African Business Coverage Issue 9

1

ISSUE

9 African Business Coverage

Featuring Hyundai SAACSAJoburg Property Company

African Business Coverage Issue 9

Imagine one independent energy operation with expertise in sourcing, storing, blending, packaging and distributing energy products. Over the past 25 years, our success across sub-Saharan Africa has led to the creation of a number of complementary products and services. Integrating these enables us to offer the benefi ts of one, smooth, effi cient and highly reliable operation. Imagine Oryx Energies—bringing you the fuels, lubricants and LPG that drive your success.

www.oryxenergies.com Your energy partner of choice in Africa.

OKM Media Ltd, 66 Prince of Wales Road, Norwich NR1 1LT

Publisher Oliver MOy [email protected] SaM WOOd [email protected]

heaD of research abi abagun [email protected]

INTRODUCTIONWelcome to Issue 9 of African Business Coverage.

We are pleased to feature one of the motor industry’s most respected brands in Hyundai. We focus on Hyundai South Africa, the company’s distributor which also has branches in Namibia and Botswana.Since 2000, Hyundai SA has worked tirelessly to ensure that every aspect of the motor ownership experience is in place; from the purchase, to servicing and parts availability. Backed by a rich history and heritage and with its wide range of products, South Africans have once again become endeared by the Hyundai brand and its varying models.Elsewhere, we take a look at Kenya National Water & Conservation and Airports Company South Africa, which owns and operates nine major South African airports, including international airports in Durban, Cape Town and Johannesburg.Staying in Jo’burg, we also feature the City of Joburg Property Company (JPC), which manages and develops the City’s property portfolio, promoting both social and commercial opportunities.

Enjoy the issue

Oliver Moy Publisher

African Business Coverage

Imagine one independent energy operation with expertise in sourcing, storing, blending, packaging and distributing energy products. Over the past 25 years, our success across sub-Saharan Africa has led to the creation of a number of complementary products and services. Integrating these enables us to offer the benefi ts of one, smooth, effi cient and highly reliable operation. Imagine Oryx Energies—bringing you the fuels, lubricants and LPG that drive your success.

www.oryxenergies.com Your energy partner of choice in Africa.

ContentsIssue 98 Industry News

Company Reports

20 Airports Company South Africa (Acsa)

26 Hyundai South Africa

32 Kenya National Water Conservation & Pipeline Corporation

38 Joburg Property Company

44 Events


Industry news

7

Industry news


INDUSTRY NEWS

The umbilical will connect an existing Subsea Distribution Unit (SDU) to a new well through the use of two umbilical termination units (UTA). JDR will manufacture and load-out the umbilical on a 9.2m installation reel from their deep-water, quayside facility in Hartlepool, UK.The project is a first for Nigerian Content as it also provides for the training of Nigerian nationals in the integration, testing, installation and commissioning of the umbilical. This training will take place at JDR’s facilities in Hartlepool and will see selected candidates gain valuable knowledge in key activities related to the final stages of the project before load-out and beyond.“We are very happy to be a part of this deep-water project,” says Pat Herbert, Executive Chairman and

CEO of JDR. “This is a testament to our umbilical engineering and manufacture strength and we hope this project is one of many in West Africa.”Royal Niger released a statement expressing its pleasure at the commencement of the contract. “We see this contract as the first step in a bold move to domicile umbilical technology and services in Nigeria through the effective collaboration with JDR to deliver the umbilical product and technology transfer to the Nigerian market.”Abo is Nigeria’s first deep water oil field located in the south eastern part of Oil Mining Lease (OML) 125, about 34 miles (55 km) off the coast in water depths up to 780 meters [2461 feet].

JDR WINS STEEL UMBILICAL ORDER FOR WEST AFRICAN DEEP-WATER FIELDRoyal Niger Emerging Technologies, a leading Nigerian oil & gas service

company, has awarded JDR a fast track contract supporting the West African Abo project for the manufacture of a 1.55 km hybrid of steel

tube and thermoplastic umbilical. The umbilical, designed to include a combination of hydraulic control and chemical hoses, low voltage signal cables and a central bundle of steel tube chemical supply lines, is set to be delivered to the Abo field within the first quarter of 2015.

9

In a statement, the power utility said it had embarked on the Hwange power generation expansion project in addition to the Batoka power generation project and the Kariba south power expansion project.Kariba South expansion stands at a total cost of US$ 533 million, which would include all the associated developments.The company said in all its expansion work it had engaged Sinohydro Corporation Company of China.ZPC said it had also opened up the sector to Independent Power Producers and had created the Zimbabwe Electricity Regulatory Authority ZERA to regulate the industry.According to the company a new hydro power station is on the cards at the Batoka gorge downstream of the Victoria Falls which will produce about 800 megawatts of power.Zimbabweans have been for years subjected to power outages which had cripple both industrial expansion and capacity.

Domestic power users have been subjected to power load shedding with some areas going for days without power.Energy and Power Development Minister, Dzikamai Mavhaire, conceded the Southern African country will not have enough power until 2018.“I do not want to lie to the nation. We do not have the capacity to generate enough power for the whole country at the moment but we have put in place measures to increase our generation capacity,” said Mavhaire.Zimbabwe imports some of its power from Mozambique, Zambia and the Democratic Republic of Congo.

ZIMBABWE ENGAGES PRIVATE PLAYERS TO EASE POWER OUTAGES

T he Zimbabwe Power Company said it had embarked on least cost power generation expansion projects to boost the country’s electricity.


INDUSTRY NEWS

With reference to Vestas Wind Systems A/S’ company announcement No. 45/2014 of 11 December 2014, Vestas has received a firm and unconditional order in Kenya for 365 V52-850 kW turbines corresponding to 310 MW. The order was placed by Lake Turkana Wind Power Ltd. and is expected to be Africa’s largest wind power plant when complete. The wind power plant will save Kenya approximately EUR 150m in fuel imports every year.The order comprises supply, installation, and commissioning of the wind turbines as well as a 15-year Active Output Management (AOM 4000) service agreement. The logistically complex project is expected to be complete in 2017.“We are very pleased to continue this great journey with Vestas as

we progress toward our aim of reducing Kenya’s need for hydro and expensive fossil fuel-based power generation. We want to ensure that Kenya has access to low and consistent power prices, and with the Lake Turkana Wind Power Project, we can do that,” says Mugo Kibati, Chairman of Lake Turkana Wind Power Ltd.“Lake Turkana Wind Power Ltd. has made a historic commitment to a clean energy future for Kenya, and we are very proud to play an active role in bringing to life Africa’s largest wind power plant,” says Christoph Vogel, President of Vestas Central Europe. “Eastern and southern Africa are key markets for Vestas, and the Lake Turkana project will establish Kenya among the continent’s wind energy leaders.”

VESTAS RECEIVES ORDER FOR LARGEST WIND POWER PLANT IN AFRICA

V estas has received an order for 365 V52-850 kW turbines for the 310 MW Lake Turkana Wind Power project in Kenya. The order is the largest in Vestas’ history in terms of number of wind turbines

in a single project.

11

The plants will be built in the steam-filled Olkaria field, state-owned KenGen said on Tuesday.Endowed with vast geothermal energy resources in the Rift Valley region, the east African nation wants to expand its generation capacity by 5,000 MW by 2017 from about 1,664 MW now, aiming to lower tariffs and cut the cost of doing business.By 2030, Kenya estimates it will need some 15,000 MW of extra capacity, with much coming from geothermal and other renewables which will be both cheaper than widely-used diesel generators and more reliable than its hydropower dams.KenGen said one of the projects will involve the construction of a 140 MW Olkaria V power plant and another 70 MW plant in Olkaria I unit 6.The company, which is 70 percent state-owned, said it was in talks with development institutions to borrow money for the 140 MW plant, which it planned to build first.

Kenya is the first African country to tap geothermal power. It has potential to produce 7,000 MW and is targeting production of at least 5,000 MW of geothermal power by 2030.Development of cheaper geothermal energy also means the country has to rely less on thermal power that is prone to the vagaries of international prices.In Kenya, an extra fuel charge or premium is added to normal power rates depending on the amount of diesel generation used and on global fuel costs.

KENGEN SEEKS BIDS FOR DESIGN AND CONSTRUCTION OF 210 MW GEOTHERMAL POWER PROJECTS

Kenya Electricity Generating Co (KenGen) is seeking bids for the design and construction of two geothermal power plants with capacity totalling 210 megawatts (MW).


INDUSTRY NEWS

ETHIOPIA TO SPEND $64.5 ON 3 NEW AIRPORTS

13

A contract of agreement was signed Friday last week between EAE, Yotek Construction, Akir Construction and the Ethiopian Road Construction Corporation for the construction of airports in Hawassa, Robe Goba and Shire.Civil works for the project have already started with the construction of runways in the first phase of the project. The construction of the terminals of Hawassa and Robe Goba have also begun, with Shire’s terminal being constructed in 2015 too. The airports are to be ready within a period of two and a half years.YOTEK will be charged with the construction of the Hawassa Airport at an initial cost of US$ 23m. The Robe Goba airport will be constructed by Akir Construction at a cost of US$25m while Shire Airport will be constructed by Ethiopian Road Construction Corporation at a cost of US$ 21m.The three airports will contribute significantly to the economy of the regions since they are well known for tourism and business. Ethiopia has also planned to undertake other construction projects and has issued a sovereign bond worth US$1bn in order to finance the construction of the Grand Renaissance Dam – an undergoing project.

ETHIOPIA TO SPEND $64.5 ON 3 NEW AIRPORTS

T he Ethiopian Airports Enterprise (EAE) is planning to construct three new airports in Ethiopia. The project is expected to cost

US$ 64.5m.


Sources indicate that talks have been held between the company’s Ghana office and the Volta River Authority (VRA). Since 2001 when the Nigerian company first lifted crude oil for the Tema Oil Refinery, the company had remained fully operational in Ghana. The company had also built the largest thermal plant in Nigeria.“We just completed the plant in Nigeria. As it has been our trademark, we want to complete all the learning process before we replicate it here in Ghana,” a source said.Indeed, the company prides itself on replicating successful Nigerian models in other countries. Through its subsidiary, it owns a 70 percent

stake in Lagos’s Egbin thermal power plant with current generating capacity of about 1,320MW and planned expansion to 2,640MW. This is one such model the company aims to replicate in Ghana in the near future. The Egbin plant is Nigeria’s largest thermal power distributor.A force to reckon with in the Nigerian power sector, the group also holds a 60 percent interest in the Ikeja Electricity Distribution Company, Nigeria’s largest power distributor, which delivers power to over 600,000 homes; a 70 percent stake in First Independent Power Ltd located in Rivers State, Nigeria, which comprises four power plants with total capacity of 721MW.

SAHARA GROUP TO BUILD THERMAL POWER PLANT IN GHANAT he Sahara Group, an energy conglomerate based primarily in Nigeria,

has disclosed plans to build a 2,000 megawatt (MW) thermal plant in neighbouring West African country, Ghana, in order to improve

the generation capacity of the country.

INDUSTRY NEWS

15

Based on this controlling interests, the Sahara Group is the single largest power producer in Africa’s largest economy, and has a solid track record justifying it’s spread to other geographies. It is expected that the Group would aim to also become the single largest producer of power in Ghana by leveraging its expertise and successes from Nigeria. In Ghana, the group has evolved from oil lifting to building retail outlets in strategic Ghanaian cities. It also runs the largest private sector build storage facility at Tema.Ghana represents a number of pressing power challenges, but these may be opportunities for the Sahara

group. Generally, power generation deficits fluctuate between 150MW and 250MW, and worsens when the plants breakdown or are shut down for routine maintenance.The country’s heavy reliance on hydroelectric energy means that, just like in Nigeria, when water levels are low, power generation will be rather disappointing. Because of this, concerted efforts have been launched by the VRA and General Electric (GE) to develop projects that could add as much as 1,420MW of power to the national grid. GE expects to add 360 MW to the national grid by September, 2016.


INDUSTRY NEWS

The creation of a new roaming bundle will enable subscribers to enjoy reduced roaming charges in 21 countries located in North and Central Africa, Europe and New Zealand. In addition, subscribers travelling to Rwanda and the United Arab Emirates shall enjoy reduced rates for calls made to Kenya.“We always place the needs of our customers at the forefront of our business. We have aggressively lobbied countries and our partners to ensure our subscribers can enjoy the same reliable communication services they have come to know in Kenya when they travel at significantly reduced rates,” said Bob Collymore, CEO Safaricom.Following the signing of a new agreement with Vodafone affiliates, for just Sh200, subscribers can access up to 10 minutes of voice services, 10 SMS, and 10MBs of data in 21 countries, providing subscribers with a simple solution for their roaming needs.Safaricom has secured the roaming agreements through its affiliates in

Albania, Czech Republic, Germany, Greece, Hungary, Ireland, Italy, Malta, New Zealand, Portugal, Romania, Spain, Netherlands, Turkey, United Kingdom, Democratic Republic of Congo, Ghana, Lesotho, and Mozambique among other countries.In practice, the development means that a subscriber who travels to Egypt will now pay just Sh200 for ten minutes of conversation, down from the previous charges of over Sh900.For subscribers who are travelling to the United Arab Emirates and roaming on Etisalat, calling rates have come down by 85%, while data customers will now pay Sh100 per MB, down from the Sh1,020 that was charged previously.The news follows Safaricom’s recent announcement of reduction of roaming charges in Rwanda, where costs came down by up to 60%. The company is also pursuing targeted agreements with other countries in the East African bloc such as Uganda and Tanzania.

SAFARICOM SLASHES ROAMING RATES IN AFRICA, EUROPE & NEW ZEALAND

Following successful negotiations with its global network of partners and regional governments, Safaricom has announced significant reductions in roaming rates for its subscribers.

17

The Company‘s Oyo Field drilling and completion operations are now being conducted by the Transocean (NYSE: RIG) Sedco Express semi-submersible drilling rig, which arrived on location in December, and production is still expected to be online by the end of Q1 2015.You can view more information on CAMAC Energy, in Issue 6 of African Business Coverage.

CAMAC ENERGY TERMINATES THE NORTHERN OFFSHORE ENERGY SEARCHER DRILLING RIG CONTRACT

CAMAC Energy, an independent oil and gas exploration and production company focused on energy resources in sub-Saharan Africa has announced it has terminated its contract with Northern Offshore

International Drilling Company Ltd. (“Northern”) for the drillship Energy Searcher. The Company notified Northern on January 7, 2015 that it elected to terminate the contract with immediate effect for Northern’s repudiatory breach of contract and other material breaches of the drilling contract by Northern. These breaches have caused significant damages and loss, including delay damages and wasted spread costs to the Company. CAMAC is considering all legal options to enforce its rights under the contract.


INDUSTRY NEWS

Ethiopia’s economy raises Heineken’s hopes for beer market growth.Ethiopia’s average annual beer consumption of some five litres per capita is about half the average level for sub-Saharan Africa, excluding South Africa, offering scope for expansion among the population.Heineken’s African and Middle East regional president Siep Hiemstra said in an interview on Monday that Ethiopians were used to fermented drinks and also grew barley, used in beer making.“It’s a country, where as a brewer, you believe you should be there ... One can expect that there will be rapid expansion of the brewing industry,” he said.Ethiopia’s economy is expanding at about 9 percent per year, sturdy growth that led to its debut one billion US dollars Eurobond being oversubscribed last month.The world’s major brewers have turned to emerging markets such as Africa for growth because consumer spending in Europe is sluggish and the United States offers only limited expansion opportunities.Heineken is the market leader in Europe, responsible for half of group revenue

and about a third of its operating profit in the first half of 2014. But the company has significant exposure to Africa, Latin America and Asia.Heineken has bought numerous plants in Africa and built two, one in Nigeria in 2000 and another in South Africa in 2008. It has been gradually ramping up its new plant in Ethiopia since July. The 110 million euro ($130 million) brewery, with a capacity of 1.5 million hectolitres, is the largest in the country and located near the capital Addis Ababa.The new facility adds to the Bedele and Harar breweries, each some 500 kilometres from Addis Ababa, that Heineken bought from the state for a combined 163 million US dollars in 2011.Hiemstra said the new brewery would initially focus on local brands Hamar and Bedele, but could start producing the premium Heineken brand next year.Heineken is the number two player in Ethiopia, where its competitors include Diageo, which acquired Meta Abo Brewing in 2012 for 225 million US dollars and market leader BGI, a long-standing player bought by French drinks company Castel in 1990.

ETHIOPIA'S RISING ECONOMY RAISES HEINEKEN'S HOPES FOR GROWTH IN BEER MARKET

H eineken is betting on Ethiopia’s rising incomes to fuel rapid expansion of the beer market in Africa’s second most populous country.

19

The city has come up with a US $0.78bn housing development programme that will see construction of 122 000 homes in 12 months. 37000 of these houses will be built by the South African Government, 45000 by the City management, while the private sector investors will construct 40000 houses. In order to cater for the housing construction, the city has planned to sell assets, including property and unused land to raise money.The city, which has also been facing power shortages, is planning on reducing this problem by reviving Rooiwal and Pretoria west coal fired power stations. These power generation plants will help curb demand as a result of the planned housing developments.

According to the Mayor of Tshwane Kgosientso Ramokgopa, the two power generation plants are only operating at 15 percent. Proper management will be appointed for the two plants by November, to ensure that surplus power is fed into the National electricity grid.In addition to this, the council, which will be looking into ways of reducing the demand for electricity and increase regional production, has approved construction of a new building worth US $0.11bn for its meetings.

TSHWANE PLANNING $0.78BN INVESTMENT

T he city of Tshwane is working towards construction of new houses and resurrecting its power generation capacity to meet increasing demand.


21

AIRPORTS COMPANY

SOUTH AFRICA (ACSA) Managing the gateways to South

Africa for 21 years

A irports Company South Africa Limited (ACSA) was formed in 1993 as a public company to own and operate the nine

principal South African airports, including the three main international gateways of O.R. Tambo, Cape Town and King Shaka International Airports. ACSA not only provides world class and secure infrastructure for airlines to transport people and goods, it also extends its responsibilities to include the promotion of tourism, the facilitation of economic growth and job creation, and protection of the environment.


ACSA is majority owned by the South African Government and through the Department of Transport, the Company is legally and financially autonomous and operates under commercial law.

RUNNING AIRPORTS LIKE CITIES“A large international airport should be thought of as a living entity,” says ACSA. “Although it is a collection of inanimate objects such as runways, hangars, terminal buildings, car parks, roads and a host of physical structures to support the activities of an airport, in reality it is an organism

that pulses with life, just like a city.” ACSA is acutely aware of the role its airports have to play in South Africa’s continued development. The O.R. Tambo International Airport is the country’s principal airport, with more than 50 percent of South Africa’s total number of air passengers passing through the airport. It is the biggest and busiest airport in Africa. Servicing airlines from all five continents, the airport underwent a major upgrade and expansion in preparation for the 2010 World Cup

ADB Airfield Solutions is a world leader in airfield ground lighting solutions in the ICAO and FAA markets providing advanced, integrated and sustainable solutions for visual guidance.

ADB Airfield Solutions is a world leader in airfield ground lighting solutions in the ICAO and FAA markets providing advanced, integrated and sustainable solutions for visual guidance.

[email protected]

With a worldwide presence, and a 65 year legacy, ADB offers an innovative portfolio and expertise that sets new standards in safety, performance, quality, and customer service. More than 2000 airports in 150 countries have chosen ADB as their preferred partner for airside operations. The ADB South African business model embraces consulting, design, manufacturing, supply, installation, commissioning and maintenance.

ADB Airfield Solutions (Pty) Ltd2nd Floor, 3 Rivonia VillageCnr Mutual Road & Rivonia Boulevard South, 2128 Rivonia, Johannesburg, South AfricaTel: +27 (0) 11 525 9340Fax: +27 (0) 11 525 9348

With a worldwide presence, and a 65 year legacy, ADB offers an innovative portfolio and expertise that sets new standards in safety, performance, quality, and customer service. More than 2000 airports in 150 countries have chosen ADB as their preferred partner for airside operations. The ADB South African business model embraces consulting, design, manufacturing, supply, installation, commissioning and maintenance.

ADB Airfield Solutions (Pty) Ltd 2nd Floor, 3 Rivonia Village Cnr Mutual Road & Rivonia Boulevard South 2128 Rivonia, Johannesburg, South Africa

Tel: +27 (0) 11 525 9340 Fax: +27 (0) 11 525 [email protected] www.adb-air.com

Transform your corporate branding.Your clothes defi ne you.You defi ne your company.Jade corporate Clothing Concepts creates and manufactures high quality corporate clothing.For ladies & men’s corporate wear, work-wear and uniforms.

Contact +27 11 402 [email protected]

www.jadecorporate.co.za

in South Africa which enabled it to handle 28 million passengers a year. Situated in Gauteng, the airport is ideally situated in the heart of South Africa’s commercial and industrial hub and has excellent road infrastructure linking it to Johannesburg, Pretoria and the national road network. The Gautrain rapid rail system links O.R. Tambo airport with Sandton, which was recently awarded the Global AirRail Alliance Award (GARA) for customer service excellence. The awards recognise the best practice in intermodal travel around the world and look for the best services of delivering an enjoyable and stress free journey between air and rail travel.

EMPLOYMENT & REVENUEACSA is proud to be able to significantly contribute to job creation in South Africa which continues to struggle with unemployment. It is estimated that the three major international airports sustainaround 300,000 jobs (direct and indirect) and that planned future developments, as a result of passenger and cargo growth, should result in the creation of some 150,000 new jobs over the next decade.ACSA’s revenue is generated from both aeronautical and non-aeronautical sources. The former

includes government-regulated charges (tariffs) paid by airlines and includes fees for aircraft landing, aircraft parking and a passenger service charge. Non-aeronautical income is derived from multiple sources that include retail sales, concession fees, property leases, parking fees, hotel operations, advertising and revenues from our involvement in international activities.Outside South Africa, ACSA endeavours to identify and participate in select airport management and operating concession opportunities


25

Nonku Ntshona and Associates Quantity Surveyors (NNAQS) is a fi rm

of Quantity Surveyors based in Johannesburg, specialising in the

property development and construction industry. A defi ning factor

is our black woman ownership, a unique infl uence in a largely male-

dominated industry. The company has earned respect in delivering

world-class infrastructure on mandates across Africa.

Founded by Nonku Ntshona in 2007, the success of NNAQS is

entrenched in her intrinsic knowledge and capability, gained from over

a decade of experience on prominent development projects in South

Africa and across the continent. The predominantly female professional

team consists of established specialists in their fi eld of expertise.

They contribute a variety of skill to the company’s extensive range

of competencies.

NNAQS is ideally positioned to impart a greater role for previously

disadvantaged societies, with a particular emphasis on increasing

participation of women in the construction industry.

We offer our services to all construction related and mining

engineering projects. The commercial property component of the

business focuses on retail, offi ces, and industrial, residential and

mixed use developments. We are recognised for our ability to deliver

fully compliant end-to-end solutions, on time and with excellence,

for projects of any scale.

Nonku Ntshona & Associates Quantity SurveyorsEdenburg Terraces Block B 3rd Floor 348 Rivonia Boulevard Rivonia l PO Box 669 Rivonia 2128 t: 011 803 2291 f: 011 234 2078 e: [email protected] w: www.nnaqs.co.za Johannesburg (Head Offi ce) | Bloemfontein | Queenstown | Durban | Associated Offi ces: Zambia

Breaking Boundaries. Delivering Excellence.

Nonku Ntshona and Associates Quantity Surveyors (NNAQS) is a fi rm

of Quantity Surveyors based in Johannesburg, specialising in the

property development and construction industry. A defi ning factor

is our black woman ownership, a unique infl uence in a largely male-

dominated industry. The company has earned respect in delivering

world-class infrastructure on mandates across Africa.

Founded by Nonku Ntshona in 2007, the success of NNAQS is






of competencies.






We offer our services to all construction related and mining

engineering projects. The commercial property component of the

business focuses on retail, offi ces, and industrial, residential and

mixed use developments. We are recognised for our ability to deliver

fully compliant end-to-end solutions, on time and with excellence,

for projects of any scale.

Nonku Ntshona & Associates Quantity Surveyors

Nonku Ntshona (MD)

NNAQS AD_FINAL_210x148.indd 1 2014/07/07 3:54 PM

as part of its overall growth strategy. In February 2006, ACSA and a consortium comprising the Indian company GVK and South African listed company, Bidvest, won a concession to manage Mumbai International Airport (MIAL). ACSA considers MIAL an exciting and valuable investment.Earlier in 2014, ACSA entered a strategic partnership by signing a Memorandum of Understanding with the Ghana Airports Company Limited to provide advisory and

technical services on all airport-related matters.

21 YEAR ANNIVERSARYACSA is celebrating it’s 21st anniversary this year, and helped to build Brazil’s long-awaited new international airport terminal - Terminal 3 – which opened on 11 May 2014, thanks to the extensive involvement of ACSA. The Guarulhos International Airport enjoyed a massive rise in passengers during the 2014 FIFA World Cup.


27

HYUNDAI SOUTH AFRICA

Motor company brings new thinking, new possibilities for Southern Africa

S ince its inception in 2000, Hyundai Automotive South Africa has been committed to becoming the best automotive

brand in South Africa.It was 15 years ago that Associated Motor Holdings, a division of Imperial Holdings, signed a distribution agreement with Hyundai Motor Company, now Hyundai-Kia Automotive Group, the world’s fifth largest car company, in Korea to import and distribute of Hyundai vehicles and parts for Southern Africa.It was a crucial time for the Hyundai brand, owing to the fact that the previous distributors, Hyundai Motor Distributors, had collapsed. Hyundai Automotive SA had the task of restoring the Korean brand’s image and, more importantly, customer’s faith in its motors.


Since then, Hyundai SA has established a network of over 100 dealerships in Southern Africa, which includes Namibia and Botswana. The Hyundai franchise has enjoyed a steady growth in vehicle sales and an enhanced reputation of the brand, led by Managing Director Alex Ross.

COMMITMENT TO CUSTOMERSHyundai SA works tirelessly to ensure that every aspect of the motor ownership experience is in place; from the purchase, to servicing and parts availability. Backed by a rich history and heritage and with its wide range of products, South Africans have once again become endeared by the Hyundai brand and its varying models.

The company continues to expand this model range and facilities ahead of demand. This is to make sure it leads, rather than follows, in the Automotive Industry.“Our mission is clear: To grow our brand, on a reputation built on integrity; recognisable style, reliability and superior build quality,” states Hyundai SA.

NEW THINKING, NEW POSSIBILITIESThe Hyundai tag line perfectly sums up what the company stands for. “New thinking, new possibilities” is a statement that not only relates to their innovative designs and technology but an ongoing philosophy to adhere to in all aspects of their work.

National networkin South Africa andneighbouring states

Contact:+27 (0) 11 875 0000www.sanji.co.za

As one of the longest standing vehicle security companies in SouthAfrica and sole supplier of alarms & immobilisers for their variousmodels, Sanji is proud to be associated with Hyundai during theirperiod of phenomonal growth in the South African vehicle market.

SECUR ING YOUR FUTURE

SanjiAdvert2013.indd 1 2013/09/03 7:30 AM

29

In the first quarter of 2015, Hyundai are expected to release the new i20 hatchback model, an upgraded version of the extremely popular i20.The latest Hyundai model to gain a lot of media interest is the pickup truck concept car dubbed the ‘Santa Cruz’, which combines the strengths of a passenger vehicle, an SUV and a truck.Making its debut at the 2015 North American International Auto Show held in Detroit, the Santa Cruz features a draw-like tailgate extension that allows the load bin bed to be expanded, which matches the load length of a mid-sized pick-up. It is designed to be much more user-friendly for city use and having to manoeuvre in tight spaces.The concept was designed on the back of Hyundai research that

revealed a market share drop of five percent in the last 10 years for pickup trucks. They found that people wanted an open-bed vehicle but were put off by its limitations and size, with the biggest shift being among Millennial car users (customers born from the early 1980s onwards). To this end, Hyundai wanted to design a model more suited to differing, modern lifestyles.Tom Lee, Vice President and Head of Hyundai Africa and Middle East Regional Headquarters, said: “The Santa Cruz Concept is a testament of Hyundai’s constant commitment to developing and enhancing our range of models. We aim to provide our customers globally a car that fits their market needs.”

Sanji Security Systems (Pty) Ltd is privately owned by Management and the Gerber Goldschmidt Group, an International Company. The Group was established 94 years ago and has a presence in most major countries.

Sanji is located in Kyalami, South Africa. Our Headquarters accommodate full

design, production and warehouse facilities. Sanji Security Systems (Pty) Ltd is an

ISO 9001 listed company and as such we are an internationally accredited company

in terms of both product design and manufacture. Sanji have been designing

vehicle security products for over 25 years and have earned a reputation for being

one of the leading vehicle security manufacturers in the world. We are renowned

for our ability to design leading edge security products. We have been granted

numerous patents in the electronic field and received the prestigious SABS Design

Institute Award for 2001. Sanji is recognized internationally as a reliable supplier of

quality products. Hyundai, Renault, Kia and Mitsubishi are amongst our customers.

We export to the United Kingdom, Middle East, Australasia, Europe, Canada and

countries in Africa.


ECO-FRIENDLY In August 2013, Hyundai invested R6 million in its new head office. In doing so, it became the first automotive company in South Africa to receive a four-star, green-rated HQ in Bedfordview. The project took 21 months to complete and included Hyundai implementing an environmental management plan that ensured that their head office achieved the four-star green building rating almost straight from the get go.As part of its environmental commitment, all waste generated during construction was disposed of in an eco-friendly manner and the majority of the materials used to build the head office were locally sourced. Recycled steel was also used to reinforce the buildings structure and even some of the bricks from the original site were reused.Hyundai’s South African HQ was also fitted with solar panels to heat the water used in bathrooms and showers, and uses a rainwater-harvesting system that reduces water consumption. It features large tinted windows to exploit natural lighting and motion sensors that detect the light level and if people are in the room.Hyundai have extended this eco-friendly commitment to its dealerships, a number of which have implemented water recycling programmes to minimise water waste.

A BRAND FOR THE PAST, PRESENT AND FUTUREHyundai SA’s philosophy remains the same as those in place when Hyundai was established in South Korea in 1967 - serving its customers by continuously striving to achieve the single goal of making excellent quality products with an emphasis on exceeding customer expectations.

31


33

KENYA NATIONAL WATER

CONSERVATION & PIPELINE

CORPORATIONHelping the social and economic development of Kenya

with the provision of clean water

The Kenya National Water Conservation and Pipeline Corporation (NWCPC) was founded in June 1988. Its vision is to be a world class

institution in water infrastructure development and management.Its remit is to develop and manage water infrastructure and enhance water security and storage for multi-purpose uses, mitigation of drought and flood effects in a sustainable manner.


Much like any other organisation, NWCPC strives to act with integrity, accountability, transparency and professionalism. It prides itself on improving team work and operating with innovativeness.The corporation’s core mandate is to:• Develop state schemes and spearhead dam construction for water supplies, flood control and other multi-purpose uses, land drainage and construction of dykes• Carry out ground water recharge using flood water

• Develop, retain existing and expand bulk water supply to Water Service Boards and other Water Service Providers• Drill and equip boreholes

STRUCTUREThe NWCPC is divided into a number of main departments to handle separate areas of operations, which are:• Corporate & Legal Services Department• Construction and Electromechanical

35

Penelly Construction & Engineering Ltd is water & energy engineering fi rm located in Nairobi, wholly owned by Kenyans and agencies with multinationals on pumps, tanks, switchgear, transformers, pipes, generators, water treatment. The company was registered under Company’s Act in the year 1997 as Penelly Machinery Chemicals and later changed its name to Penelly Construction & Engineering Ltd in 2003.

We value partnerships, association and collaboration with our team, suppliers, fi nanciers and customers both public and private.

The company has a fully fl edged management team supported by a team of dedicated and experienced Project Engineers and Service Technicians.

‘Water confi dence through Innovative Solutions’

KENYA HOUSE MONROVIA STREET, P.O. BOX 9145 - 00100, NAIROBI

T +254 (020)2245572, 2229628, 2244844 F +254 (020) 315984

• Planning and Design• Human Resources and Administration• Finance Department“Evidence shows that countries which have made major strides in their socio-economic development have made major investments in water infrastructure,” says NWCPC.“In Kenya, the water sector will continue to play a major role in social and economic development given that all people in all sectors depend on water for various uses. Water availability and storage will then continue to be a key driver of development.”As Chairman of the Board, Hon. Dr. Julius Kones explains: “The

Corporation, as a key player in water infrastructure development and management, has been strategic in the development of boreholes, flood control infrastructure, water pans, small dams and large dams. Nine years into the Water Sector reforms, the Corporation has contributed significantly to the socio-economic development of the country as it continues to embrace its mandate.”The Corporation has introduced Performance Contracts in line with the national management accountability framework in Kenya which has helped the Corporation build its competitive advantage in performance as a public service institution.


Since their introduction, Dr Kones says, “This approach to provision of services has led to a remarkable transformation and improvement of the quality of services offered by our organisation.“Indeed, the results of the previous Performance Contracts have seen the Corporation ranked with ‘very good’ performance on the overall. I am pleased to report that the Corporation has largely been on target on most of its performance indicators and obtained commendation certificate from the Public Complaints Standing Committee secretariat.”

VISION 2030NWCPC has had to adapt to a substantial increase in the demand for water storage due to not only increasing population estimated and climate change requirements but also to national and international development policies and needs including Vision 2030.The Kenya Vision 2030 is the national long-term development blue-print that aims to transform Kenya into a newly industrialising, middle-income country providing a high quality of life to all its citizens by 2030 in a clean and secure environment.

37

The Vision was officially launched by the Grand Coalition Government in July 2008. The adoption of the Vision 2030 built on the successful implementation of the ‘Economic Recovery Strategy for Wealth and Employment Creation’ (ERS 2003 – 2007), which saw the country’s economy back on the path to rapid growth since 2002, when GDP grew from a low 0.6% and rose gradually to 6.1% in 2006.Crucial to these aims is of course providing clean and safe water to the country. Managing Director, Mr. Evans JWC Ngibuini, commented: “NWCPC will therefore not only have

to adapt to these changes but also reform and change faster so that it can provide world class leadership, be proactive and provide solutions on demand.”“We recognise the value other water sector institutions contribute to our success. We strive to improve on our operations and effectively execute our strategies where employee wellness, quality service delivery, environmental friendliness and corporate governance remain a priority.”

Royal Associates incorporates Royal Associates Consulting Engineers, Consult 2 Associates, Integrated Development Associates and Biosolution Systems and Engineering. The Firm undertakes consulting assignments in Civil and Structural Engineering Design, Training and Construction Supervision including Irrigation, Water Supply and Sanitation, Drainage, Bridge Design, Flood Control and Reclamation, Water Treatment and Storage.The Firm also offers consultancy Services in Economics, Infrastructure Planning, Project Management and Environmental Concerns, Gender and Community Facilitation, Agriculture and Rural Development, Resource Development etc. throughout Sub-Saharan Africa. The Regional Head Office for Africa is located at Royal Plaza, Nairobi, Kenya with SADC Regional Office located at Royal Hill Apartment in Lilongwe, Malawi. Other main Regional Offices are in Arusha, Tanzania and Kampala, Uganda.

Africa Head OfficeRoyal Plaza, Nairobi, Kenya, P.O Box 37705 – 00100Tel 0725 650 905 / 0733 265 237Email [email protected]

SADC Regional OfficeRoyal Hill Apartment, P.O Box 31340,Lilongwe, MalawiTel (265) 01771560Email [email protected]

www.royal-associates.org


39

JOBURG PROPERTY COMPANY

Helping to develop a ‘world-class African city’

The City of Joburg Property Company (JPC) manages and develops the City’s property portfolio, promoting both social and commercial

opportunities.The JPC is committed to working towards the city’s growth and development strategy, Joburg 2040. It is committed to helping to make Joburg a ‘world-class African city’. “We pride ourselves on maximising the social, economic and financial value of the City of Johannesburg’s property portfolio and enhancing its efficient use to drive investment, economic growth and job creation,” says JPC.


“As a promoter of innovative solutions to the development challenges of contemporary Johannesburg, the JPC utilises these assets to leverage private sector investment in public infrastructure.”

PROPERTY MANAGEMENTJPC provides all aspects of property management - development, asset management, land strategy, acquisition and stewardship in order to maximise the social, economic and financial benefit to the City of Johannesburg and support the City’s delivery objectives on a cost competitive basis.There are seven strategic objectives identified by the company. These are to:• Support economic development utilising the City of Johannesburg’s property portfolio;• Support community development through using the City’s property portfolio;• Support the Housing Master Plan and delivery through the use of the City’s property portfolio;• Support environmental programmes and initiatives in the management of the City’s property portfolio;• Establish land strategy, land acquisition and land stewardship in line with the City of Johannesburg’s priorities;• Ensure financial sustainability; and• Ensure good governance and a professionally managed company.

PORTFOLIOThe property portfolio is valued at some R8.6-billion (US$1.2-billion), with approximately 64,000 properties which cover 39,000 hectares across seven municipal regions.JPC manages properties in the most vibrant and fast-growing hot spots in Johannesburg, including Newtown, Soweto and Sandton, creating excellent opportunities for both local and foreign investors.The company also specialises in utilising council-owned land assets to leverage private sector investment in public infrastructure.Realising both the social and economic value through the management and development of Council-owned properties and maximising their potential is a key priority of the JPC, increasing their value and long-term returns.

DEPARTMENTSJPC’s Property Asset management provides a strategic advisory role relating to activities of capital investment, portfolio planning, disposal of single asset and /or entire portfolios and identification of possible scenarios for the positioning of the portfolio. The primary objectives are the means of intervention of complex real estate operations and identification of potential utilisation or investment opportunities.The Property Management function involves obtaining and maintaining value from the property portfolio by

41

effectively administering and leasing, acquiring and selling, and ensuring maintenance of the property.Property Development aims to maximise the financial, economic and social returns from the sale and/or lease of council owned land by active engagement with the property development value chain, in line with the City’s Growth and Development Strategy.Over the last several years, the unit has successfully facilitated the completion of a range of projects with a combined investment value of nearly R2bn.These projects include:• Worldwear Shopping Centre• FNB Westbank Offices• Pan African Shopping Centre• Mofolo North residential development• Melrose Crossing• Soweto Hospice in Diepkloof• Orlando ekhaya projects- including University of Johannesburg campus, Orlando Towers & JoshCo Hostel conversion; and• Dale Lace Village in Westcliff.JPC also partner with other municipal owned entities such as the Johannesburg Development Agency and Joburg City Parks as well as relevant private sectors to ensure efficiency and delivery, for maximum commercial returns “without losing our social focus,” it says.

A LONG TERM VISIONJPC’s sustainability vision ensures there is efficient management of planning, acquisition and disposal, operation and effective maintenance and growth of Council-owned properties.There are several areas of focus to to ensure this. This includes better decision making: capital expenditure decisions should be based on rigorous and fully documented economic appraisals that take into account benefits and risks as well as financial parameters.Other steps include:• Improved planning and budgeting: the planning process helps identify gaps between existing assets gaps and assets required and also helps in budgeting process.• Improved reporting: reporting on service delivery potential, continued service delivery needs and economic viability.• Asset management planning: a central asset planning and control data repository.• Sweating of fixed assets: design assets in the most cost effective and operation efficient way.• Asset classification: asset class reflecting needs rather than reporting requirements.• Building efficiency: efficient asset life cycle operational and maintenance costs• Portfolio growth: have a long term vision of future utilisation of developable land.


Business Coverage Real Estate (DPS) (P).indd 2 2014/10/22 11:11 AM

43

Business Coverage Real Estate (DPS) (P).indd 3 2014/10/22 11:11 AM


2015events

45

Conmach Nigeria16-19 October 2014Venue Landmark Exhibition CentreLocation Lagos, Nigeria

21st Africa Oil Week/Africa Upstream Conference 3-7 November 2014 Venue Cape Town International Convention Centre Location Cape Town, South Africa

Africa Com11-13 November 2014Venue Cape Town International Convention CentreLocation Cape Town, South Africa

11th Annual West African Power Industry Convention (WAPIC)18-19 November 2014Venue Eko Hotels & SuitesLocation Lagos, Nigeria

MINING INDABAFebruary 9th – February 12thCape Town International Convention Centre

Cape Town, South AfricaThe world’s largest gathering of the most influential stakeholders – financier, investors, mining professionals, government officials, etc- in African mining. By attending Investing in African Mining Indaba, you will join an international, powerful group of industry professionals that make Cape Town, South Africa their preferred destination to conduct important business and make the vital relationships to sustain their investment interests. More than 7,000 of the most internationally-diversified and influential audience can be found at the annual Investing in African Mining Indaba.www.miningindaba.com

NIGERIA OIL & GAS CONFERENCE & EXHIBITION (NOG)March 16th – March 19thInternational Conference Centre

Abuja, NigeriaNigeria Oil & Gas Conference & Exhibition (NOG), West Africa’s leading oil and gas event, returns to Abuja on16-19 March 2015.Under the auspices of the Federal Ministry of Petroleum Resources and Nigerian National Petroleum Corporation (NNPC), NOG is the established meeting place for the entire Nigerian oil and gas value chain from Ministries and Government organisations to leading international and indigenous producers and service providers.NOG this year will bring together a distinguished line-up of local and international speakers to establish best practice and discuss practical solutions, enabling Nigeria to continue its journey towards transformation and growth. www.cwcnog.com


Oliver Moy PublisherFor enquiries [email protected]

African Business Coverage

Documents

African Business Coverage Issue 9