Issue 25
MTN South Sudan : Initialising Telecoms in an Emerging Market
Initialising Telecoms in an Emerging Market MTN’s presence in South Sudan has proven that with the right attitude and product offering, tough market conditions can be overcome and negative perceptions about the investment environment can be changed Writer: Emily JarvisProject Manager: Donovan Smith When South Sudan became independent on the 9 July 2011, MTN formalised its operations as a separate operating company, expanding its previously limited space in the young nation. As a company in the early stages of its life, MTN South Sudan is now working to address the existing economic development gaps and also improve its infrastructures in a sustainable manner. Top on the agenda as well is MTN’s social responsibility as a corporate citizen.“Our strategy for deployment in South Sudan is to focus on the basics; namely working on deploying adequate infrastructure such as new telecoms towers and identifying partners to help us increase our capacities,” says MTN South Sudan CEO, Philip Besiimire.“Unlike traditional markets, South Sudan is one with defining needs. By this I mean that even though telecommunications is in the early stages here, we still have to provide the best and the latest services that match availability elsewhere in the world,” he adds. Platform for growthBeing part of the South African-based multinational mobile telecoms company, MTN Group allows the South Sudan operation access to tried and tested methodologies and pre-defined technology strategies that help achieve a vision of affordability and access on the continent.“Those who have encountered our name before will recognise our strong branding and reputation that we have among African audiences as…
Mantrac Nigeria
Riding the Storm Mantrac Nigeria is using its extensive reputation and expertise, as well as its international influence as Caterpillar’s sole dealer, to overcome Nigeria’s market slowdown Writer: Matthew StaffProject Manager: Ben Wigger Mantrac Nigeria is capitalising on its international reputation and experienced team in the country to successfully defend its market position in a sector that continues to challenge and test efficiencies.With 2015’s general election within Nigeria leading to business dramatically slowing down across the wider industry, the need to improve internal operations and cement itself as a preferred partner for equally challenged customers has never been more significant.A company as established and widespread as Mantrac though has been able to rise to the challenge in as positive a way as possible, and is in the process of maintaining and consolidating in the present, while keeping an eye on future growth.“The significant growth we had experienced in previous years has helped us to maintain our market share during this period,” confirms the company’s Strategic Planning and Marketing Manager, James Agama. “The pace at which the construction industry is growing at this time in Nigeria has been very slow since 2014 but we still ended that year well in terms of the numbers we achieved.“We decided, going into 2015 as well, we will aim to maintain and defend our market share.”Mantrac Nigeria has subsequently ensured that it makes the most of the 10 branches it has stationed in the country servicing the world-renowned Caterpillar brand, as well looking into new supply chain opportunities as part of an extensive drive for improved…
Africell Group : Challenging the Telecom Landscape
COO Elias Arwadi believes that Africell will play a key part in the development of Africa’s telecoms sector, a sector that is becoming the main driver behind the rise of the continent as a major economic player.
J.R. Goddard Contracting Zimbabwe
J.R. Goddard Contracting has diversified and expanded its services extensively over the past 32 years, but retains its commitment to sustainability and its people throughout.
Met Group
Raising the Bar MetGroup is staying true to a Group business model that has already improved industry standards via its 11 operating companies to become the mining industry’s contractor of choice Writer: Matthew StaffProject Manager: Arron Rampling MetGroup has risen from a medium engineering group to a respected mining and engineering contractor supplying services globally through a one-stop-shop value proposition, and is now striving to raise the industry bar even further through its 11 operating companies.Diversification has enabled the company to look beyond the entire business spectrum, creating a platform for success and high performance delivery, which consolidated in South Africa in 2005; becoming an “energetic, driven and multi-faceted organisation housing a comprehensive range of expertise to the infrastructure, mining, shaft sinking, construction and manufacturing sectors”.In every strategic decision made during this development, however, has been the underlying goal of meeting customer satisfaction, adhering to the latest industry trends, innovations, and ensuring a sustainable future for both MetGroup and its business partners.“What MetGroup establishes in each company is to create diversity within the Group, but also to create a profit centre for each company in their own right, accommodating the needs of the Group itself, and the customers they serve,” explains the organisation’s Group Commercial Director, Dr. Hein Jantzen. “This value proposition therefore creates a platform for a one-stop shop solution.”The subsequent result of this turnkey offering has been long-term client relationships; a more comprehensive adherence to safety, health and the environment due to the more focused nature of each individual subsidiary; and a more extensive employment drive across its…
Moldon
Taking the Brand Forward As first-hand experts in the food and drink industry, Moldon continues to actively involve itself in the market in order to gain brand exposure and build a reputation for quality and efficiency Writer: Emily JarvisProject Manager: Josh Hyland Changing needs across the food and drink industry have depicted Moldon’s business strategy over the years, shifting from a steady bottle collection service for one of the leading manufacturers of alcohol in Zimbabwe, to a one-stop shop for distributors and end users in the foodservice industry in the country with more than 5,000 product lines available. Taking on virtually every aspect of the industry over the course of the past four years, General Manager Karl Klein is proud to say that Moldon now has solid foundations from which to grow its market presence: “We have shown the courage to invest and are looking to take on board more brands and product lines to get the Moldon name out there through our marketing focus.“The company is continually approached by organisations who want us to provide distribution services for them,” he says.The bottle collection service turned into collection and delivery, and then through prospering relationships with the distilleries, Moldon began to import and distribute popular alcoholic beverages such as Savanna & Hunters. “We built up a portfolio of beverage products and decided to buy into the food industry as well, starting with Liberty Foods. Now, we work with some of the biggest international brands such as Unilever, Carte D’or, Knorr, Kelloggs, Tiger Brands and since 2014, Nestlé. Eventually, we took…
Major Drilling
Southern Africa’s Partner on the Ground Major Drilling is one of the major players in the global mining sector and is using its expertise and reputation to overcome current industry challenges on the continent Writer: Matthew StaffProject Manager: Arron Rampling Major Drilling is capitalising on its international reputation and mining expertise to weather a general slowdown in the market.With commodity prices at or near cyclical lows, the competition for projects is all the more fierce, but Major Drilling has the benefit of being a longstanding, leading player across the global sector.Based in New Brunswick, Canada, the company’s replication of its international success, in Southern Africa, has been an ongoing process since 2007 following the acquisition of the Longstaff Group of Companies.“Our history in the region is fairly recent but our main focus remains that of the wider company, to provide specialised drilling services to the mining industry,” explains the Group’s Southern African Regional Manager, Greig Rodger. “As one of the very well established global players in the industry, we operate very specialised services including circulation drilling, multi-purpose drilling, directional drilling, environmental drilling, and shallow oil & gas drilling.“Typically, the more challenging areas of drilling are where we specialise.” Global company, acting localThe company’s operations in Southern Africa currently comprise a 250-strong workforce carrying out these highly complex projects for its range of international and regional customers.Balancing the global influence with local considerations is something that Major Drilling has had to pay close attention to over the past six years and is something that Rodger believes is one of the key…
Kenblest Group
The Right Ingredients for Success Business has remained steady for Kenblest over the past year and the increased capacities from replacing its ovens and machinery are sure to encourage future growth in the Kenyan market Writer: Emily JarvisProject Manager: Callum Philp With an extensive family-orientated company history, Kenblest has seen rapid expansion in recent years thanks to its investments in high quality machinery that allows for increased capacities, timely product delivery and generating added value through the use of local suppliers.With roots tracing back to 1937, the incorporation of ‘Shah Kanji Ladha and Company’ in Thika, Kenya, by Kanji Ladha Shah marked the beginning of the company footprint in the country. The shop located in the centre of Thika town, traded in textiles and general goods. Mayur Mohanlal Shah joined in 1981, having graduated as a pharmacist from John Moore University and completed a Diploma in Baking in the United Kingdom.Given the company’s initial experience of baking and the Kenyan market, the directors identified a large gap in the industry for good quality bread; and so plans were drawn up to expand into the bakery industry, resulting in the incorporation of Kenblest Limited. In August 1982, the Kenblest bakery was commissioned with the prime objective to manufacture and deliver good quality and affordable bread to Kenyan consumers.Since this time, the company has focused heavily on combining international business practices into the inner workings of Kenblest bakery. Through dedication and hard work, coupled with strong business acumen, Kenblest flourished and within four years the bakery expanded its capacity from 80,000…
White Rivers Exploration : The Next Generation of Mines
White Rivers Exploration has been compiling significant tenement holdings and drill hole databases for the past eight years and is now entering a landmark milestone phase of its evolution in the Witwatersrand Basin.
Nampak Bevcan
Unlocking Value Across Africa Already established as the packaging leader in Africa with operations in 11 African countries outside of SA, Nampak continues to take advantage of the continent’s upward growth trajectory Writer: Emily JarvisProject Manager: Ben Wigger Since its inception more than 50 years ago, Nampak Bevcan has demonstrated its capabilities in the manufacture and supply of beverage cans across the African continent to become known as one of Africa’s leading lights. Throughout this prosperous existence, the company’s footprint has gradually grown to include surrounding markets such as Namibia, Botswana, Zimbabwe, Mozambique, and most recently Angola and Nigeria.Throughout its operations, the launch of the “buy better, make better, sell better” business improvement initiatives, as well as concerted efforts to improve the company safety record continue to drive Nampak forward. In 2014, the Group achieved a Level 3 BBBEE rating, an improvement on the Level 4 rating in 2013.In South Africa, the business environment is set to remain challenging this year, however, Nampak will continue to focus on ways to unlock value from its base business. Efficiency gains from the conversation of many of its beverage can lines to aluminium from tinplate, as well as from the new glass furnace, are expected to contribute earnings in the year ahead. Moreover, Nampak is strategically well-placed in the rest of Africa, with strong market positions and a growing presence. The Group is pursuing its strategic objective to accelerate growth in the rest of Africa to ensure that this side of the business contributes to sustainable earnings growth in the long term. Bevcan Nigeria…
Jindal Mozambique
Entrenching its Foothold in Africa With a total resource of 1.2 billion tonnes of coal, Jindal Mozambique looks to improve local infrastructures in order to secure long-term growth of its export operations Writer: Emily Jarvis Project Manager: Arron Rampling As part of the $18 billion conglomerate Jindal Africa Group, Jindal Mozambique is working hard to embed and expand its presence in the country through sustainable development of the Chirodzi Coal Mine, which produces coking and thermal coal. Backed by the government of Mozambique and with financial support from Jindal’s parent group, all coal from the mine will be exported overseas to India and its geographic location makes for a convenient direct delivery system across the Indian Ocean.“The Jindal brand is recognised as a key international player in the mining industry worldwide and has a substantial footprint across the African continent,” says Country Head Chandra Singh, Jindal Mozambique.Jindal’s first export shipment in May 2013 marked the achievement of first phase production levels of three million tonnes of ROM at Chirodzi, and there have been significant steps towards improving the coking coal yield via the addition of a floatation plant as well as providing adequate training to staff, expanding the washing plant and the mine’s other facilities. Africa Outlook spoke with the company as it begins to work on the development of two power plants that will make it possible for Chirodzi to become a cost effective export operation, securing the long term growth of the mine. Project detailsLocated in the Tete Province and with a projected lifespan of 25 years, Chirodzi…
Senior Flexonics
The Senior Name in Flexible Manufacturing Senior Flexonics’ influence in South Africa has grown exponentially over the past 18 years, riding the economic challenges in recent years to remain an internationally renowned partner of choice Writer: Matthew StaffProject Manager: Nick Norris Senior Flexonics is replicating its global successes in South Africa as it looks to master the art of being an international company, acting locally. As a wholly owned subsidiary of Senior PLC, South Africa’s arm represents the Flexonics division of the wider organisation’s remit, operating primarily in the automotive manufacturing and energy markets.While the wider Group also comprises an aerospace, defence, fluid conveyance and gas turbine entity, Senior Flexonics’ presence in South Africa was established with this specific automotive angle in mind.“The Senior Group manufactures, designs and markets high-tech components and systems for the major equipment producers in the aerospace, defence, land vehicle and energy markets,” confirms the company’s Managing Director (MD), Anthony Mancini. “We fall into the Flexonics division looking after land vehicle emission control systems as well as industrial process control systems.”Under this strategy, South Africa’s subsidiary was initiated in 1997 to bring the company closer to an existing multinational customer.In producing flexible exhaust connectors to tier one suppliers in the region, the company has since diversified and expanded, again in line with its customers’ own migrations and demands.“What you find with Senior Flexonics today is that we’re looking at different customers who are operating on a global scale and who are looking for local operations where they’re based,” Mancini continues. “The initial impact of that…
Mbuyelo Group
Exploring the Possibilities for Rewarding Returns Backed by ambition and a wealth of industry knowledge, Mbuyelo Group hope to seize as many opportunities as possible and create a sustainable environment for local South Africans Writer: Emily JarvisProject Manager: Arron Rampling Conceptualised in an internet cafe by now husband and wife, Mr and Mrs Siweya, Mbuyelo Group - meaning “return” or “rewards” - is predominantly a coal mining company that has been driven by a strong work ethic and guided by a wise leader since the very beginning.When the Minerals and Petroleum Resources Development Act 28 (MPRDA) came into regulation in 2002, this change to the mining charter in South Africa gave Siweya the opportunity to enter the mining scene. “The Act increased interest in South Africa from a mining perspective and therefore, we positioned ourselves accordingly and applied for as many mining assets as possible, and the rest is history; the company developed from strength to strength,” says Rirhandzu Owner Siweya, CEO of Mbuyelo Group.Admirably, with the help of his wife and brother, Siweya generated the resources to secure his vision using tight budgets and through building relationships with partners to develop the Group’s assets.“Through various valuable partnerships with companies from around the world including London (UK), Canada, Australia and India, we were able to build the necessary technical and financial skills set so that we could stand on our own with an attractive portfolio of operations,” he adds.Moreover, the subsidiary Mbuyelo Coal’s continued presence at the Mining Indaba for the past couple of years has proved fruitful for…
Papercor Holdings
Merchants with National Reach With flagship SAPPI product, Galerie Art showing huge uptake potential, Papercor continues to make a name for itself in South Africa’s printing and packaging industries Writer: Emily JarvisProject Manager: Nick Norris Papercor cc was founded in Johannesburg more than 28 years ago by Geoff Saks as a mini paper merchant, focusing primarily on the smaller printers and retailers of paper products in the Johannesburg and Pretoria areas. In May of 2013 Papercor Holdings (Pty) Ltd, under the ownership of Raymond Blake, Ian Falcon and Dean Le Touze, bought the business from Saks with the objective of expanding it with increased specialised products as well as growing the national footprint.Blake, Managing Director, closely supported by Le Touze, Sales Director, have between them more than 50 years’ experience in the paper merchanting industry in South Africa. Falcon, Commercial Director, though not from the paper industry offers the company more than 30 years of business knowledge and experience. Under this management team, Papercor supplies paper and board products to the South African printing and packaging industries via its comprehensive paper and paper conversion services. A paper merchant is best described as a company which buys paper products, warehouses them and then supplies them to the print and retail industries. For Papercor, the focus has been to buy from recognised major producers around the world that follow acceptable and acknowledged environmental practices and who are renowned for their quality, and sell paper and board products to the printing industry in South Africa.“In essence, we supply the right size paper and board…
Coca-Cola Sabco Mozambique
Achieving Together to Become World-Class With an estimated consumer base of 24 million people in Mozambique, Coca-Cola Sabco has been increasing production capabilities nationwide by stabilising its distribution network and investing in state-of-the-art equipment Writer: Emily JarvisProject Manager: Josh Hyland For the past few years, the Mozambican economy has been experiencing a prosperous GDP growth of between seven and eight percent; this is of course having a positive impact on businesses in the country, helping to provide much needed support to local infrastructures. Sabco, the South African-based flagship bottler for Coca-Cola’s African operations, has reaped the benefits and invested heavily in further developing its operations in Mozambique.When Africa Outlook spoke to Country Manager Simon Everest two years ago, he had big plans to grow the Coca-Cola brand presence in Mozambique, expecting double-digit growth figures and an increase in PET (polyethylene terephthalate) production locally. Since this time, the company has hit its targets thanks to closely examining its route to market approach by bringing distribution capabilities in house, significantly developing its warehouse and investing in people power.“Traditionally, we have relied on third parties for distribution which was a costly exercise. Now this has changed, we have increased capacity and are on the lookout for new merchandising partners to invest in the business that will live up to our high standards and hold enough stock going forward,” says Everest.Coca-Cola is strategically placed throughout Mozambique with three plants – Nampula serving the north, Chimoio serving central regions and Maputo in the South. In relation to the changing nature of the beverage…
Microelettrica Scientifica
Microelettrica South Africa: Localisation in Action Since gaining a presence in South Africa in 2002, Microelettrica Scientifica has successfully adopted a localisation strategy and BBBEE initiatives that will drive local content production Writer: Emily Jarvis Project Manager: Tom Cullum Headquartered in Italy, Microelettrica Scientifica has been designing, developing and producing electro-mechanical equipment for some of the most advanced and demanding applications of railway transportation, urban mobility and industry around the world.Since expanding its geographical footprint into South Africa in 2002, the company started small; assembling braking resistors for locomotives and importing contactors and relays from the Italian parent company. The market demand for Microelettrica products grew swiftly and product availability grew in conjunction with this to include high speed circuit breakers, protection relays, switchgear, fans, power converters, transducers and metering equipment. “Our South African customer base rapidly grew and company success can be seen in our turnover, which has grown at an average of 25 percent a year over the past five years,” Microelettrica South Africa’s Managing Director, Senny van den Oever says.Accompanying this high level of growth is a company mission to adopt both a localisation strategy and maintain a very high level of Broad Based Black Economic Empowerment (BBBEE), in which Microelettrica currently holds a level two status with 125 percent recognition. “The BBBEE initiative is taken very seriously in South Africa and there are strong demands from both regulators and customers, hence the continuing focus for us. Our high compliance level means that for any company that purchases from us, for every one rand spent, they get recognition of…
Gulf African Bank
Opening Doors in Islamic Banking By re-focusing the bank’s business model on SME and insurance products, Gulf African Bank has continued to grow its name as the Kenyan leader in Islamic Banking Writer: Emily JarvisProject Manager: Donovan Smith Since last speaking to Africa Outlook in 2014, the award-winning Gulf African Bank (GAB) has gone from strength to strength, leveraging its position as Kenya’s largest Islamic bank to grow both the brand and continue to innovate its product range. Recognised by M & A Today and Islamic Finance News as the Best Islamic Bank in Kenya, these triumphs have functioned to widen the profile of the Bank to emerge as the frontrunner in Islamic Finance regionally.Showcasing its diverse offering once more, Abdalla Abdulkhalik, CEO and Board Member of Gulf African Bank says that growth in different segments within the bank coupled with geographic expansion has contributed to maintaining its expansion levels.“Our strong position has enabled us to engage in new partnerships regionally and internationally, engage in product diversification to include insurance, re-focusing the bank’s business model through the formation of a singular business unit for easier delivery, especially for micro and macro businesses, improvement in quality and quantity of marketing and a strategic shift in investment to customer and business innovation,” says the CEO.With GAB’s Return on Assets (RoAs) currently standing at an impressive 3.12 percent and a jump in after tax profit levels by 41 percent, a continued focus on SME products and financing services has served to firmly cement the bank’s leading position in the market, even as more…
National Bank of Kenya
Bank on Better The National Bank of Kenya is focusing on heightened security and convenience-driven innovation in 2015 as it stays true to both its short and long-term goals Writer: Matthew StaffProject Manager: Donovan Smith The National Bank of Kenya’s ongoing strive for industry innovation and customer satisfaction continues to fuse short and long term goals as 2015 promises further physical and virtual expansion.In 2014, the company was in the midst of a significant growth plan which incorporated not only the addition of 12 new physical branches and 20 new ATMs, but also a concerted move into online and mobile banking.This overall distribution network expansion remains one of the institution’s core ambitions this year too, improving the level of virtual and physical access points for its customers, while also introducing new and futuristic solutions to keep ahead of the industry curve.The company’s Chief Executive Officer (CEO), Munir Sheikh Ahmed explains: “We will look to grow the amount of products and services significantly this year, putting in place 15 additional branches to the 12 opened last year, but also in growing new business segments in the form of microfinance and our Chinese business segment.“The other unique strategy this year is to bring down the costs of operations by automating and digitising lots of back office works that are currently semi automated or entirely manual.”Arguably one of the biggest introductions currently being initiated by the National Bank of Kenya though is the influx of agency banking outlets across the country, fusing both its growth strategy and its dedication to localisation and…
Natsure
Refined Focus for Niche Underwriters After identifying a gap in the South African market for short term insurance, Natsure has a solid business strategy that will take the UMA to new heights Writer: Emily JarvisProject Manager: Callum Philp Natsure is a niche, specialist short term insurance business that operates predominantly through Underwriting Management Agencies (UMAs), with roots tracing back to underwriting in the hospitality and homeowner industries. The company has changed its whole structure from Natsure Insurance eight years ago to address a gap in the market for short term underwriting, which is an area that Executive Director, Tersia Davey believes is one of growing interest. “In South Africa, you have the opportunity to be an underwriting manager and we do this via our wholly-owned Guardrisk Cell Captive arrangement, which means we can inject our own style and formulate our own risk appetite into our product offering. We are also tribunalised by Lloyd’s and an underwriter for two Lloyd’s syndicates, Amlin and Marketform,” explains Davey.The company has a myriad of niche insurance products including; aviation, engineering, renewable energy, construction guarantees and bonds, general and professional indemnity liability insurance, personal accident, goods and transit, marine, court bonds, liquidation bonds, cyber liability, short term rental deposit guarantees and insurance for the leisure vehicle owner (caravan and content insurance).Due to changing legislations in insurance practices across South Africa, some companies are choosing to change their strategy towards UMA models including divisionalising these UMAs. However, Natsure holds a strong belief that backed by its principles it can strategically enter the right markets and do…
Access Bank Ghana
Treating the Customer as King Access Bank Ghana continues to bring the latest in financial services to as many people in Ghana as possible, via its extensive footprint expansion and digital diversification Writer: Matthew StaffProject Manager: Donovan Smith Access Bank Ghana was named Bank of the Year in the country, in 2013, in what industry watchers called a meteoric rise to the top of the sector. The Bank now looks to grow through its commitment to customer service, investments in innovative technology and a policy of sustainable banking practices.Launched in 2009 as a full service commercial bank licensed by the Bank of Ghana to offer universal banking services, Access Bank recorded a profit in its maiden year; a first for a new generation bank in the country.Since then, the institution has grown from strength to strength, adapting to regional and international finance trends and insuring it keeps ahead of the curve in providing the most extensive and fulfilling range of services possible.“Since 2009, Access Bank has maintained an upward growth trajectory across key financial indicators to give value and returns to all its stakeholders,” says the company’s Managing Director, Dolapo Ogundimu. “Access Bank’s growth during the first three years of operations was largely organic. The Bank expanded its reach to four locations in Accra and a first foray in Kumasi, the capital city of the Ashanti Region, bringing its total network to five branches. “Given its strategic intent to become a market leader, the Bank was always looking for opportunities for growth.”This opportunity came in the form of a takeover…
Victoria Commercial Bank : Quality Over Quantity
Victoria Commercial Bank has recently opened only its third branch in 28 years, but is recognised as the leading institution in the country through its unparalleled standards of customer service.
Airtel Rwanda
Rwanda’s Operator of Choice As a company driven by the vision of making mobile communications affordableand accessible to all, Airtel Rwanda has major plans to increase its customer reach through rural network expansion Writer: Emily JarvisProject Manager: Donovan SmithAirtel Rwanda has already made waves in the telecoms industry since entering the country three years ago. With big plans all-round to launch value-added voice and non-voice services, expand the network and adopt seven new service centres, the company is positioning itself to gain an increased market share and accelerate growth in rural areas.In 2014, Managing Director, Teddy Bhullar told Africa Outlook how network growth was being driven by consumer feedback in order to develop the company footprint in Rwanda. The response pointed towards a desire for increased data services across a wider reach.Speaking in 2015, Bhullar feels Airtel is on its way to accomplishing this: “The high mobile penetration rate of 72 percent in Rwanda has helped in our decision to add a further 126 sites for 2G and 100 3G/3.75G sites to our portfolio, and we recently commercially launched 4G alongside partners in the city of Kigali and soon in major towns around the country. Similarly, our competitive packages represent our strong drive to connect as many people as possible through the power of Airtel,” says Bhullar. Operator of choiceBoasting a 15 percent market share, Airtel Rwanda has become the operator of choice for data and affordable smart devices. The Airtel Money platform is also steadily taking centre stage. “Availability, affordability, innovation and speed-to-market are the key reasons for…