Issue 03

Ekurhuleni Muncipality

Ekurhuleni's Aerotropolis set for take off Key to Ekurhuleni municipality's 2055 Growth and Development Strategy is the aerotropolis masterplan. Africa Outlook has a look at the proposals. Writer Ian Armitage Project manager Stuart Platt It's no secret that there needs to be improvement in how South Africa is managed at a national, provincial and municipal level. According to the auditor general, only five percent of municipalities obtained clean audit reports in the financial year 2011/2012. There are currently 343 municipalities in the country and worryingly five of South Africa's nine provinces did not have a single municipality with a clean audit, including Gauteng, the country's economic engine. The Gauteng Province is divided into three metropolitan municipalities – City of Johannesburg, City of Tswane, and Ekurhuleni - and two district municipalities (Sedibeng and West Rand), which are further divided into seven local municipalities. In 2009, the Gauteng Provincial Government deployed a specialised team in Ekurhuleni to assist in accelerating 'the provision of services, infrastructure development and to deal with outstanding disputes'. The municipality had been facing challenges in its finances, infrastructure and planning. It also lagged behind in providing key services. The municipality requested that the provincial government step in and deploy a team to assist in the short term, isolating and resolving issues that may be impeding proper service delivery in specific areas. Much has since changed. But there is still work to be done. In his latest state of the city address, Mayor Mondli Gungubele talked at length about the municipality's 2055 Growth and Development

AON Benfield : Why Reinsurance?

AON Benfield is the global reinsurance intermediary and capital advisor of worldwide insurance, reinsurance and risk management specialist AON plc. Basically, it provides balance sheet protection to insurance and reinsurance companies.

Paradigm Project Management

Paradigm shift Is South Africa losing its status as the gateway to Africa? Not if Gauteng-based multidisciplinary mining consultancy Paradigm Project Management is anything to go by. Africa Outlook talks to Jeremy Clarke.. Writer Ian Armitage Project manager James Mitchell Contrary to concerns that, when it comes to mining, South Africa is losing its status as the gateway to Africa, recent research has found that South African companies that support the mining sector beyond the country's borders have in fact expanded. In One Thing Leads to Another: Promoting Industrialisation by Making the Most of the Commodity Boom in sub-Saharan Africa, Mike Morris and David Kaplan of the University of Cape Town, along with Open University's Raphael Kaplinsky, provide the most up to date information on companies that service or supply the mining sector, and on the developers of patents. According to the book, these companies have benefited from the increased demand and the expansion of projects by South African-based mining companies, particularly with regard to expansion into sub-Saharan Africa. One such company is Gauteng based multidisciplinary mining consultancy Paradigm Project Management (PPM). The company was founded in 2006 and in a short space of time has built up a substantial client base and has delivered on an impressive array of projects. "PPM operates in the sub-Saharan mining industry and this has seen major changes in the last nine months," says Director Jeremy Clarke. "The current state of the industry varies from country to country. South Africa, for instance, is seeing a contraction of the industry due


Secequip: Trustworthy & Reliable South Africa's notoriously high crime rate is recognised across the world and it presents huge opportunities for firms like Secequip. Writer Ian Armitage Project manager Donovan Smith From April 2011 to March 2012 there were 15,609 murders in South Africa, as well as 101,203 cases of aggravated robbery. According to the country's latest victims of crime survey 57 percent of respondents felt that housebreaking/burglary was the crime most feared in their area of residence. This has fuelled a boom in the country's private security industry – the largest private security industry in the world with nearly 9,000 registered companies. "There's certainly opportunity for people like us," says John Rogers, Managing Director of Secequip, and expert in the South African security industry. "Secequip is an exclusive importer and distributor of leading security products, including award winning Pyronix and Texecom alarm panels. In addition to Secequip's extensive intrusion range, the Group also supply CCTV equipment, video surveillance, motion detectors, perimeter detection and heat and smoke detectors." The firm's headquarters are based in Johannesburg and it has a national network of 12 branches across South Africa. "In South Africa crime is a fact of life – and, in my view, homeowners need to make provision for the installation of security systems that will offer protection when they are most in need," says Rogers. "Modern, state-of-the-art security systems, such as the ones Secequip provide, focus on providing reliable security, while at the same time placing an emphasis on being user-friendly, and providing a range of additional

Cardno BEC

Into Africa: Cardno seeks expansion Africa is undergoing a period of unprecedented economic growth and this represents huge opportunity says Bruce Johnson, Area Manager/ Manager New Projects, Cardno BEC. Writer Ian Armitage Project manager James Mitchell Africa is undergoing a period of unprecedented economic growth and is increasingly catching the attention of foreign investors, who have contributed to a rapid increase in capital expenditure. In fact, it's nothing new - foreign direct investment in Africa has been on the rise since the early 2000s, increasing fivefold in 2000-2010. It is the real deal and the continent's economic outlook for 2013 and 2014 is promising, confirming its healthy resilience to internal and external shocks and its role as a growth pole in an ailing global economy. Africa's economy is projected to grow by 4.8 percent in 2013 and accelerate further to 5.3 percent in 2014. "Now is the time for Africa," says Bruce Johnson, Area Manager/ Manager New Projects, Cardno BEC, the head of project development, service and business development within the Cardno BEC engineering team. "We agree that Africa's potential is huge; there are fantastic opportunities in Africa. Its large reserves of undeveloped mineral resources are in demand and in that there is opportunity." Cardno BEC is part of Brisbane based environmental and engineering consulting services company Cardno Limited. Cardno, with its large project history in Africa, strong infrastructure capabilities, and prior experience working with government policy makers around the world, is uniquely positioned to provide the services to help Africa fulfil its potential, says Johnson.


First past the post As Zimbabwe postal company Zimpost continues to evolve we speak to Managing Director Douglas Zimbango about a $5 million upgrading project aimed at modernising its business methods. Writer Ian Armitage Project manager Eleanor Watson Things change. It is a fact of life. And with the decline of the letter – with people opting for faster means of communication like cell phones and the internet – Zimbabwe's postal company Zimpost has had to evolve. The letter has never been less popular and the number being posted continues to fall. Zimpost has responded. "We have experienced an 85 percent decline in mail volumes. The reduction in postal output and the advent of quicker online methods of communication have forced us to move into new revenue streams," Zimpost Managing Director Douglas Zimbango says. "The postal service has suffered from electronic substitution. Today mobile devices provide SMS and social media services so people have shifted away from letters. Fewer people are writing them, send bills or even pay bills via postal mail." According to Zimbango the decline started in 2003. Back then Zimpost handled 100 million pieces of mail. In 2004 it was half that. Today it has dropped down to around 15 million pieces of mail. Cutting costs and surviving have had to become a priority for Zimpost, along with changing the way it does business. "It is not just a case of saying the letter is dead and us shutting up shop - our postal service plays a pivotal role in the country in

DTC Botswana

A cut above the rest In 2011 De Beers and the Botswana government signed a ten-year agreement to move the London DTC to Botswana. Writer Ian Armitage Project manager Debbie Clark Botswana has experienced a serious resurgence of mining activity, with more discoveries seemingly every month. Speaking with me in 2012, Charles Siwawa, CEO of the Botswana Chamber of Mines, said the minerals sector of the country was flourishing and that "exploration for a wide variety of minerals is active and several new minerals projects were launched during last year." Botswana, he said, is a country "getting back to its feet" following the disastrous effects of the 2008 global economic meltdown. "The downturn in the global economy commencing 2008 has had serious repercussions on the mining sector in Botswana," Siwawa explained. "The industry went into a lull with some companies closing down whilst others retrenched staff all in an effort to reduce costs and weather the storm. I think since 2010 however the economic landscape has been changing, picking up, to the extent that in July 2011 we had the highest world record sales of diamonds from Botswana. That has tailed off slightly in terms of production and we are not yet back to the pre-2008 crisis levels but we are certainly producing diamonds and the economy is picking up." Diamonds are of course a girl's best friend; they're Botswana's too. And in August last year, De Beers began rough stone sorting in the country, a first step in its transfer from London to Gaborone. Rough

Hutz Medical

African health solutions The Hutz brand has become synonymous with high quality hospital equipment and is aiming to take advantage of growth opportunities at home in South Africa and across the African continent. Writer Ian Armitage Project manager Eddie Clinton Hutz Medical specialises in the manufacture of high-tech medical service supply systems, commonly known as Bedhead Trunking, Ceiling Mounted Pendants, that falls under the fixed capital equipment requirements in the construction and refurbishment of all Hospitals. With over 40 years of experience, Hutz offers "specialised solutions to suit customer requirements", says Julian Hutz, the company's Sales and Marketing Director. "Our products are known for their innovative, modern and aesthetic designs which are underpinned by practical technology; therefore they are dependable and durable," he explains. "The Hutz range of hospital equipment has been developed in consultation with healthcare professionals. This enabled us to create a range of user-friendly equipment, tailored to the care giver. "Our products play an important role in the design of new medical facilities and the upgrade of existing ones, helping hospital staff to deliver high standards of care. We understand the needs of the industry and this is reflected in the equipment we produce." The Hutz range of products includes various medical services supply units, operating theatre ceiling pendants, technical panels/walls, high care and intensive care ceiling pendants, medical lighting, as well as x-ray viewing screens and attachments. According to Mr Hutz, this is "an exciting time" to be involved in the medical industry. "There are plenty of opportunities for companies like us,"

Swakop Uranium

World's third largest uranium deposit Swakop Uranium has started developing the $2.5 billion Husab mine near Swakopmund, the third-largest known primary uranium deposit on the planet. Writer Ian Armitage Project manager Debbie Clark Emerging Namibia based miner Swakop Uranium's Husab mine has the potential to transform the nation. It will create thousands of jobs, increase export earnings and taxes and will elevate Namibia past Niger, Australia and Canada to the second rung on the world ladder of uranium producers. The project is ambitious and daring. It'll see the creation of the world's third-largest uranium mine, with first production in the third quarter of 2015. It will reach 15 million pounds per annum of nameplate production by 2017. "The project officially kicked off on 18 April but we actually broke ground in October last year," says Grant Marais, Swakop Uranium's Director of Communication and Stakeholder Involvement. "Several contracts have been awarded, bulk earthworks have commenced, construction on the temporary road to the Husab mine is well under way, Nampower has approved guaranteed power supply for the mine and the first water from the temporary pipeline was delivered from the reservoir near Rossing into a newly built pond on the Husab mine." The project's 8km uranium mineralisation has been confirmed as the highest-grade granite-hosted uranium deposit in Namibia and one of the world's most significant discoveries in decades. "Swakop Uranium was established in 2006 to explore, evaluate, develop and produce uranium oxide as a source of fuel for low cost, environmentally-friendly, nuclear power," says Marais. "Husab will be

Sundry Foods Limited

What a catch Nigeria's Sundry Foods is targeting growth in the quick service industry through its restaurant brand Kilimanjaro and recently launched seafood chain Coral Blue Seafood Restaurant. Writer Ian Armitage Project manager Eleanor Watson Ask any fund manager, investor or business development direct and they'll all say the same thing – this is the time to invest in Africa. The continent is regularly touted as the ultimate investment destination and it's easy to see why it is so attractive. Over the past decade Africa has been the second-fastest growing economy in the world according to the World Bank, with GDP increasing an average of five percent a year. Oil-rich Nigeria ticks all the right boxes so far as investors are concerned and, as its middle class grows along with the appetite for foreign brands, more foreign restaurants and lifestyle companies are entering the country. Locally-owned and operated Port Harcourt based Sundry Foods Limited (SFL) is taking advantage of the obvious opportunity, says Managing Director Ebele Enunwa. "We are building new restaurants mainly in different cities around the country," he explains. "We want to offer good wholesome African food." SFL is an integrated food services company founded by young and enterprising Nigerian professionals from diverse backgrounds within and outside the food industry who saw a gap in the provision of quality food services in the retail, commercial and industrial sectors and the urgent need to fill it. SFL has many strings to its bow. It is an integrated food services company. "We provide a full range

Africa Outlook Issue 3

VIEW THE Africa Outlook Issue 3 BROCHURE

KFC Sub-Saharan Africa

Unlocking Africa: Inside KFC As the KFC brand continues to expand further across Africa, Africa Outlook talks to Bruce Layzell, KFC general manager for new African markets. Writer Ian Armitage Project manager Eleanor Watson With the latest McKinsey Report suggesting consumer-facing industries in Africa are expected to grow by more than $400 billion by 2020 many businesses are taking the first steps towards establishing themselves on the continent or, if already in Africa, to build sustainable business models and expand their footprints. KFC is one such business and its African expansion has been well documented – we've featured it a few times over the last couple of years (within this magazine and in our previous incarnation as South Africa Magazine). The global fast food giant is not new to Africa. Its South African business has been open for more than 40 years. "Africa is undoubtedly one of the fastest growing regions globally and KFC is fully committed to harnessing this opportunity and building a sustainable business on the continent," says Bruce Layzell, KFC General Manager New African Markets. "African consumers are coming to expect world class offerings and why shouldn't they?" One of the main drivers of Africa's growth is the increasing pace of urbanisation and consumerisation. By the end of 2012, KFC had 63 new African restaurants, with operations in Angola, Nigeria, Namibia, Botswana, Mozambique, Lesotho, Malawi, Swaziland, Ghana, Kenya and Zambia. The 63 figure excludes South Africa, Egypt, Morocco and Mauritius, which if included, would mean there are almost900 KFC restaurants on the continent.

National Real Estate

Keeping it in the family National Real Estate in Bloemfontein currently manages over 12,000 residential properties in both the sectional title and property rental portfolios. It also manages more than 1,200 commercial properties and offers insurance services. Writer Ian Armitage Project manager James Mitchell Some of the world's most instantly recognisable businesses are familyowned. News Corp, Benneton, L'Oréal, Playboy, Gucci, Carnival Cruise Lines, and car giant Ford Motor Co, are just a few. Globally, family businesses - defined loosely as a business in which a dominant family owns 51 percent of an enterprise - account for around 70-80 percent of all businesses and are acknowledged as the strategic backbone of most economies and a key source of growth. Nowhere is this truer than in Africa - think of the likes of the Ackermans in South Africa, the Kenyattas in East Africa, and the Dangotes in West Africa. All of these have helped define the economies and the business environments of the regions in which they operate. The du Toit family's business is doing the same. National Real Estate was established in 1933 in Bloemfontein. Over the years it has had some name and ownership changes and today it is run by the du Toits, who took over in 2003. The company, which specialises in property management and related industries, is a market leader in the property industry in the Bloemfontein area. "It is our mission to be totally committed in serving our customers in the most effective means possible," says CEO Marius du Toit. "Family businesses


Engineering success Africa Outlook talks to Derek Weston, the General Manager of Sandton-based civil engineering contractor Eigenbau. Writer Ian Armitage Project manager Stuart Shirra Founded by Eddie Ross in 1981, civil engineering contractor Eigenbau is now almost unrecognisable from the firm that initially focused on concrete construction. In the years since it has diversified and now has many more strings to its bow. "We've evolved," says Eigenbau General Manager Derek Weston. "Our business now encompasses almost every aspect of civil engineering and building and we have our own Mechanical Engineering Division, which specialises in equipment for water and sewage treatment plants and pumping stations." That division was formed in 1997, he says, born out of the acquisition of Sewapurco. "It saw us broaden our activities and means that we've had a reasonably good last few years, despite the downturn. We were fortunate that we had some long term projects/contracts that took two or three years to complete during that period. Obviously there was a height of activity in getting everything ready for the 2010 FIFA Soccer World Cup and there was a lot of work building highways, stadiums and things like that. When that came to an end it left a tremendous vacuum. The government keeps reminding us that they have plans for infrastructure development but we are not seeing a lot of tenders coming out at this point." Several water projects across South Africa have contributed to Eigenbau's recent success. "Our Mechanical Engineering Division has been quite active on the water side. Certainly over the

Murray & Dickson Construction : 30 Not Out

In its 30 years of existence, Murray & Dickson Construction has undertaken building projects from shopping centres to university buildings.

Autohaus Windhoek : Wheeling Ahead

Volkswagen, Germany’s biggest carmaker, has been leaving rivals in the dust. Africa Outlook talks to JP Pretorius, Dealer Principal and Director of Autohaus Windhoek, the only distributor of the whole Volkswagen range in Namibia.

ADB Airfield Solutions

Taking to the skies As Africa continues to grow, so do its airports. ADB Airfield Solutions Southern Africa's CEO Manfred Oettl tells us more. Writer Ian Armitage Project manager Nick Norris The African continent has ambitious growth and expansion plans. A key part of that is creating new airports, expanding current airports and professionalising the existing ones. In a world where airport safety remains a priority and runway incursion accidents are on the rise, technologies such as airfield lighting systems, precision approach and landing systems, surface movement radars, and visual docking guidance systems are imperative for ensuring airport safety. This is where ADB Airfield Solutions comes in, playing a major role through its comprehensive and internationally certified product range of safety solutions and management systems. The company's integrated solutions such as Advanced Surface Movement Guidance & Control Systems (A-SMGCS) include products and services to ensure safety from landing to take off, covering LED runway and taxiway lights, guidance signs and microprocessor controlled constant current regulators. "We have an innovative portfolio ranging from design and development, installation, maintenance and consulting to training," says ADB's Southern African CEO Manfred Oettl. "We're well aware of the potential in Africa for our business and our solutions support airport operations and enable them improve their performance and reliability." Worldwide, ADB's solutions have been successfully integrated across 2,000 civil and military airports and heliports. The company was incorporated in 2008 and is based in Johannesburg. ADB Airfield Solutions (PTY) Ltd operates as a subsidiary of ADB BVBA. "There will be a lot

Feltex Automotive

King of the trim Africa Outlook profiles Feltex Automotive a leading supplier of a wide range of quality automotive acoustic, comfort and trim components. Writer Ian Armitage Project manager Tom Lloyd Is this a good time to be involved in South Africa's car industry? Well yes: South African car sales in Q1 increased 4.1 percent from 156,673 vehicles to 163,239 vehicles and according to the National Association of Automobile Manufacturers of South Africa (Naamsa) the motor industry sailed a steady course during the first quarter of this year. Naamsa director Nico Vermeulen said production at South African plants was "well on track", and that "if production continues at the levels seen in the first four months of the year," production growth could come in "as high as 25 percent". However he said Naamsa was "remaining conservative," and maintaining a prediction of 18 percent (or about 640,000 units) production growth for the year. It's good news but according to Econometrix chief economist Dr Azar Jammine we should expect a "sharp slowdown in domestic sales growth" later this year. Whatever happens, increasing sales is good news for manufacturers like Feltex Automotive, a leading South African supplier of quality automotive acoustic, comfort and trim components. Feltex Automotive is a Division of KAP Manufacturing Proprietary Limited which is a 100 percent subsidiary of KAP International Holdings Limited. The Automotive Division comprises seven business units – Feltex Automotive Trim, Feltex Fehrer, Feltex Foam, Caravelle, Feltex Unifrax, Futuris Feltex and Autoneum Feltext - that supply products directly and indirectly to the South

Ingram Micro Mobility

Brightpoint rebranded as Ingram Micro Mobility Earlier this year BrightPoint was rebranded Ingram Micro Mobility. Africa Outlook learns more. Writer Ian Armitage Project manager Donovan Smith In 2012 IT giant Ingram Micro, the world's largest wholesale technology distributor and a global leader in IT supply-chain, mobile device lifecycle services and logistics solutions, acquired BrightPoint for a cool $840 million, including $190 million in debt as part of its strategy to drive convergence across IT and Mobility markets. Ingram Micro's acquisition of BrightPoint marked an important milestone for both companies, but more importantly it offers tangible benefits to its customers and vendors who now have access to the broadest portfolio of mobility and converged technology products and the most comprehensive suite of supply chain solutions for mobile devices. Ingram Micro Mobility has positioned itself at the centre of the flow of products and commerce within the mobility industry, which will help them anticipate demand and create connections between manufacturers, retailers and carriers, while helping to enable the convergence of IT and mobility. "We executed the integration against a clear cut plan which has impacted the business more positively than we ever anticipated. The Ingram Micro brand and reputation has been well received by our vendors and our customers," says Bruce Cockburn, Regional Managing Director, Africa (Mobility & IT). As a vital link in the technology value chain, Ingram Micro creates sales and profitability opportunities for vendors and resellers through unique marketing programs, outsourced logistics and mobile solutions, technical support, financial services and product aggregation and distribution. The

Olam Mozambique

Olam to build Mozambique's first roller cotton gin Olam International, a leading global integrated supply chain manager and processor of agricultural products and food ingredients, has started construction of its first state- of-the-art roller cotton gin in Mozambique. Writer Ian Armitage Project manager Eleanor Watson This is an exciting time for Olam Moçambique, which plans to make large investments over the next four years. Indeed, last month, Olam International, of which Olam Moçambique is a subsidiary, started construction of its first state-of-theart roller cotton gin in the country. The $2 million development signifies Olam's "continued progress in increasing local cotton production and strengthens supply chain efficiencies by investing in processing operations that are close to smallholder cotton farmers," it said in a release. " Since Olam started sourcing cotton in Mozambique in 2008 we have worked closely with farmers, local government and independent partners to increase yields and improve production methods," Indranil Majumdar, Business Head Natural Fibres, Olam Moçambique, said at an official ceremony at the site in Beira, Sofala Province. "To date, our volumes have risen fourfold and we are now able to progress existing plans to develop our third cotton gin in Mozambique. The roller gin will be the first of its kind here and will complement our saw gins to provide the additional capacity required to support future growth. This is an important milestone for Olam Moçambique and will contribute to the local economy through job creation and market growth." Once completed, the new facility - equipped with high speed rollers and modern

Eaton Towers

Towering ahead Africa Outlook talks to Alan Harper, the Co-founder and CEO of African telecoms infrastructure firm Eaton Towers, which owns and manages telecom infrastructure across the continent and has plans to build 250 transmitter towers this year. Writer Ian Armitage Project manager Ben Weaver African telecoms infrastructure firm Eaton Towers is continuing to expand its mobile operations and is one of a number of specialist players to launch services in Africa in recent years. It plans to build another 250 transmitter towers in 2013, increasing its African portfolio by a sixth. What's that down to? Growing internet use. "We will build about 100 towers in Uganda, 100 in South Africa and 50 in Ghana," says Alan Harper, Eaton Towers' Co-founder and CEO. Customers include Airtel, Vodafone, South Africa's MTN and Orange. "The internet boom is one of the key drivers - more people are getting online as smartphone prices fall and telecom operators improve their networks. Mobile operators are building new base stations for two reasons – one is obviously coverage, and there is still some coverage expansion going on, but increasingly it is for adding capacity to the networks." A lack of extensive fixed-line infrastructure in most African countries means mobile networks provide the main means for people to access the internet, he adds. "That's right. With fixed-line penetration being so low in so many countries most of the data usage is on the mobile networks and therefore whether it is 3G, or now we are seeing some LT E development in some markets,