executive officer is reported to have acknowledged that they are incapacitated to superintend all building works due to inadequate personnel, stressing that “some people carry out construction at night”.

Kenya’s building regulator reached 7,835 sites in 2015 in a nationwide inspection that suspended 2,000 works. The whip, which was blind to the developer and investment, cracked on all errant builders including the KSh 1.7 billion Juja City mall, Central bank’s office block at Ruaraka, and National Social Security Fund’s Mlimani apartments on State House road.The real question that must engage actors in Kampala is: “What level of professional and human capacity is required to decisively regulate building works?”With Kampala’s masons paid an average of Shs 4,000 per day in 2015 compared to Kenyan urban construction workers making up to KShs 500 (about Shs 15,000) two years ago, chances of cheerless labour rates playing into quality are elevated. Remuneration aside, inexpert workers pose a liability to safe dwellings.

When Kenya registered all builders in 2013, out of the estimated 10,000 contractors, only 2,000 were found to be qualified. In March 2013, Tanzania Bureau of Standards took the brunt of the blame when a 16-storey building along Indira

Gandhi Street in Dar es Salaam came tumbling down after substandard steel bars gave way.The incident, happening weeks after a four-storey building in Sinza collapsed, was a rude awakening to deceitful signboards. Whereas sites erected signboards naming professionals involved as required, developers had taken to hiring cheaper masonry, steel workers, electricians who they deployed on site after buying stickers of respective professionals meant to manage the works.

Concerned about malls in Kampala collapsing under the weight of high interest rates in 2014 when dollar loans attracted 11% and local currency developers borrowed at 23%, Ugandan builders engaged the central bank over slashing interest rates for property developers. Pressed against high lending rates in Kenya, the building sector’s bad loans rose highest in the first quarter of 2015 to 28% from KShs 9.9 billion to KShs 12.9 billion.After Kenya introduced a 0.5% levy on construction works in 2014, the regulator took the flak for thwarting property development. However, having raised KShs 1 billion by 2016, plans are underway to institute a revolving fund for small contractors to access loans of up to KShs 5

million at interest rates between 4% and 6%, making it cheaper than banks charging 16% to 17%.The sturdiness of Mombasa’s 400-year-old Fort Jesus mirrors the price of quality unmatched among Kampala’s imposing plazas. When Tororo contractors recently bemoaned the lack of means to ascertain quality of cement they use following arrests of people repackaging adulterated cement in Tororo Cement bags, it is buildings at risk.

Notwithstanding pre-export verification, how robust is our standardization architecture to protect developers from substandard materials? Unlike Uganda Revenue Authority, Uganda’s standards agency deployed at only 17 of the entry points over an eight-hour schedule in 2014 while the tax collector maintained a 24-hour presence at all 54 entry points.To circumvent second-rate supplies, Kenya is mulling over legislation, which seeks to legally impel construction of more than three floors to rely on concrete mix delivered by cement producers that have laboratories to test the required concrete standards. Although concrete quality alone is inadequate when sand, and ballast used in other phases are not sanctioned,


EAST AFRICA: THE CHALLENGE OF COLLAPSING CITY BUILDINGS IS BIGGER THAN APPROVALS

SOUTH AFRICAN SKYSCRAPER MADE OUT OF WOODEN NUMBERS

After gruelling negotiations, a Turkish power station developer has reached a $4.2bn deal with the government of Iran to build seven gas power stations, which will boost the country’s electricity output by 10%.Billed as the largest investment in post-sanctions Iran, the deal sees the stations sited in seven separate regions, with a total installed capacity of 6GW, the company, Unit International, said in a statement.The firm is headquartered in Brussels, but is owned by Unal Aysal, a businessman and former chairman of Istanbul soccer club Galatasaray. Aysal said that when completed the power plants would meet 10% of Iran’s energy needs.Construction is planned to begin in the first quarter of 2017 following the signing of the deal in Tehran on 1 June.

More than a thousand hours went into the year-long negotiations, according to Mohsen Tarztalab,

managing director of Iran’s Thermal Power Plants Holding Company, which is acting for the energy ministry. He added that the combined-cycle plants would be twice as efficient as Iran’s current inventory.Unit will provide the capital to build the stations, and will then run them for 20 years. Aysal commented that this deal would be the largest investment in post-sanctions Iran, and “one of the largest made in a single package in the world”.

Unit built gas power stations in Iran before UN sanctions forced foreign contractors to discontinue their work. These include the 2.2GW Rudeshur scheme in Tehran (pictured), as well as 740MW facilities in Qazuin and Shiraz, a 700MW scheme in Karadh and a 250MW plant in Mashhad.The company has recently agreed to build an 840MW gas plant in northern Iraq, which is expected to break ground by the end of the year.

Aysal said that his company had been working in Iran for the past 34 years. He told Turkish media: “We have completed all the work we’ve done on time. We had no problems in our work. Trust and investment will be based on the friendship between Iran and Turkey.”

As well as power station construction, Unit is involved in generation, property investment, biotechnology and tourism.Over the past 10 years Iran’s power generation capacity has grown by about 7% a year, based on its own immense reserves of natural gas. As well as meeting domestic demand, it exports electricity to Iraq, Armenia, Pakistan, Turkey, Iraq and Afghanistan.

By the end of the sixth five-year development plan in 2021, Iran’s total power generation capacity has the target of increasing by 26GW.

Morocco and Portugal are studying the possibility of an undersea power connection, which would be the second Europe-Africa link. The two countries have signed in this regard a feasibility study, which will cost $455 million.

Submarine power cableAt present, Portugal exports its excess energy to its neighbor Spain, which then feeds into the European system via France. Portugal currently has an excess of production of electricity, especially in terms of renewable energy, while Morocco has a growing rate of demand.Last year, Portuguese power exports to Spain increased by 278 pc compared to the previous 12 months thanks to a large boost in hydro and wind production.

Meanwhile, Morocco’s only link with the European grid is via two

underwater power cables with a maximum capacity of 800 MW connecting it to Spain. This is presently the only direct link between the continents of Europe and Africa.Morocco and Portugal are also looking into cooperation prospects in other power and gas projects.The North African Kingdom has recently unveiled a €40 billion investment plan for its energy sector through to 2030, with around €30 billion set aside for renewable projects.

Morocco hosts COP22 in Marrakech from 7 to 18 next November. The country has pledged to reduce greenhouse gas (GHG) emissions by 32 pc by 2030.In its “Intended Nationally Determined Contribution” (INDC) to address climate change to UN Framework Convention on Climate Change (UNFCCC,) the country

has unveiled an ambitious plan to increase the share of renewable electricity capacity to 42 pc in 2020

TURKISH FIRM AGREES $4.2BN DEAL TO BUILD SEVEN IRANIAN POWER STATIONS

the measure is a smart pointer to reinforcing quality of building materials.Issuance of a construction permit in Tanzania is pegged to a mandatory pre-construction inspection before excavation to ascertain firmness of soil depending on the proposed structure.To commence construction, city council’s inspection has to approve the foundation, concrete, and slab for the superstructure. Tanzania’s procedure is a stark reminder

that each phase’s faithfulness to safety, including the often-ignored siting, counts for the ultimate safety of buildings.Stemming the tide of building construction failures in Uganda rests not only on approving structural designs but, rather, compels multifaceted action on all fronts that bear on construction.

Swedish architectural company Anders Berensson Architects was recently contracted by the Stockholm Centre Party to come up with a design for a skyscraper that will replace the old car park in the city’s centre. In its response, the architecture firm came developed the Trätoppen (Tree Top in English) – a slender and wooden skyscraper stationed at the centre of the lot so as to leave the current car park facade intact. The reason behind the re-purposing of the old car lot is to reduce on the number of cars that entre the city centre while at the same time preserving the urban space for more housing, which would otherwise encroach on green areas. The skyscraper height addresses the problem of urban density by creating more space vertically so as to give room for housing, shops and restaurants. Trätoppen will be 40 storeys in height and will be built out of cross-laminated timber (CBT). To maintain its original facade, the new skyscraper is designed so as to only occupy a portion of the interior, six metres off the car park walls. Out of the 33 floors that stand above the existing car park, 31 floors will be used for residential purposes and the remaining two floors will be public terraces. The seven floors in the existing car park will be mostly used for retail and restaurants.

The old car park known as Parkaden is a blue print of architect Hans Asplund and is a big characteristic landmark in the city centre. The most

noticeable feature of the building is the facade with a number pattern indicating floor levels. The CLT facade of the new skyscraper will be an addition of the numerical pattern that was designed by Asplund. From an outside view, people will be able

to identify the floors numbers by reading from the exterior that is made of wooden numbers. Anders Berenson finds this a crucial feature because the skyscraper will be the highest in the city centre of Stockholm.

ENERGYMorocco, Portugal Mulling Undersea Electricity Link


MOROCCO, PORTUGAL MULLING UNDERSEA ELECTRICITY LINK (CONT)

and to 52 pc by 2030.This plan is expected to enable the country to reduce fossil fuel subsidies and increase the use of natural gas, through infrastructure projects allowing liquefied natural gas imports.According to experts, the projects that are currently under construction in wind, solar and hydropower will enable the North African country to achieve its goal of 43 pc renewable shares by 2020.

SOLAR INSTALLATION AT 382 JAN SMUTS AVENUE IN SOUTH AFRICA

GENERAL ELECTRIC DEVELOPS NEW INVESTMENT PLANS IN AFRICA

382 Jan Smuts avenue in South that belongs to Tower Property Fund in Johannesburg recently received a solar PV installation, which comes with a bank of 300 highly efficient solar panels on its roof. These panels will supply close to 26% of the building’s power requirements.The project is managed by Spire Sustainable Solutions, a subsidiary of Spire Property Management, on behalf of the Tower Property Fund.Spire Sustainable Solutions’ managing director Simon Pension, says that initial results are very impressing after the system started operating at the end of February 2016.

The 382 Jan Smuts solar PV installation is closely monitored through a weather station installed at the top of the roof and feeds results directly through to an online portal that enables Spire Property Management to check the performance of the system at any time.Beside the solar installation, 382 Jan Smuts has also received a lighting retrofit and undertook a functional renovation and maintenance that involved among other things facelift of the façade, new bathrooms in the three storey office block in addition to a complete repaint for the entire building.

Apart from the installation at 382 Jan Smuts, other building structures

that follow in Spire’s portfolio have also gotten solar installations. These include the Cape Quarter and the DeVille Shopping Centre in the Western Cape, together with at 6-8 Sturdee Avenue in Johannesburg. The installations will supply approximately

US$84000 worth of electricity during the first year of operation.“The value of this power will increase in direct proportion to electricity

price increases,” says Simon Stubbings, property manager for 382 Jan Smuts. “This power is resold to the tenants and so will no longer need to be purchased from Eskom.”Spire Sustainable Solutions used the services of renowned installation company, Weave Energy, to partake the installation at 382 Jan Smuts and the DeVille Centre and 6-8 Sturdee Avenue.”

The American power and energy giant, General Electric, has decided to club together with Pan-African multi-sector business services company Mara Group to make more inroads in Africa through investment in infrastructure, a domain

still infant on the black continent. General Electric plans to invest billions of dollars in Africa’s infrastructure business industry, which according to pundits holds great future with needed investments estimated at $90 billion every year.

To attain that goal the American giant announced on May 26 at Lusaka during the African Development Bank annual meetings the creation of the joint company with Mara Group, founded by British-Ugandan business tycoon Ashish J. Thakkar.

Thakkar co-founded Atlas Mara with British finance savvy, Bob Diamond.The joint venture will seek to sponsor infrastructure projects in a number of selected countries on the black continent. Most investment projects will target various areas namely power production, transports, gas, oil and mineral raw materials.

General Electric has established good footprints on the African continent after it impressively supported significant projects in several domains. The American giant has invested $250 million for the construction of plant at Calabar (Nigeria) specialized in the production of turbines and oil producing equipment. It also pumped $1.5 billion into the construction of a power plant (1,100 megawatt) in Ghana.

US technology behemoth Apple Inc. (NASDAQ:AAPL) has recently set up an energy subsidiary and asked regulators for permission to sell excess power on wholesale markets across the country.

The newly-created unit, Apple Energy LLC, wants to sell energy, capacity, and certain ancillary services to any purchaser that is not a franchised public utility affiliate, according to documents filed with the Federal Energy Regulatory Commission (FERC) on June 6. It seeks to start power sales on August 5, 2016 in the Southeast, Southwest, Northwest, Northeast, Central, and Southwest Power Pool Regions.

Presently, Apple owns or controls renewable energy generation facilities that power its data centres. Its portfolio includes solar photovoltaic (PV) and biogas plants totaling 67.5 MW in Catawba, North Carolina, some small hydropower

facilities in Oregon, a 19.9-MW

solar park in Lyon County, Nevada, and a 50-MW PV project under

construction in Pinal County, Arizona.In addition, the company has a 25-year power purchase agreement (PPA) for 130 MW from a solar PV plant being built by California

Flats Solar LLC. It also owns two behind-the-meter generating

facilities totaling 18 MW of capacity, according to the filing.In February, Apple issued the largest ever US corporate green bond -- of USD 1.5 billion (EUR 1.33bn) -- with

APPLE FORMS ENERGY UNIT WITH PLANS TO SELL EXCESS RENEWABLE POWER


plans to spend the proceeds on projects that reduce impact on climate change by using renewable energy sources and driving energy efficiency in Apple’s facilities, products and supply chain.

US biotechnology start-up White Dog Labs has received a grant from the US Department of Energy (DoE) for its MixoFerm fermentation technology that it will unveil next week.The company will use the funds, whose amount was not specified, to extend the technology from first to second-generation biofuels and chemicals via microorganisms that can concurrently consume a cellulosic sugar feedstock and carbon dioxide

(CO2), reducing in this way the CO2 emissions from the process.“Our approach increases ethanol plant output by 50 percent for a given carbohydrate feedstock (corn or cellulosic) -- a potential game-changer for the global bioenergy industry,” chief executive Bryan Tracy said in a statement.

White Dog Labs will unveil the technology at the Fuel Ethanol Workshop in Milwaukee on June 21

and June 22.Tracy said the start-up was seeking a partner to apply the technology to ethanol production. However, it will first be used for the production of bio acetone and isopropyl alcohol and the company has applied for a DoE loan to help fund a USD-150-million (EUR 133m) plant.White Dog Labs is one of six bioenergy projects that were awarded up to USD 10 million of DoE funding in May.

Financial advisor Fieldstone Africa last week launched an investment index for renewable energy in Africa.The ‘Fieldstone Africa Renewables Index (or FARI) is designed to assist investors, developers and financial institutions in comparing the relative merit of renewable efforts in different countries.

The index “takes into account real world experience as well as the legal, regulatory and technical basis to get things done,” the independent financial advisor said in a statement.FARI groups countries into three specific distinctions.

“The Big Five” will group states where an investment of time and capital in a renewable energy project might most readily be made today.“Honourable Mentions” will bring together those that merit watching in the near-term for project opportunities and “Little Gems” groups smaller economies limited in the scale of potential projects that are nonetheless conducive to successful project development.The inaugural FARI index ranks South Africa at the top of the Big Five category thanks to its sophisticated auction system but notes of possible ratings downgrade for the country

as incumbent utility resistance and complications in closing already awarded projects are problems that might emerge.

Morocco, Uganda and Egypt round out the Big Five. The fifth spot has been left open in this edition of the index.The “Honourable Mentions” brings together Algeria, Ethiopia, Ghana, Ivory Coast, Kenya, Mali, Nigeria and Zambia. “Little Gems” are Djibouti, Guinea, and RwandaThe investment firm said that it will update the ranking every four months.

Energy is at the very core of how economies and societies develop, and yet the sources of energy have become huge issues in recent years. Every developed nation in the world fueled its economic growth off the back of fossil fuels, but as

finite resources dwindle, nations are looking for more sustainable means of energy.In developing regions of the world this is an issue that relates to more than just growth, but also to the well being of its citizens. The pollution

caused by traditional fuels often affects the poorest people the most, and as urban centers become the financial heart of emerging markets, the need for greener energy has become increasingly stark.The African group SABER is a

APPLE FORMS ENERGY UNIT WITH PLANS TO SELL EXCESS RENEWABLE POWER (CONT)

US START-UP WHITE DOG LABS GETS DOE GRANT FOR FERMENTATION TECHNOLOGY

FIELDSTONE AFRICA LAUNCHES INVESTMENT INDEX FOR RENEWABLE ENERGY IN AFRICA

THE AFRICAN BODY SABER LOOKS TO REVOLUTIONIZE ENERGY IN AFRICA

prime example of people taking the initiative to change the face of energy within their markets.

What is SABER?

The African Society of Biofuels and Renewable Energies (ABREC/SABER) was established in 2009, to work towards creating cleaner and more sustainable sources of energy in Africa. The body is a public-private partnership (PPP), which is funded by 15 African nations in conjunction with various private enterprises.SABER CEO Thierno Bocar oversees the organization’s work from its central office in the Togolese capital, Lomé.SABER’s mission statement outlines how significant sustainable forms of energy will be for the emerging markets of Africa, saying, “Transitioning to clean energy is all the more demanding because energy needs are foreseen to expand considerably in Africa over the coming decades with new investment of about two thirds of existing capacity needed to keep pace with Africa’s growth.”Although the organization is only 7 years old, it has already established a number of strong collaborative partnerships, and has turned ideas into realities. SABER was self-funded by 2012, which meant it had met its goal of being an independent advisory body to the public. In 2013, the group signed an agreement with the Committee on Economic and Monetary Union of West Africa (UEMOA), in which additional funding was allocated to move forward with several SABER projects.

Ideas turned into actions

The most notable of these projects has been the construction of solar powered street lighting across 3 African nations. Togo and Sierra

Leone have both had 13,000 solar powered street lamps built, while a further 15,000 have been constructed in Benin. These developments alone are worth

around $175 million of investment.Solar energy features prominently in SABER proposals, alongside hydro-electricity and geothermal energy. These forms of energy are not only clean, but access the continent’s own resources intelligently.

CEO Thierno Bocar stated that within West Africa there were currently three areas that “have been selected: solar street lighting, rural electrification using solar kits or small-scale plants and the installation.”However, SABER’s work is already expanding as it aims to address renewable energy needs across the continent.Courtesy of SABER projects, there are currently solar power plants in 8 African nations, geothermal power stations in Kenya and Ethiopia, and a hydroelectric power plant in Uganda.

Continued growth

SABER has established relationships with The African Development Bank and USAID, but 2016 has seen further developments in their cooperative efforts. SABER recently announced a partnership with Oragroup that will provide further revenue for the growing number

of energy projects across Africa. Oragroup wants to be known as the leading bank in Africa for fighting climate change, and Mr. Bocar described the $233 million platform as enabling “project arrangement with high added value.”

SABER’s continued growth constitutes more than its own ventures, as Bocar wants to foster environments in which local people drive change and grassroots initiatives can flourish. The plans to help build such a foundation are already in place, as SABER offers expert advice to governments, and is also striving to fund the Seeded Green African Development Fund. This structure will enable private equity to fund small-scale projects across the continent, with an initial goal of a $150 million fund over the next 10 years.

Of course, if SABER’s successes catch the imagination of others, and governments make the most of the support the organization offers, then organic growth within sustainable energy projects could well eclipse such targets. If it does then it will benefit not only Africa, but also the world.

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Africa doesn’t need Europe’s help, it needs partnership,” says David Otieno, head of the Africa-EU Energy Partnership (AEEP) Secretariat.His statement best summarizes the spirit of the Second Stakeholder Forum which brought together more than 400 participants from Europe and Africa last month – ranging from ministers and commissioners to international organizations, the private sector, academia and civil society – to discuss renewable energy investments and innovations between the two trading blocs.Leaders from both continents applauded the progress made towards the 2020 AEEP targets. Although they agreed more time is needed, plans to extend access to modern and sustainable energy supplies to at least half of the continent’s 1.1 billion people, to increase the use of renewable energy on the continent, and to improve energy security, are still afoot.Africa’s economy is growing currently at an average rate of 3 per cent per year and in the last decade; six of the world’s ten fastest-growing economies were in sub-Saharan Africa. Yet, the continent’s power supply is not keeping pace.As Jacques Moulot, chief energy specialist at the African Development Bank, points out, without a steady energy supply, real economic grow on the continent is impossible. “Energy is to economy what blood is to people,” he highlighted in his speech.So what part can European Union policies play in plugging the energy deficit?“We have to be realistic. There is an investment gap in the energy sector of approximately USD 23 billion dollar a year, and we don’t expect the whole amount to come from our European partners exclusively,” Moulot tells Equal Times. “It is important to improve the environment and the regulation framework to involve different stakeholders in the process.”

Renewables – the solution to energy poverty?

At present, over 600 million people lack access to electricity on the continent. The situation is particularly critical in the central region where less than 10 per cent of the population in countries like South Sudan, Chad and Central African Republic has access to electricity.North African countries along with South Africa and Ghana are major exceptions, but they are facing a tremendous increase in energy demands in the coming years – according to the United Nations, Africa’s urban population will from surge from today’s 414 million to 1.2 billion over the next 30 years.As a starting point, both African and European ministers agree that renewable energy systems – such as solar, wind, biomass and geothermal power – must play a crucial role in contributing towards universal and affordable energy access. This is already happening – the Forum detailed 58 joint initiatives, which support renewable energy developments on the continent with EU funding and technical assistance.“Renewable energy resources in Africa offers opportunities to not only fulfil the region’s energy needs, but also tap into the European market, with its energy bill of 1 billion euros a day,” Dr. Elham Ibrahim, the African Union Commissioner for Infrastructure and Energy, told Equal Times.Dr. Michael J. Saulo, of the Technical University of Mombasa, Kenya agrees: “Africa needs Europe and Europe needs Africa. Europe has the know-how and the private investment, Africa has a vast potential for renewables. All factors converge together.”Analysts are calling on both partners to do more to attract the private sector, but a lack of policy and regulatory coherence as well as regional integration is a major obstacle to investment.Yofi Grant, head of Databank, a Ghanaian private investment fund, agrees that “the private sector in sub-Saharan Africa is growing faster than in any other region of the world,” and yet investors are still failing to get on-board with big development projects.“The African private sector and foreign investors must be more proactive and get involved with the development of the continent. This way, joint policies can be launched without fear of duplication,” he told Equal Times.

Top of the agenda

Between 2014 and 2020, the European Commission’s Directorate-General for International Cooperation and Development (DG DEVCO) intends to invest between 2.5 and 2.7 billion euros on energy projects in sub-Saharan Africa. “Energy access is at the top of our agenda and Africa is in the driving seat of this transition,” said DG-DEVCO’s deputy head of unit, Felice Zaccheo.He emphasized that this bilateral cooperation is not “imposed” and the money is invested in projects that “are determined by the countries themselves”.Several financial mechanisms have been designed to combine public funding with private, commercial and bank funds, managed by the African Investment Facility – a financial mechanism that combines EU grants with other resources such as development loans to foster investments which will have a positive socio-economic impact. The Electrification Financing Initative, a project that supports electrification investments in rural areas, is just one example.

AFRICA AND THE EU COMMIT TO RENEWABLE ENERGY ROLLOUT SOUTH AFRICA IS LEADING AFRICA’S CLEAN ENERGY

REVOLUTION

AFRICA IN U.S.$12 BILLION ENERGY DEAL AS CONSERVATIONISTS RAISE RED FLAG OVER DAMS

South Africa is Africa’s clean energy frontrunner. Since 2011, it has invested 249 billion rand ($16.348 billion US) in wind and solar technology.

SA is followed by Morocco, which has spent $4.2 billion, and Kenya, which has spent $2.4 billion.Around the world, $335 billion US has been invested in renewable energy – including wind and solar technology – following the crash of oil and gas prices, according to Michael Liebreich, who spoke during African Utility Week at the Cape Town International Convention Centre. Liebreich is chairman of the advisory board at Bloomberg New Energy Finance, which provides information on clean energy to investors, energy companies and governments.Business mogul Bill Gates in November committed $2 billion of his own fortune to research and development into clean energy, Liebreich said.

Clean energy investment is on the rise, and wind and solar energy will continue to become cheaper, he added.

Changing to clean energy is like rebuilding an airplane engine in mid-flight, Liebreich said. “In Africa, it’s even more difficult. Here, you’re attempting to rebuild the engine when you’re taking off. That’s a great challenge.”African countries have clean energy investment potential, but creditworthiness remains a challenge, he said.Liebreich described South Africa-born entrepreneur Elon Musk’s latest electric car, the Tesla Model 3, as a clean energy “miracle,” a “game-changer and the most successful technology launch of all time.”The car had attracted about 276,000 orders, worth almost $12 billion, he said.

Renewable energy could not be ignored, said University of Cape Town professor and energy expert Anton Eberhard.“Renewable energy is breaking through in a way traditional power utilities cannot ignore any longer. Due to their variability, renewables are not suitable for base load generation, but they are becoming cheaper and we will have to maximize their contribution to the grid.”

Africa was presented with its largest energy deal ever - a $12 billion package from the Africa Development Bank - as some leaders fought off pressure from environmentalists concerned about the threat of an impending construction boom of power dams, reiterating their position that the continent was simply tired of being in the dark. Under the new deal, which was announced during the ADB’s annual meeting in Lusaka, which ran under the theme Energy and Climate Change, the bank will spend $12 billion over five years. In addition, the bank will leverage at least $40 billion from other private sector

players, such as sovereign wealth funds, private equity funds and pension funds, to invest in the energy sector as it tries to meet one of the key components in its High Five development agenda.The High Five agenda includes: Light up Africa, Feed Africa, Industrialize Africa, Integrate Africa, and Improve the quality of life. But with the threat of drastic weather changes such as droughts and floods, some conservationists say the construction of power dams will add to a problem that is already getting out of hand, inflicting devastating impact on Africa’s poor.


AFRICA IN U.S.$12 BILLION ENERGY DEAL AS CONSERVATIONISTS RAISE RED FLAG OVER DAMS (CONT)

Mary Robinson, the former president of Ireland, and an ardent environmentalist, cautioned African governments to think of the poor and how they bare the deepest impact of climate change. She said the development of sources of energy in Africa that are not clean, such as coal, will go further to increase the problem of climate change.Some African leaders did not fall for this vibe.“I am an environmentalist,” Olusegun Obasanjo, the former president of Nigeria, said at a panel of discussion over the new energy deal, before adding: “But I will not keep the environment clean at the expense of keeping poverty in Africa.”Idris Debby, the president of Chad and the current chairperson of the African Union, said it was unfair for Africa, which accounts for roughly two per cent of global trade, to pay a price for the impact of carbon emissions on the environment, where rampant droughts and famine have hurt lives and businesses.

Balancing Act

“You cannot get us to bear a responsibility that is not ours. We need to develop ourselves without making [such environmental] calculations” he said, urging the Western world “to assist us [in dealing with our environmental issues] without making any conditions.”

The war of words between the conservationists and African leaders perhaps offered the strongest indication of the balancing act that the continent will have to deal with when it hosts the world’s top climate change conference later this year in the Moroccan town of Marrakesh. The conference in Morocco will discuss ways to implement the agreements signed during the previous conference in Paris in December, where countries agreed to cut carbon emissions by a half by 2050.In November last year, the Africa Development Bank approved

Uganda’s investment plan to boost the country’s renewable energy. Through the ADB’s Climate Investment Funds, Uganda received $50 million to promote different forms of clean power generation.The CIF announced recently that through its Scaling Up Renewable Energy in Low-Income Countries Program (SREP), it would support the growth of geothermal exploration, solar PV off-grid rural electrification and grid net metering, and wind measurement for development of pilot wind power in Uganda.Some of the expected results from the projects under Uganda’s investment plan include: a minimum direct contribution of 151MW of installed capacity of renewable technologies (non-hydro) in the country’s energy mix; an increase in the annual energy output of 125.4 GWh per year; a total investment of at least $455 million in the power sector associated with SREP; development of two nascent generation technologies in the country, geothermal and wind, with high transformational impact.

However, some African leaders said while some of the renewable energies such as wind and solar power cannot industrialize Africa. Nigeria’s Vice President Yemi Osinbajo said Africa needed to go for the large power plants if the continent is to develop faster.“I don’t think we have the options

that the developed countries have. We simply don’t have power.“Our immediate need is for base load. We need to develop our hydro, coal to power, fossil fuels as we deal with climate change,” he pointed out.

The issue of coal, which is dirty, has environmentalists worried. But Akinwumi Adesina, the president of the African Development Bank, said: “there is an elephant in the room, and that is coal. We have to discuss that. Today, there is clean coal technology. Africa does not need pity; it needs technology and innovation deal, which was announced during the ADB’s annual meeting in Lusaka last week, which ran under the theme Energy and Climate Change, the bank will spend $12 billion over five years. In addition, the bank will leverage at least $40 billion from other private sector players, such as sovereign wealth funds, private equity funds and pension funds, to invest in the energy sector as it tries to meet one of the key components in its High Five development agenda.

Catch-22

The catch-22 situation between a country’s desires to produce more energy while protecting the environment is something that Uganda knows all too well. In March, the World Bank raised questions over the impact of the 183MW Isimba hydropower project on the Kalagala

offset, a programme that remains crucial towards the protection of the Mabira ecosystem, which holds Uganda’s largest forest.A team of World Bank officials toured the Isimba hydropower project sometime between March 7 and 11 to “gain a better understanding of how the project is progressing relative to the impact on the Kalagala Offset Area,” according to a statement from the bank.The bank, however, added that it “remains deeply concerned about the potential impact of the Isimba Hydropower Project on the Kalagala Falls Site, and we have shared our concern with the Government of Uganda on a number of occasions.”China Water and Electric Corporation are the contractors for the Isimba project. The Isimba project is just 40 kilometres downstream from the 250MW Bujagali hydropower project.One of the issues within the indemnity agreement was that

government would commit not to develop power generation that could adversely affect the ability to maintain the Kalagala falls.

The indemnity agreement already recognized that the Bujagali project, in which the World Bank has made investments, would lead to negative environment effects on the Kalagala area. The 2010 sustainable plan was designed to stop any further hydropower generation from impacting the area.The World Bank statement noted that the full impacts of the Isimba Dam on the Kalagala Offset Area would be determined after the completion of the Environmental and Social Impact Assessment Addendum expected before the end of 2016. However, Adesina said the West needed to concentrate more on saving the environment from their side.“Imagine there are two people; one is

fat and the other one is thin. The fat person needs to lose weight, while the thin person needs to gain some weight,” he said, using the analogy of the differences between Africa and the developed world.Adesina said they are set to hire a vice president for Power and Green Growth, who will drive the bank’s plan on power generation and the environment. The numbers tell a bleak outlook for Africa. Kofi Annan, the former secretary general to the United Nations, said two to four per cent of Africa’s Gross Domestic Product is lost as a result of poor energy shortage.“This situation should not be tolerated,” he said.

Africa accounts for just 16 per cent of the world’s population. However, 53 per cent of the world’s population without power is also in Africa.

Stakeholders at the World Economy Forum on Africa, recently held in Kigali, Rwanda, have identified inadequate financing, policy inconsistency and bureaucratic bottlenecks as some of the major problems confronting power supply in Africa.Speaking on the sidelines of Africa’s power sector, which was a major discuss, Vice Chairman, General Electric, GE, John Rice, said that there were some well-intentioned initiatives geared towards meeting the energy gaps, but challenges related to financing, bureaucracy, traditional risk analysis, and decision-making based on election cycles have led to delays.

Citing the case of United States-backed Power Africa initiative, which was launched in 2013 by President Barack Obama with a view to “double access to power in sub-Saharan Africa”, he said, “Power Africa, supported by a host of governments and private sector players, has an ambitious goal of adding 30,000MW of electricity. “But, so far the number of megawatts added onto the grid

directly related to the initiative is very little”.Identifying poor electricity access as constraint to businesses and the country’s economy growth, President of the African Development Bank, AfDB, Akinwumi Adesina, noted that Africa “cannot industrialize” without improving power generation capacity. Adesina also said that over the next decade Africa must strive to attain ‘universal access to electricity’.He explained, “We have got to be so impatient with moving Africa forward relentlessly. We have no choice. In 2025, there is absolutely no reason why Africa should not be totally lit up with the power it needs to industrialize, because we must not forget, no economy ever develops unless you have the base load power to drive industries and be competitive.”

On his part, Group Chief Executive Officer, Oando Adewale Tinubu, reckons Africa is “potentially the largest power market in the world”, based on available resources and demand for electricity.“We are losing a wonderful

opportunity to leapfrog out of poverty by not having a more sustainable or robust energy policy, and I think, without a doubt, the biggest challenge we have to economic growth is really our poor consumption of energy, and invariably our very expensive consumption of energy. “We are never going to become an exporting continent until we lower our cost of energy and we take advantage of these different [energy] sources, as the development of more regional mega-projects in the continent is necessary for growth in the sector.”

“Although there has been some momentum in developing power projects in recent years, sub-Saharan Africa still has a long way to go with hundreds of millions of people not having access to grid-connected electricity.”

Private sector’s involvement

He further noted that the private sector can play a significant role in power generation, but with a friendly business environment, citing example

BUREAUCRATIC BOTTLENECKS AND POLICY INCONSISTENCY CONTRIBUTING TO POWER PROBLEMS IN AFRICA


BUREAUCRATIC BOTTLENECKS AND POLICY INCONSISTENCY CONTRIBUTING TO POWER PROBLEMS IN AFRICA (CONT)

ICTSpotlight: AU commends China for its support to Africa’s ICT capacity building

pursue certain programs; one of them has got to do with infrastructure which we are talking about today, on industrialization, but also fighting poverty,” he noted.

Cheng Ning, Counselor of Cooperation and Exchange at the Chinese Mission to AU, said China would continue its cooperation with the AU Commission and its member states towards realizing common dreams of development and prosperity.“You have this dream of Africa; you also have this bright future; and in China, we have also Chinese dream. Hand in hand between Chinese dream and African dream, we will make our bright futures,” he said.He stated that China would further strengthen its cooperation with Africa in capacity building by providing more and more training opportunities to experts on the continent.

Elham Ibrahim, AU Commissioner for Infrastructure and Energy, has commended China in her part and said, “I want to thank the government of China and Huawei for implementing our MoU. It is one of the most important elements of our MoU to build the capacity; and the ICT area is very important area.”Huawei, a leading global ICT solutions provider, has been implementing its “Seeds for the Future” program in different parts of the world, in which Huawei leverages its world-leading ICT technologies to cultivate ICT professionals and thus drive knowledge transformation for the development of local ICT industry.Speaking during the African Union, Stone Shi, CEO Huawei Technology Ethiopia, stated that people are now living in a super connected world and human lives are getting smarter and smarter due to advancements in the ICT industry.

The CEO expressed Huawei’s readiness and willingness to partner with Africans to share experiences and best practices in the industry.With years of experience with Africa ICT industry coupled with the Company’s extensive industrial global network, “Huawei is well positioned to share the best practice, and the latest ICT solutions; we are ready and willing to share our experience.”

According to the CEO, participants of the training will stay in Shenzhen and work with the Huawei team in the Chinese Headquarters, learning about Huawei’s international culture, strategy and values, and receive technical training from some of the finest professionals in the industry.They will be Huawei’s guests in Beijing for an immersive introduction to Chinese language and culture.

of Nigeria that has become reliant on private diesel generators, which are pricier to operate, compared to industrial power. “What was missing was having an enabling environment, which the government has finally realized and has privatized the power system, liberalized tariffs and in the process we are now seeing the private sector getting involved in building new power plants, and we are now attracting global capital.

“The difference is, power is now seen as a business opportunity for investors to make a return. People now have access to cheaper power

than when the government was subsidizing and [was] unable to meet that demand,” said Tinubu. Developing projectsHowever, Jasandra Nyker, Chief Executive Officer of BioTherm Energy, a Southern Africa-focused investor in energy projects, called for a greater sense of urgency in developing projects.

He said, “When I talk sense of urgency, I see projects needing to happen in the next two to three years. In my company, we moved from site identification, to providing power to the grid, it took us 36

months and we did that twice. So if a small company like mine can do that, I think more and more players out there can actually do it.”

On local content, he added that her company was able to complete projects swiftly by working with surrounding communities to avoid conflicts over land. “The community understood what was being done, how it would be done, and when benefits would accrue to them. BioTherm also managed expectations, and ensured the project was bankable from day one,” she added.

The African Union (AU) has commended China for the overall development support China provides to Africa in general, and to capacity building of the continent in information and communication technology (ICT) sector in particular.Erastus Mwencha, Deputy Chairperson of the AU Commission, has called for more cooperation with China on ICT development in Africa.

Mwencha made the remarks on Monday during an event organized in connection with the Huawei “Seeds for the Future” program at the headquarters of the pan-African bloc in Ethiopia’s capital Addis Ababa.Huawei and AU signed a Memorandum of Understanding (MoU) in January 2015 for cooperation between the two sides in the area of ICT and capacity building for the African continent.In the implementation of the MoU, under its initiative dubbed “Seeds for the Future” Huawei has been organizing training and experience sharing visits for African experts in China.

In line with the Huawei “Seeds for the Future” program, the first batch of 20 African experts attended the training in December 2015 in China, which was accompanied by a site visit aimed to familiarize the African experts with the

latest information and communications technologies at Huawei China.In the latest move, the 2nd Batch “Seeds for the Future”, which includes 10 ICT experts from AU, is going to China in July for two-week training and visit sessions in Shenzhen and Beijing.Hailing the ongoing collaboration between China and Africa in different areas including the ICT infrastructure, Mwencha has called for more cooperation towards capacity development of Africa in the ICT sector.He stated that the two sides have been cooperating in development programs under the Forum for China-Africa Cooperation (FOCAC).“We do have very strong cooperation between Africa and China under FOCAC. We have signed agreement to

Africa needs mechanisms to solve its information and communications technology (ICT) training and education problems, which comes within the vision of the African Union, Africa 2063 for a prosperous continent, Minister of Communications and Information Technology Yasser Al-Qadi said.

Al-Qadi added, during the opening ceremony of the eLearning Africa 2016 conference entitled “Making vision reality”, that Africa is facing several challenges in that field, including means of sharing infrastructure and experts to push the growth of vital sectors, such as education.Human resources are Africa’s most important resources, and should be developed and improved, especially youth, Al-Qadi said.

Africa has more than 200 million people between the ages of 15 and 24 on its continent, said Al-Qadi, calling upon the continent’s leaders and officials to create programmes and policies to utilize this huge resource.Al-Qadi toured the exhibition, held

on the sidelines of the conference, which showcased products, services, and projects offered by 40 companies participating in the exhibition from more than 19 countries, in addition to six Egyptian companies specializing in ICT education and training solutions.Asmara Hosny, CEO of Information Technology Industry Development

Agency (ITIDA), reviewed the efforts of the agency in investing in technological innovation and entrepreneurship, as well as the steps Egypt took to create clusters of innovation in the various provinces based on cooperation between international companies, technological incubators, training centres, and civil organizations

ELEARNING AFRICA 2016: RESETTLEMENT OF ICT EDUCATION AND TRAINING IN CAIRO


ELEARNING AFRICA 2016: RESETTLEMENT OF ICT EDUCATION AND TRAINING IN CAIRO (CONT)

BEFORE YOU IMPLEMENT ADVANCED CYBER SECURITY TECHNOLOGY, CONSIDER THIS By Simeon Tassev

example, a vulnerability program will check the systems to ensure that there are no weaknesses as research shows that most breaches occur through known vulnerabilities. While there is still the risk of exploiting new vulnerabilities (undocumented, zero knowledge attacks) there might be legacy vulnerabilities that could be exploited further down the line if unchecked. Having first line systems that generate intrusion or exception alerts is pointless without having the systems that act on those alerts to actively analyze the various stats and possible risks. This technology is known as security information and event management systems, but such technology requires a security system that is mature, in order to effectively analyze and deal with alerts and events, before its too late.

Get the basics right The biggest prerequisite that companies need to address before implementing advanced cyber security solutions, is to have a clear definition of what they are protecting. Therefore, companies should take a full inventory of all systems, and preferably implement a level of security categorization. By classifying these systems, you can identify which systems are business-critical and which are back office and

non-critical. Once there’s a clear picture of what you’re protecting, it’s time to put the relevant policies and procedures into place that tell you how protection must be done. For example, it’s not enough to say that data must be encrypted to protect it. A policy is required that stipulates how to encrypt data and how to deal with it.Build the right protection As soon as the inventory has been done and the policies are in place, only then is it possible to start building the security-technology stack by going through all of your systems and infrastructure. Starting with physical security, the physical controls (access cards, keys, biometrics, etc.) must be assessed before moving to the next level of network access control (how do devices connect to your network?) and then moving to identification management (how do you connect, how do you authenticate?)

This process is stacked, and it’s essential to take care of the physical before you can get to the logical. Obviously every single one of those systems needs to be configured and must be able to provide a level of information – whether it’s logging or alerts – that can be used by the identifying system to determine what

actions to take.Data loss prevention is intrinsically connected to advanced cyber security, given that hackers will try to take, compromise, delete or damage your data or holds it to ransom. Your security strategy must extend to your environment and not only protect against people getting to the information, but from extracting data, which means having controls in place that prevent confidential information being emailed, copied or leaked.

Furthermore, companies need to be able to enforce the controls that they have selected to implement around the strategy. There’s no point in having a policy against copying data and emailing confidential information, if you don’t have the tools in place to prevent that action. Without such controls, a system cannot be said to be mature.

Successful cyber security depends on a strategy that has been designed with clear goals in mind. These objectives must be implemented through clearly articulated policies and made effective with the right balance of control and enforcement in order to manage and mitigate the risks that come with doing business in cyberspace.

working in ICT.ITIDA plans to build four innovation and creativity centres worth EGP 100m to create more job opportunities for young people in various provinces.Founding Executive Director, President and CEO of the African Institute for Mathematical Sciences (AIMS) in South Africa Thierry Zomahoun noted that African countries spend $4bn to bring in experts in all fields, despite the large base of human resources based in the continents, but lack training.He urged African countries to rely on local scientists and technology in the coming period to guide the expenses of attracting foreign experts for the

development of African countries and provide prosperity for their people.He added that the report of McKinsey & Company indicated that the global income could increase by an average of $33m if women are given equal work opportunities as men. The labour market in Africa sees 11 million new young men every year, while the needs are estimated at some 40 million people.Günter Nooke, the German chancellor’s personal representative for Africa in the Federal Ministry for Economic Co op er a tion and De vel-op ment, said that Africa spends € on ICT projects annually.He added that Germany will invest €38m in training programmes to

improve the future of African youth and prepare them for the job market.A number of African Ministers from Sudan, Nigeria, Gabon, Togo, and Zimbabwe, as well as several business people, academics, and analysts, in addition to experts, including Nooke, attended the ceremony.Elham Mahmood Ibrahim, commissioner of the African Union for Infrastructure and Energy, and Thierry Zomahoun also attended the ceremony.eLearning Africa is the largest and most important networking event for the promotion of development, improving education, and raising the quality of training in the field of ICT across Africa.

It’s safe to say that doing business in a digital world without cyber security is not a smart move. Obviously, all businesses have some sort of online presence and, whether email or ecommerce, companies are exposed to more risks than they were in the past.

Many business and commercial transactions and interactions now take place online but despite opening up the possibility of collaborating with partners and clients across the globe, these same connections could also potentially provide access to malicious individuals that want to hack your company’s network and compromise its position.While the technology that enables digital commerce and mobile productivity evolves constantly, the malicious technologies designed to compromise business systems evolve just as quickly. From phishing and whaling attacks to ransom ware, hackers are always thinking up new ways to compromise critical systems and so organizations need to think about improving their security monitoring and vulnerability management, which often involves advanced security solutions. In light of the fact that each organization

is unique, with its own specific requirements and working processes, advanced security solutions cannot be called to task like a silver bullet. Before new technology can be implemented to prevent cybercrime, certain foundations must first be laid in order to effectively leverage advanced cyber security technology. Organizations first need to reach a certain level of maturity in terms of security, which means they must have the basics in place, first.

Start at the beginning The first step in addressing security monitoring and vulnerability management is the development of a cyber security strategy. This strategy should consist of various controls and technologies that can allow potential risks and attacks to be identified timeously. One of the biggest problems with detection of cyber attacks in the past was that the company might not know that they’d been hacked or even when it happened and that intruders were stealing information and had been doing so for months, even years, without their knowledge. With today’s technology it is possible to develop a strategy that allows us to actively and proactively monitor all systems, and detect any intrusions as

easily as possible to allow for quick response and effective reaction. From a preventative point of view, it’s important to look at controls like intrusion prevention systems, advanced threat protection, as a first line of defense.Additional technologies assume that these first controls did not work. For

As more people transact banking and business online, experts raise questions about security from hackers targeting the continent. Amid global alarm about cyber theft, authorities warn that banks and other businesses and institutions in Africa are increasingly vulnerable to online fraud and theft.

African and international cyber security experts, including representatives of government and the United Nations, will gather in Nairobi in June to discuss online threats and how to fight them.

As more Africans use the Internet, businesses and governments are providing more transactions and services online. But experts are raising questions about whether those sites are secure from cyber

CYBER THREAT LOOMS OVER AFRICA


CYBER THREAT LOOMS OVER AFRICA (CONT)criminals.Many small and mid-sized businesses cannot afford expensive security measures such as firewalls and malware protection while governments also use templates to build their websites, which cost less but may also be more vulnerable to attack.

Kenya, Nigeria, South Africa see attacks

Kenya, Nigeria and South Africa are among African countries that have already suffered millions of dollars in losses to cyber crime.Nigerian officials estimated the country’s institutions lost $630 million annually to cyber attacks, theft and software piracy, nearly one percent of the country’s gross domestic product while online bank fraud more than doubled.“Global tracking of cyber-attacks indicate that Nigeria is among the countries with high numbers of software piracy, intellectual property theft, and malware attacks,” Babagana Monguno, Nigerian national security advisor, said at the recent inauguration of a 31-member Cybercrime Advisory Council.Monguno called the threat “a serious challenge to our resolve to take advantage of the enormous opportunities the internet brings.”

Nigeria’s new Cybercrime Advisory Council, established through 2015 legislation, is charged with promoting information sharing and making recommendations designed to improve cyber security. The country’s National Cyber security Policy and Strategy outlines the legal, technical and institutional systems that will be required to fight cyber-attacks in Nigeria.

Kenya loss put at $150 million

In Kenya, authorities said online thieves took about $150 million in 2014, as cyber crime in that nation tripled over 2013.A 2015 report noted that 25 percent of Kenya’s Internet users are unsupervised teens that may be exposed to cyber crime.One expert said many businesses in Kenya lack the resources and access to IT expertise they need to protect their online platforms.

Rutendo Hwindingwi, division director for Sage East and West Africa, said businesses need to implement firewalls and use anti-malware tools and have access to IT specialists who can quickly respond when applications or operating systems are attacked.The Communication Authority of Kenya in April put out a call for tenders a study of e-commerce and cyber crime detection and prevention in the country as the government attempts to develop a strategy to fight cyber crime.The authority said it had set up a team to monitory cyber attacks, especially those that target government systems.

South African bank customers warned

South Africa has seen cyber crime losses totaling about $65 million, according to one estimate.The South African Bank Risk Information Center recently warned bank customers to pay more attention to security, especially on mobile phones.The center’s chief executive, Kalayani Pillay said protecting electronic devices is critical to reducing the risk of being victimized by cyber crime.Pillay said malware and phishing attacks were on the increase in South Africa, including efforts to target accounts of corporate executives to move large sums of money.The country’s wealth and particularly its relatively high gross domestic product per capita made it attractive to cyber criminals, she said.

Risk grows with mobile usage

Banks continuously update cyber security measures, but criminals come up with new ways to steal from customers, she said. The risk will grow as more bank customers migrate online, especially banking on their smart phones.The warnings come against a backdrop of global concern following two large heists this year at Asian banks.

In February, hackers sent more than 30 fund transfer orders totaling $950 million from Bangladesh Bank using Swift, a global money transfer system. The thieves successfully transferred $81 million to accounts in the Philippines.

In May, Swift revealed another heist had taken place prior to the Bangladesh theft but had only been revealed by the second bank, which one researcher said was in Vietnam. The amount of the theft was not released.

Hackers breach bank security

Swift, with 11,000 member banks, processes 25 million messages each day to process billions of dollars in transfers.In each case, Swift said the cyber thieves bypassed security controls at the local banks to request the transfers.

As concern grows on the continent, the African Expert Convention on Cyber Security, June 22-23 in Nairobi, brought together experts from government agencies, the United Nations, corporations and investors to discuss strategies for fighting cyber crime.

The aim of the event was to enable participants to share expertise from different sectors and create partnership frameworks for enhancing cyber security. Participants also learnt the latest technical tools available to protect against cyber threats.

A recent study conducted by The Software Alliance, also commonly referred to as the BSA, found that South Africa has drastically improved and strengthened its position in the global ranking with regards to its cloud computing policies. South Africa moved six places up from 2013, securing its 14th place out of 24 leading IT economies. This signifies the country’s adoption of cloud computing technology, a cost-effective solution that is key in building the emerging economy. ”This is an extremely positive step and we believe that South Africans will continue to notice the value in using cloud computing solutions.

By accepting the new legal and regulatory framework, South Africa is showing its commitment towards working within cloud innovation policies thus promoting cloud computing service providers to sufficiently move data across borders,” explains Henry McCracken, Regional Sales Director for Aspect Software – a global leader in enterprise cloud contact centre and customer experience solutions.Cloud computing far outweighs IT’s existing capabilities as

it creates a pay-per-use, on demand service that can be deployed in real time over the Internet. “Cloud computing is so unique in that it cuts down costs involved with increasing or adding capabilities that in other cases rely on new infrastructure. It also eliminates the time required to train users and technicians to maintain the system. Lastly, it enables one user or company to use the same service at one time. What makes it so well suited for our market is its resilience,” McCracken adds.

“The implementation of comprehensive privacy laws such as the Protection of Personal Information act and the laws in place for cyber-crime and electronic commerce were influential factors in South Africa’s improvement. According to the report, South Africa only has basic copyright laws, which are not in line with international best practice. There is still a great need for broadening Internet filtering and censorship,” he explains.The study grades the cloud computing readiness of the 24 countries that make up 80% of the world’s IT markets. Countries are ranked according to strengths

ASPECT SOFTWARE NOTICES AN INCREASE IN SOUTH AFRICA’S ADOPTION OF CLOUD’


ASPECT SOFTWARE NOTICES AN INCREASE IN SOUTH AFRICA’S ADOPTION OF CLOUD’A (CONT)

ENABLING ENVIRONMENT VITAL FOR IMPROVED INTERNET CONNECTIVITY

and weaknesses in seven major policy areas, including: data privacy, security, cyber-crime, intellectual property rights, support for industry-led standards and international harmonization of rules, promoting free trade, and IT readiness and broadband deployment.

Several countries made noticeable

improvements in the policy environment for cloud computing in the past year. Victoria Espinel, the President and CEO of The Software Alliance made mention to the fact that countries around the globe need to recognize that their policies affect the global cloud marketplace. “Our cloud solutions are dedicated to providing a flexible, scalable and

reliable platform for the customer experience that adhere to policy rules and regulations. We follow appropriate compliance programmes that promotes legal software use and supports public policies which encourage technology innovation,” McCracken concludes.

Transport and Communications minister, Tshenolo Mabeo has said African countries should create an enabling environment to improve Internet connectivity on the continent. Speaking at the official opening of the Africa Internet Summit in Gaborone, Mabeo said for the continent to be successful, countries must approach and take Broadband Internet as an ecosystem.

“This ecosystem means every aspect that is required to deliver service must be interconnected,” he said. He explained that networks, services carried through the networks; the applications they deliver as well as the users must be interconnected, noting that none of them can exist or succeed alone.

Mabeo indicated that the success or risks associated with the Internet, economic success and disruptive innovation, lie with the people.“As connectivity progressively underpins success in the era of knowledge-based economies, the critical question is how do we allow for networks to develop, ensure trust and security so we accomplish and harness the benefits of a digitally-connected Africa, while reducing the risks and vulnerabilities,” he

said. He noted that if it were left to governments to govern and prescribe how the Internet resource must develop, these dreams would be difficult to realize. He acknowledged that the Africa Internet Summit brings together a unique model that advocates for open, collaborative processes, adding that stewardship is necessary to ensure sustainable development of a truly global and inclusive Internet. Mabeo said this year’s theme, ‘Beyond Connectivity: Internet Working for African Development’ is in line with the universal Sustainable Developmental Goals (SDG). “A cursory look at some of the key SDGs will make someone begin to see how ICTs are key in facilitating access to key information to bridge the digital gap and create knowledge societies which are critical for economic and social development,” he said.The minister pointed out that the three pillars of sustainable development revolve around economic development, social inclusion and environmental protection, adding that these are accelerated and strengthened through ICT.

In the past 10 years, he said there have been mobile cellular penetration

levels in countries around Africa far exceeding the estimates set by the International Telecommunication Union (ITU).

“I believe that as we start to research and study these trends in the uptake of ICTs in Africa, we shall begin to understand Africa’s potential to develop its economy and people’s lives through ICTs,” Mabeo said.He added that the ITU Connect 2020 has set a target that 60% of the world’s population should be using the Internet by 2020 and that this is broadly equivalent to bringing another 1.5 billion people online.“These are exciting times for the ICT industry as we see countries in sub-Saharan Africa make sizeable investment in developing and deploying infrastructure such as 3G and 4G networks to enable connectivity,” he said.

With such efforts made by the ICT industry, the minister is adamant that Africa would contribute significantly to the 60% of the people using Internet by 2020.He further noted that Botswana has made strides on the development of the ICT sector, adding that through his ministry, the country has developed a Broadband Strategy,

which provides a holistic and coordinated approach to the implementation of the ICTs ecosystem in the country with a view to achieving long-term strategic outcomes.

AFRICA’S ‘FORGOTTEN’ BUT GROWING INTERNATIONAL SECURITY THREAT: THE INFORMATION REVOLUTION

The rate of uptake of technology on the continent has been dizzying, but the pitfalls could be deeper if not anticipated.IN May, Rwanda to wide international attention hosted the World Economic Forum on Africa, highlighting the nation’s steady progress over the last two decades.

Part of the plaudits stemmed from using technology to change the lives of citizens, from automating fare collection in buses to delivering essential services, with backing for this coming from strong partnerships, according to the host’s city mayor, Monique Mukaruliza. Nifty entrepreneurial adopters there are also reducing their cost of entry to trading internationally, helping grow their export markets including through e-commerce.A departure with many other regional countries is that the push comes right from the top: president Paul Kagame oversees the Smart City initiative of the AU-backed top-level SMART Africa project, in addition to being co-chair of the Broadband Commission for Sustainable Development.It is key—your writer has been recently around the block in many African countries, and it is easy to spot those where a digital economy is only lip service.

The theme in Kigali was ‘Connecting Africa’s Resources through Digital Transformation’. But beyond the essential focus on catalyzing growth-using digitalization, was a less underplayed theme—that technology has rapidly become an international security issue, Africa included.International security still tends to be viewed through the Cold War prisms of statist-led interventions, many of which have their roots in realism—the predominant political theory that is about a country’s military strength. Even after the détente and the

growth of competing collectivist or constructivist approaches, this thinking has persisted, as the skirmishes between the West and Russia show.But the information revolution should not be overlooked. It has quickly turned into a diplomatic relations arena in itself. A bone of contention in recent tensions between US and China has been that of cyber security, particularly over intellectual property.Advances in IT now cut across national borders, from the transfer of money electronically to hacking and big espionage.

Strike balance

The challenge is striking a balance between an information and data intensive age that is increasingly the lifeblood of many businesses and governments, and the right amount of vigilance that does not increase threats or harm commerce.Many African governments are pushing on with national e-government plans, but have not

invested as much in security of such data, leaving them at risk of debilitating attacks.Last year the State of Internet Freedom in East Africa report was released, showing as expected increasing access and penetration in the region. But cybercrime such as identity theft, website hacking, fraud and online violence against women was also prevalent.An estimated eight in every 10 computers in Africa are estimated to be infected with viruses, while cybercrime has been spreading fastest in the region than anywhere else in the world.

Research shows a correlation between economic growth and cybercrime, a red flag for a continent growing above the global average, but also even less financially developed economies are not spared, according to the UN’s Economic Commission for Africa.This is where Rwanda earns its stripes. In March 2015, the country approved the National Cyber Security


AFRICA’S ‘FORGOTTEN’ BUT GROWING INTERNATIONAL SECURITY THREAT: THE INFORMATION REVOLUTION (CONT)

AUTOMOTIVEGM revises South Africa output schedule as economy slows

LATIN AMERICA PIPS AFRICA TO BE INDIA’S LARGEST AUTO EXPORT MARKET

Policy aimed at safeguarding data from cyber attacks. The country’s police have also set up a Cybercrime and Digital Forensics unit. In April that year, the ICT ministry launched a “Stay Safe Online” campaign aimed at raising public and organizational awareness on the current cyber security threats and ways of preventing them.

Other African countries can borrow from Rwanda, which is punching above its weight in this area, either in practice or in the role of the government’s hierarchy.

Urgency

There is also urgency. The buzz is now of a ‘4th Industrial Revolution’ which anchors the continent’s ‘smart development’ —think the Internet of Things— and which brings together previously disjointed fields such as artificial

intelligence, machine learning, robotics, 3D printing and biotechnology, all building and amplifying each another, and making things easier, and more efficient. With the race toward this, is important for the continent to have the basics in place first, including its policies and skills base, or risk being swamped by sophisticated threats.This also has a direct role on Africa’s economic development, and consequently its future. The role of mobile technology in ‘leapfrogging’ the continent towards inclusive growth has been well documented—M-Pesa’s role in financial inclusion continues to be celebrated.As the continent seeks to accelerate its growth towards meeting 2030 development goals, it will need to be aware of the trapdoors to avoid. But as its dizzying adoption of technology has shown, it can also leapfrog into the security age.

General Motors has adjusted output levels at its South African assembly operations and is considering options including voluntary job cuts as the automaker prepares for a further drop in local sales.“Due to the deterioration in the economic environment and the anticipated resultant decline in vehicle sales, we have revised our production schedule,” spokeswoman Denise van Huyssteen said in an emailed response to questions. “We are currently considering all alternatives, including voluntary separations, to minimize the impact of these changed circumstances on

our business and on our employees.”South Africa’s economy is expected to expand at the slowest pace this year since a 2009 recession, according to government and central bank estimates, and business confidence in the continent’s most industrialized economy fell to the lowest in almost 23 years last month. Domestic new-vehicle sales declined in 2015 for the second consecutive year and are expected to fall further in 2016, according to the National Association of Automobile Manufacturers of South Africa.General Motors assembles the Chevrolet Spark, Chevrolet Utility and

Isuzu pickups as well as Isuzu trucks at its Port Elizabeth operations in South Africa’s Eastern Cape province, according to the company’s website.The automaker is engaging with unions, Van Huyssteen said. She declined to provide details of the production changes.The local units of automakers including Ford Motor Co. and Volkswagen AG start wage negotiations with South African workers this week, hoping to avoid a repeat of crippling weeks-long strikes that have paralyzed the industry in the past.South Africa’s automotive sector is

Latin America, the furthest export market for India, has overtaken Africa to become the largest for vehicles shipped out of India. As much as a quarter of vehicles exported out of India in value terms went to Latin America in the last financial year, compared with 21% the year before, latest industry data show. Exports to Africa fell for the first time in a decade.

India exported buses, trucks, cars, motorcycles and chassis fitted with

engines worth $8.86 billion (Rs 59,360 crore) in the year ended on March 31, 2015.

While overall vehicle exports remained almost flat, shipments to Latin America jumped nearly 19% to $2.26 billion. There is a huge logistics cost involved in shipping vehicles to Latin America, some 15,000 km away from India.

But India’s highly cost-effective manufacturing capabilities and

government incentives are helping offset some of the impact, say industry experts. Some automakers that weren’t doing well in the domestic market were only too happy to utilize the opportunity offered by a market with profiles similar to India, as it allowed them to keep their factories running here. “India is known for its frugal engineering, which enables automobile makers to manufacture vehicles here at competitive costs,” said Puneet Gupta, associate director

at consultancy firm IHS Automotive.“Of course, there are freight costs involved in shipping vehicles to Latin America. But if you look at it holistically, exports help companies improve capacity utilization, better productivity of hired workers, gain economies of scale and meet commitments made to suppliers.” Europe continued to totter. Though the share of vehicle exports to the European Union improved marginally to 14% from 13% the previous fiscal year, it was still a far cry from fiscal 2010, when the continent accounted for as much as 47% of total value of India’s vehicles exports. In percentage terms, Africa accounted for 23% of the value in fiscal 2016, compared with 29% the year before.

Falling oil and commodity prices, which helped automakers improve sales and profitability in the Indian market, are blamed for the distress in Africa, where commodity dependent economies such as Ethiopia, Angola, Algeria and Nigeria are hit badly by the price plunge. “The fall in crude oil prices has hit the dollar revenue of many countries in Africa. They now prefer to use dollar for import of essential items,” said Sugato Sen, deputy director-general of the Society of Indian Automobile Manufacturers. “We have requested

the government to allow rupee trade so that exports to these countries improve.” Even as the African market proved to be a challenge, the depreciation of the rupee pushed automakers to explore markets in Latin America. That, at a time when the Indian government is working towards developing Latin America as a bigger market for the country’s exports to offset slowing or shrinking shipments to its traditional markets.

European carmaker Volkswagen is among the largest exporters out of India to Latin America. Of the 70,000-odd vehicles Volkswagen India shipped out in 2015, as much as 63,000 — mostly the Polo and Vento — made their way to Latin America. The made in-India Vento, which replaced Jetta Classico, has been well accepted in Latin American markets, especially Mexico. It was second on the list of top selling cars in Mexico in the first six months of 2015; show data available with VW India.

Andreas Lauermann, managing director at Volkswagen India, said the growing demand from Latin America has helped the company offset the decline in Africa. Hyundai, which is the largest car exporter from India, shipped more

than 49,000 cars in 2015 to 32 countries in Latin America. Latin America, in fact, accounted for 29% of the company’s total exports out of India last year. Its made-in-India portfolio in that market comprises the Eon, i10, Grand i10, XCent, i20 Elite, i20 Active and the Creta.

General Motors ships the Chevrolet Beat from India to Latin America, while rival Ford exports the Figo and Figo Aspire. Suzuki Motor sells the Ciaz made by Indian unit Maruti SuzukiBSE 0.58 %. Incentives offered by the Mexican and Indian governments help in mitigating logistics expenses.

Lauermann of Volkswagen explained: “Mexico offers exemption of duties on imported cars for a number equivalent to 10% of the total production of cars done by the brand in Mexico. So, number of cars up to 10% of Volkswagen production in Mexico can be imported by Volkswagen into Mexico, without having to pay import duties on it. Add to that the good cost and quality position of our manufacturing in India, and it forms a good business case.”

4 8 | J u n e 2 0 1 6 Africa Engineer

a success story in an embattled manufacturing industry. Trade and Industry Minister Dr Rob Davies on Tuesday credited the success of the sector, in part, to the country’s long-term policy certainty and incentives developed under the Industrial Policy Action plan (Ipap), which was now in its eighth iteration. “We are in a much better position now than what we would have been without the Ipap implementation,” he told media on the sidelines of the Manufacturing Indaba. “We may not even have [had] an automotive industry [without it],” he added, stating that policy certainty had enabled South Africa’s automotive industry to avoid the same fate as Australia’s automotive industry, where all production was set to cease in 2017.

Further, the success of the Automotive Production and Development Programme (APDP) could provide a template for the Department of Trade and Industry’s (DTI’s) future incentive programmes in other sectors. Davies was previously quoted as saying the R7.8-billion in incentives disbursed through the APDP, had unlocked R28.5-billion in investments by original-equipment manufacturers and contributed to more than R150-billion in exports in 2015.

This comes as German vehicle manufacturer BMW reiterated its long-term commitment to South Africa, expressed through a R6-billion investment at its Rosslyn

plant. “When we look at manufacturing . . . we compete against other BMW plants globally,” said BMW South Africa’s Bongani Mshibe, noting that when its parent company examined investment strategies, it took into consideration factors such as logistics, the environment, consumer demand and skills in determining where to inject funds. The plant planned to produce the BMW X3, with the sports utility vehicle market said to be the fastest-growing segment globally, he told delegates during a panel session at the Manufacturing Indaba.

Further, South Africa provided the company a platform to launch into the rest of sub-Saharan Africa, as well as the opportunity to expand localization through potential local battery production or even engine assembly, which would offer a significant job creation and skills development opportunity for the country.

Meanwhile, the DTI was in the process of drafting a “post-2020 Automotive Master Plan”, a successor programme to the APDP, which was scheduled to come to an end in 2020. It was said that the entire automotive sector would be reviewed to include light, medium and heavy vehicles and motorcycles, with the DTI aiming to secure “higher levels of investment and production, higher exports, deeper localization and expanded employment”

Automotive sector part of South Africa’s manufacturing success story – Davies

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