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SPECIAL REPORTiSON Group’s Ramesh Awtaney, discusses onshoring in Africa
DELIVERING FOR AFRICA
DHL Supply Chain Africa’s regionally-led growth strategy
INTERVIEWDjibouti’s Minister of Energy
PwCSA businesses need to factor cybercrime into their risk assessments
FOUR TIPS FOR IMPACT INVESTORS
May 2016 | www.africanbusinessreview.co.za
H E L L O A N D W E L C O M E T O the May edition of African Business Review. This month we speak to DHL Supply Chain Africa’s CEO Paul Stone, who reveals how the globally-present logistics company has enhanced its commitment to the continent by rolling out a series of technological innovations, developing the skills of its workforce, through a regionally-focused strategy. We also explore the successes of iSON Group.
Trevor White and Junaid Amra from PricewaterhouseCoopers explore data collected in the company’s Global Economic Crime survey. Together, they focus on South Africa – an African country that has reaped the benefits of high tech innovations more than most – and reveal some quite interesting (and startling) statistics about cybercrime.
We also feature an exclusive interview with Djibouti’s Energy Minister, Ali Mahmoud Yacoub, covering the country’s $4 billion mega gas project and the effects that this will have on the nation’s economic development. Lastly, as Foreign Direct Investment (FDI) into the continent climbs to an all-time high, we explore the top four tips for impact investing in Southern Africa, looking at research compiled by Global Impact Investing Network.
We hope you enjoy the read; feel free to share your thoughts on Twitter @AfricaBizReview
Enjoy the issue!Nye Longman
Editor
African Institutions
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E D I T O R ’ S C O M M E N TIN TH IS ISSUE
TOP T IPS
LEADERSHIP
Fuelling Djibouti’s future the country’s $4 billion mega gas project
PwC Forensic Services
22
14
6
TECHNOLOGY
4 M a y 2 0 1 6
CONTENTS
Features
Four tips for impact investing
DHL Supply Chain Africa
28
Company Profiles
Mineral Deposits (GCO)56
5
iSON Group40
Fuelling Djibouti’s future
E d i t e d by: NYE LO N G M A N
African Business Review speaks to Djibouti’s Minister of Energy, Ali Mahmoud Yacoub, about the country’s $4 billion mega gas project developed in tandem with the government of Ethiopia and China’s POLY-GCL Petroleum Group
Q & A
77
African Business Review speaks to Djibouti’s Minister of Energy, Ali Mahmoud Yacoub, about the country’s $4 billion mega gas project developed in tandem with the government of Ethiopia and China’s POLY-GCL Petroleum Group
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Q & A
What contribution can the Ministry of Energy make to the economic progress of the country?Mr Yacoub: The energy sector is one
of the main pillars of socio-economic
growth in Djibouti. We are currently
working on the implementation of
energy policies and have taken a
number of steps to drive sustainable
development, achieve energy security,
create jobs, and reduce poverty.
Under the leadership of President
Ismaïl Omar Guelleh, Djibouti is
committed to becoming the first
country on the continent to generate
all its energy requirements through
renewable sources by 2020. To
reach this goal, we are working with
a number of international partners
and the private sector to harness
our geothermal, wind, and solar
resources, as well as develop our
energy infrastructure in order to
achieve energy independence, attract
investment, boost the local economy,
and create employment opportunities.
In parallel with the development
of renewable energy, Djibouti has
embarked on several major energy
infrastructure projects with Ethiopia,
including the construction of a
550 kilometres refined petroleum
products pipeline linking Djibouti’s
ports to the city of Awash in central
Ethiopia, which is scheduled for
completion in 2018, and most recently
the launch of an LNG project, which
comprises a 700 kilometre natural
gas pipeline, a liquefaction plant
and an export terminal at Damerjog.
These projects, which form part of
the Government’s plan to develop
infrastructure across the country,
will enhance regional integration,
and will accelerate the process
of socio-economic development
across the region, as well as reinforce
Djibouti’s position as a commercial
and regional economic hub.
What are the indirect effects on the local economy?Mr Yacoub: The LNG project, which
will take three years to complete,
is expected to create employment
opportunities for thousands
of Djiboutians both during the
construction phase and following
completion, and will have a positive
impact on the local economy. Our
Q & A
9
F U E L L I N G D J I B O U T I ’ S F U T U R E
Government’s top priority remains
creating jobs, growth and long-
term prosperity for Djiboutians.
This new venture along with other
major infrastructure development
projects will support economic
growth, accelerate job creation, and
thus reduce poverty. In addition to
generating jobs, this ambitious
project will expand the capacity
of Djibouti’s sea ports, which
contribute directly to inward
investment and GDP growth.
What measures are you taking to ensure that the construction of the project is carried out efficiently and in an environmentally sustainable manner?Mr Yacoub: We are committed
to constructing, maintaining and
operating the new LNG project in an
efficient, safe and environmentally
sustainable manner, consistent with
internationally accepted technical
standards for construction and
operation of pipelines. To achieve
1 0 M a y 2 0 1 6
make the liquefaction plant and both
the LNG and oil pipelines operate
safely and reliably. We are also
working with Black Rhino Group and
Mining Oil & Gas Services to establish
extensive preventative measures
to ensure that the construction of
the 550 kilometre refined petroleum
products pipeline linking Ethiopia
and Djibouti is safe and sustainable.
Our goal remains the construction
of efficient and safe transportation
systems with minimum risk to the
population and to the environment.
What are the current energy challenges faced by the Government of Djibouti and how do you plan to resolve them? Mr Yacoub: Energy is essential for
the success of Djibouti’s economy.
As our economy grows, so does our
demand for energy. Djibouti remains
heavily dependent on imported fossil
this, we have complied with various
regulatory processes, as well as
prepared a feasibility analysis to
determine the pipeline route and
ensure that it does not adversely affect
the environment. We are working
with Chinese company, POLY-GCL
Petroleum Group Holdings Ltd, which
has extensive experience with large-
scale energy infrastructure projects
and a good track record of being
environmentally responsible. Together,
we will develop a transportation
system which will allow the efficient
and safe movement of natural
gas from Ethiopia to Djibouti.
Further, the LNG processing plant,
which will have the capacity to
produce up to 10 million tonnes
of liquefied natural gas per year
once completed, will be equipped
with extensive systems to store
and process LNG safely.
The Government is determined to
“The launch of this important project constitutes a new chapter in our country’s energy sector, a chapter
in which we will generate economic growth and consolidate Djibouti’s position as an energy hub”
Q & AQ & A
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F U E L L I N G D J I B O U T I ’ S F U T U R E
“The launch of this important project constitutes a new chapter in our country’s energy sector, a chapter
in which we will generate economic growth and consolidate Djibouti’s position as an energy hub”
1 2 M a y 2 0 1 6
fuels and power, which exposes it
to market price volatility, creating
uncertainties and hindering socio-
economic development. In order to
address these energy challenges,
we have developed a strategy for the
next decade and an action plan for the
coming five years, which aim to reduce
energy dependency through the use of
renewable resources that will allow all
Djiboutians to benefit from abundant,
reliable, and affordable energy.
In addition, in its Vision 2035
long-term development plan, the
Government has set out its strategy to
address energy challenges and aims
to make Djibouti the first African nation
to use 100 percent green energy by
2020. We recognise the importance of
developing our abundant geothermal,
wind and solar resources to meet both
our economic and social development
objectives. We are currently working
with our development partners
and private investors from the US,
Japan, Australia, and Italy to develop
Djibouti’s geothermal potential, which
is estimated at more than 1,000 MW
throughout the national territory. We
are also working with companies
Q & A
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F U E L L I N G D J I B O U T I ’ S F U T U R E
including Qatar Electric and Green
Enesys of Germany to develop wind
and solar power projects. We have set
a target of connecting 30 percent of
the rural population to electricity using
solar energy by 2017. The development
of renewable resources will not only
provide Djibouti with a sustainable,
secure and affordable energy supply,
which is vital for our future prosperity,
but also boost employment.
By increasing the share of
renewable energy sources, Djibouti
will also cut its greenhouse gas
emissions. The Government continues
to work with other countries to tackle
climate change. As part of its national
commitment to the Paris climate
conference, Djibouti has pledged
to decrease CO2 emissions by 60
percent by 2030, which cannot be
achieved without the development of
renewable energies.
In what ways will this project strengthen ties with the countries involved?Mr Yacoub: The LNG project is the
largest joint energy infrastructure
project between the Republic of
Djibouti and Ethiopia. This project will
increase energy security for Djibouti,
Ethiopia and our Chinese partners,
who are providing funding; alleviate
poverty in our country, as well as aid
economic development in the region.
Djibouti is committed to regional
integration among the countries of the
sub-region and is creating conditions
to further strengthen economic ties
with Ethiopia. In accordance with
the COMESA’s vision, we are looking
to achieve economic prosperity
through regional integration.
The launch of this important project
constitutes a new chapter in our
country’s energy sector, a chapter
in which we will generate economic
growth and consolidate Djibouti’s
position as an energy hub. Djibouti
has a special bond with Ethiopia and
this new project will further cement
these ties. The two countries are
making progressive steps to make
the Ethiopia-Djibouti belt the main
logistics hub for East Africa; working
to enhance cooperation in the energy
sector; as well as setting an example
for other countries in the region in
terms of advancing the regional
integration policy.
Written by Trevor White, PwC Forensic Services partner and Global Economic Crime Survey Leader and Junaid Amra, PwC Cybercrime and Forensic Technology Services Associate Director
PwC Forensic Services Organisations need to incorporate cybercrime into their risk assessmentsWhile the uptake of technology and the proliferation of the Internet of Things presents South African businesses with a wealth of opportunities, the threat of cybercrime remains a largely overlooked threat, as reported in PricewaterhouseCoopers’ recent Global Economic Crime survey.
TECHNOLOGY
1 5
PwC Forensic Services Organisations need to incorporate cybercrime into their risk assessments
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TECHNOLOGY
WORLDWIDE, DIGITAL TECHNOLOGY continues to
transform and disrupt the world of
business, exposing organisations
to a multitude of opportunities
and threats. Therefore, it is hardly
surprising that cybercrime continues
to rise rapidly, ranking as the
second-most reported crime in this
year’s PwC Global Economic Crime
Survey and taking fourth place
from a South African perspective.
The fast take-up of cloud-based
systems to store information by
businesses and the growing use
of the ‘internet of things’, where
everyday objects are connected to
the internet, are particularly more
vulnerable to cyberattacks. The
rise in cybercrime has caught many
businesses off guard with no plans
in place to fend off online fraud.
Most organisations are still not
adequately prepared for it, or
even understand the risks faced,
with only 35 percent of South
African organisations reporting
they have a fully operational cyber
incident response plan in place.
The 2016 Global Economic
Crime Survey interviewed 6,337
participants in 115 countries. In
South Africa, 232 organisations
from a broad spectrum of
industries took part in the survey.
The incidence of reported
cybercrime among our respondents
is substantially higher this year,
with a 23 percent increase reported
from the previous survey conducted
in 2014. So although cybercrime
in the South African context has
shifted two places from sixth to
fourth position, it is the percentage
increase that is more alarming. A
third of respondents said they
had been affected by cybercrime.
Another 16 percent said they didn’t
know whether they had or had
not been victims of cybercrime.
In terms of financial losses, at
least 27 percent of respondents
who have experienced cybercrime
had losses between $1 and $50,000
while 3 percent had experienced
losses greater than $100 million.
It is concerning to note that 14
percent of respondents don’t
know or were unable to quantify
financial losses even though they
P W C F O R E N S I C S E R V I C E S
“Only 35 percent of South African organisations have reported having a fully operational cyber incident response plan in place”
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TECHNOLOGY
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had been victims of cybercrime.
South African businesses
considered financial losses to be
the most damaging impact of a
cyber breach, followed closely by
legal implications and reputational
damage. This differed from
the global perspective, where
reputational, legal and regulatory
impacts were considered to
be the most significant.
Over the last few
years, cybercrime
has evolved to a
point where it can
be classified into
two categories:
Firstly, the kind that
steals money or data
that is monetisable and
bruises reputations; and
secondly, the kind that steals IP
and lays waste to an entire business.
The latter are usually classified
as transfer-of-wealth attacks.
Although the long-term damage
to organisations and the economy
is far-reaching and far higher for
transfer-of-wealth attacks, the
damage arising from the theft
of credit cards or personally
identifiable information can also be
harmful. This comes in the wake
of the promulgation of privacy
legislation such as the Protection
of Personal Information (PoPI) Act
and the impending Cybercrimes and
Cybersecurity Bill. South African
organisations will increasingly
find themselves
having to deal with
regulators and
other authorities
in the event of an
incident arising.
According
to the survey
findings, almost
three quarters of
organisations (69
percent - a 15 percent
increase on 2014) see an
increased risk of cyber threats. A
disparity was noted between the
responses of CEOs and CFOs:
83 percent of Chief Executive
Officers and only 57 percent of
Chief Financial Officers see an
increased risk in cyber threats.
Responsibility for redressing
‘The rise in
cybercrime has caught many
businesses off guard with no plans in place to
fend off online fraud’
P W C F O R E N S I C S E R V I C E S
TECHNOLOGY
incident occurs, and delays in the
procurement process often result
in a time lag during which critical
evidence is lost or damaged.
On a closer study of incident
response teams, we noted
that teams are still weighted
towards having more IT security
personnel (73 percent) and IT
staff (62 percent), while only 28
percent of organisations include
digital forensic specialists.
Although organisations have made
significant strides, in particular
regarding the sophistication and
preparation around cyber-attacks
since 2014, most organisations
are still not adequately prepared
for them to understand the risks
they face or manage the incidents
effectively. It is critical that
companies incorporate cybercrime
into their risk management
assessments. Organisations need
to understand and plan for cyber
threats in the same way as any
other potential business threat.
This includes drafting a response
plan, as well as monitoring
and scenario planning.
cyber vulnerabilities requires input
from the board to ensure risks are
properly addressed and identified.
However, the survey suggests that
many boards are still not sufficiently
proactive regarding cyber threats
and many do not understand their
organisation’s digital policies to
assess the risks. Only 48 percent of
boards are requesting information
around cyber-readiness locally;
this is slightly higher than the global
average of 43 percent. Only 35
percent of respondents have a fully
operational incident response plan;
13 percent don’t know if they have
one; and 12 percent do not have one
nor do they intend implementing one.
Should a cyber crisis arise,
only 34 percent of organisations
have personnel that are ‘fully
trained’ to act as first responders,
and 20 percent of organisations
indicate that they will make use of
outsourced personnel. Through the
investigations we have conducted
we often find that organisations
which make use of outsourced
digital forensics providers only
start procuring services when an
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“Many boards are still not sufficiently proactive regarding cyber threats and many do not understand their organisation’s digital policies to assess the risks”
P W C F O R E N S I C S E R V I C E S
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TOP T IPS
2 3
4 tips to improve impact investing in
Southern Africa A new report compiled by the Global Impact
Investing Network (GIIN) sheds light on impact investing activity in Southern Africa, and looks at
trends, challenges, and capital flows
IT IS CLEAR that every country in Southern Africa has its own particular set of conditions that affect the ways in which impact investing is handled. Impact investors must therefore take their time to carefully learn about
the conditions in each individual country. GIIN researchers, in their report entitled Landscape for Impact Investing in Southern Africa, have compiled four key considerations that apply to Southern Africa, which are:
Written by: Nye Longman
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TOP T IPS
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LEVERAGE TECHNICAL ASSISTANCE (TA) FACILITIES TO BUILD THE PRE-INVESTMENT PIPELINE
More pre-investment support is required in order to to develop a strong pipeline of investable opportunities for businesses; TA funders like USAID and DFID are recognising the importance of getting companies to the point where they can successfully raise capital. The report says: “Targeted, tailored support requires an upfront commitment of resources but has proven effective in preparing potential targets for investment and in building high-quality deal flow. This process can also dramatically reduce diligence timelines if the investor is able, before investment, to increase familiarity with and visibility into a business.”
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F O U R T I P S F O R I M P A C T I N V E S T I N G
2 5
DEVELOP SECTOR SPECIALISATION
Impact investors can also drive growth, impact and solid returns by narrowing down their focus on sector-specific portfolios. This has enabled some to use their existing knowledge to target some less well-known
opportunities earlier and also to reduce diligence timelines. The report expands: “Sectors such as agriculture, energy, and financial services present large opportunities where different companies often face similar challenges; learnings can be shared across portfolio companies.”
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TOP T IPS
2 6 M a y 2 0 1 6
03 EXPAND INVESTMENT INSTRUMENTS
There is a rich variety of early-stage businesses in the Southern African ecosystem - structured investments (for example: milestone-based conversion and profit-sharing debt) can fulfil a
significant need for financing that more conventional equity and debt deals cannot. The report says: “Such creative structures can help entrepreneurs meet their ongoing cash-flow requirements while delivering long-term returns in line with investor expectations.”
F O U R T I P S F O R I M P A C T I N V E S T I N G
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ESTABLISH LOCAL PRESENCE
Locally-situated impact investors across Southern Africa have reported gaining a markedly significant advantage in their ability to source investment opportunities, in an environment that typically lacks investable businesses. “Currently, only a handful of
impact investors have staff in the region outside of South Africa, and limited impact capital is available there. Locally-based impact investors will be able to identify opportunities more easily and will incur fewer costs than investors operating with a fly-in, fly-out model that may require multiple trips in order to perform due diligence and manage the portfolio.”
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Delivering for Africa
Written by Nye LongmanProduced by Charlotte Clarke
3 0 M a y 2 0 1 6
DHL SUPPLY CHAIN AFRICA
Having successfully operated in the continent for nearly 50 years, DHL
Supply Chain Africa is now well positioned to further develop its presence. While adopting a range of technological innovations, the logistics company is engaged in a regionally-focused growth strategy that will see its award-winning services and solutions rolled out across even more businesses. Operating in Africa is challenging for any business, but DHL’s success is so intimately tied to that of its customers and partners that an entirely new level of performance is demanded on a daily basis. Backing
up its operational and regional growth, the company has also made a concerted effort to develop its talent base, while maintaining its exemplary CSR initiatives.
OperationsDHL Supply Chain Africa also offers a broad spectrum of supply chain services which cover everything from sourcing, storage, supply chain analytics and lead logistics provider (LLP) services. Leveraging its extensive cross-sector experience, the company is also able to provide warehousing services for everything from raw materials to finished goods.
DHL SUPPLY CHAIN AFRICA
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Listed on the Johannesburg Stock Exchange for 18 years, Primeserv Group Limited provides customised Human Capital services
and solutions through its proprietary INTHRGRATE TM model.
Our clients include government, parastatals, multinationals, listed organisations and large private companies.
Primeserv is a best practice Human Capital solutions provider to the logistics industry, serviced by a dedicated Logistics Division
with a national footprint.
Experience the Primeserv Difference. Contact our Group CEO Merrick Abel on
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O U T S O U R C I N G
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DHL SUPPLY CHAIN AFRICA S U P P LY C H A I N
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people productivity performance TM
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A proud partner to
PLANS COME TOGETHER WHEN PEOPLE WORK TOGETHER
H R S O L U T I O N S T R A I N I N G A C A D E M Y R E C R U I T M E N T R E S O U R C I N G O U T S O U R C I N G
Listed on the Johannesburg Stock Exchange for 18 years, Primeserv Group Limited provides customised Human Capital services
and solutions through its proprietary INTHRGRATE TM model.
Our clients include government, parastatals, multinationals, listed organisations and large private companies.
Primeserv is a best practice Human Capital solutions provider to the logistics industry, serviced by a dedicated Logistics Division
with a national footprint.
Experience the Primeserv Difference. Contact our Group CEO Merrick Abel on
[email protected] for a personal introduction to Primeserv.
O U T S O U R C I N G
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DHL Supply Chain Africa’s CEO Paul Stone emphasises that on top of delivering a diverse and often challenging remit, the company is also able to maintain an ethos of continuous improvement: “We have a team that drives continuous improvement in the business and a culture of striving to be better year-on-year.
“This is striven for, budgeted for and driven from the top, and we have a group of people who are managing to drive that through a number of different initiatives and processes. Those might be new systems, enhancements to existing systems or process reviews. So continuous improvement is pretty
much embedded in the DHL Supply Chain team culture.”
Supply chain management Stone explains that, while the
company’s SCM strategy is consistent across
all countries, it remains flexible, depending on the situation: “We have approximately 700 of our own vehicles
on the road on any given day and also
partner with a number of subcontractors across
Africa to different degrees. “We manage this on a
straightforward SLA basis currently with the aim of forging long term partnerships. Most of the subcontractors have worked with us for 5 years or more and
4,500Number of Employees
at DHL Supply Chain Africa
DHL SUPPLY CHAIN AFRICA
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DHL SUPPLY CHAIN AFRICA S U P P LY C H A I N
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during this time they have come to understand our business and our customer’s needs.”
Due to the unpredictability of local markets, supplier investments are, by necessity, made over a shorter time period, as Stone explains. He says: “Our business is cyclical. A contract will typically run between three to five years so we always have that on-going real time view rather than a 10 or 15 year view because that would be impossible for me to predict.”
In order for DHL Supply Chain Africa’s remit to be executed seamlessly, the company has spent a great deal of resources on ensuring that its staff are qualified
and motivated to achieve world-class results. Stone explains: “We have dedicated training programmes at all levels. We also have development programmes
where we identify
talent and nurture that talent to get to the next level. We have a clear plan which includes, amongst others, mentorship
programs, planned events and personal development plans.”
Technology While Stone compares South Africa’s infrastructure favourably to more advanced European
Paul Stone CEO Africa and Managing
Director South Africa
The reliable transport and distrubution logistics partnerwith DHL Exel supply chain (K) Ltd
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‘In order for DHL Supply Chain Africa’s remit to be executed seamlessly, the
company has spent a great deal of resources on ensuring that its staff are qualified and motivated to achieve world-class results’
S U P P LY C H A I N
www.dh l .co .za/en 3 7
economies, he and his teams are intimately aware of the challenges that lie outside of the continent’s second largest economy. He is also keen to leverage technology to make the best of a sometimes unfavourable situation: “Every customer needs to have information in real-time. I don’t see any customer who doesn’t want to have a real-time dashboard on their smartphone so they can understand what is happening.
“So we offer a consistent solution that gives that visibility across the continent. We’ve invested in technology and visibility tools and this is to be enabled for our customers as well. This is a key differentiator in the market for us.
Will we be the cheapest in town? No, but we will deliver a superior service that allows the customer to enhance their own offer.”
He adds that the business only uses the best-in-breed IT Solutions, particularly across finance, warehouse and transport management: “For example we have Mix Telematics in our IT landscape which provides some of the visibility that we’re talking about and then for warehouse management we deploy the market leading Manhattan’s WMS.
“I can also put another view on top that we call Connected View, which is a DHL system that takes visibility to another level. Depending on the customer, they can have visibility right from when their order is picked through to delivery and individual case level if they wish to do so.”
DHL Supply Chain Africa is
‘In order for DHL Supply Chain Africa’s remit to be executed seamlessly, the
company has spent a great deal of resources on ensuring that its staff are qualified and motivated to achieve world-class results’
3 8 M a y 2 0 1 6
DHL SUPPLY CHAIN AFRICA
www.dh l .co .za/en 3 9
S U P P LY C H A I N
backing up this technological offering with a number of physical assets which include fleet replacement which takes into account a number of new key customers moving forward.
Social responsibility “We want to grow in a way that is culturally balanced; I don’t just want a business that wins from a monetary side. It’s got to be a business that has got the right culture, the right ethos, and the right work ethic to go forward. That’s important to me and important for our group,” Stone explains.
DHL Supply Chain Africa has a dedicated CSR team that operates on both local and regional levels, which works to achieve both environmental and social goals. Alongside funding and volunteering for a range of initiatives to this end, the company also uses its
strong internal governance measures to improve standards and drive out corruption.
“We are already paperless in our warehouses and within the office environment we have a number of different initiatives to drive paper out of our business. I can’t say we are a completely paperless society but we are moving to that culturally.”
Having been a logistics leader in Africa for so long has not given DHL Supply Chain Africa cause to be complacent. The company has invested in both its technological assets and its workforce to ensure that the business is robust enough to weather the often unpredictable nature of the developing continent. Ensuring that its operations are having a positive impact on both communities and the environment has cemented its reputation as a business that cares deeply about the future of Africa.
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Onshoring in Africa
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ISON GROUP
iSON’s Founder, Ramesh Awtaney, describes how his company has created history with its unique African business model
iSON Group is one of Africa’s largest IT and ITeS companies, with a strong presence in 25
African countries, and a staff team of over 10,000 in the continent. iSON caters to a host of clients in sectors such as Telecoms, Banking and Financial Services and Insurance (BFSI), Government, Retail, Oil & Gas, and Aviation. iSON is split into three operating arms: iSON Technologies, which concentrates on IT solutions; iSON
BPO which provides call centre and process outsourcing services; and the newly-launched iSON Innovation and Investments, which is an initiative for driving consumer internet business in Africa.
Ramesh Awtaney is the Founder and Chairman of the company, and has maintained a strict vision of the company since its inception: “Fifteen years ago, the words ‘outsourcing’ and ‘offshoring’ were used like synonyms,” he explains.
iSON GROUP
T E C H N O L O G Y
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Ramesh Awtaney Founder and Chairman
Ramesh Awtaney, a serial entrepreneur since 2009, is the Founder and Chairman of iSON Group.
As a seasoned MNC executive and technology leader with nearly two decades of experience in Telecommunications and IT, Ramesh executed the path-breaking IBM-Bharti IT outsourcing deal on a revenue-share basis for the first time, which went on to become a benchmark for the industry. The telecom outsourcing arrangement is a Harvard Business case study that has been discussed globally in more than 50 boardrooms, and has also been referenced in the Global Strategies for Emerging Asia. Earlier at Ericsson, he managed sales and operations of all India GSM business.
For more information: https://en.wikipedia.org/wiki/Ramesh_Awtaney
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Pravin KumarGlobal CEO, iSON BPO
Pravin is an industry veteran with more than 35 years of experience during which he has been credited with the creation of three large business empires. Pravin is a widely respected name in the Business Process Outsourcing space and is regarded as a pioneer in call center services. He is a Board member of iSON BPO - the leading ITeS services company in Africa. Under his strong leadership, iSON BPO now has operations in 16 countries in Africa and ASEAN regions with about 10,000 employees within 3 years of iSON BPO’s establishment.
T E C H N O L O G Y
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“Whenever a US based company was sending work to India, the Philippines, or Bangladesh, they used to call it ‘outsourcing’, whereas the reality was that they were offshoring the work. Off shoring is mainly about labor arbitrage while outsourcing is about ‘let me give the job to somebody who can do it better, faster, and cheaper than me’. We do not use the two words as synonyms. iSON does outsourcing, not offshoring.
“Africa is a developing continent with tremendous growth potentials, and availability of educated youths who lack relevant abilities and technological knowhow. We have used skills found in India, which is very mature in the IT and ITeS services industry, and applied this knowledge base to Africa to achieve optimal advantage. My motto is ‘let us not bring work
to intellectual property, but take intellectual property to work’.”
Local recruitmentAwtaney and his team are forming a unique and attractive business mix, and as such, the company has provided 10,000 jobs in Africa of which 99.5 percent are handled by locals, thus building an entire gamut of skills within the short space of five years.
“What you have to remember is that Sub Saharan Africa is not one country but 46. What we have done is created a 17-country delivery model, each fully equipped with a skill development center. We hire mostly fresh graduates who then undergo a company-sponsored skill development programme for six weeks, and upon successful completion, they are offered jobs in our call centers.”
T E C H N O L O G Y
iSON began in Nigeria, consciously
deciding on the most populous African country but
avoiding its larger cities. “We chose to do this because these cities are more marginalized in terms of employment and in a bid to be more socially responsible, we decided to take business to the smaller cities,” Awtaney says.
“We employ over 4,000 people in Nigeria, and less than 100 of them are in Lagos. We have a high turnover of call centre agents because it is a strenuous job, and many people are able to manage for only a short duration. However, having 10,000 people in this role at any time suggests that there is a demand for employment in this business. The agents that choose to leave are trained and better equipped for another job
in other services industries.”Many company leaders would
baulk at the concept of training their staff for future jobs, but not Awtaney, who is actually proud of this contribution to the African economy: “We are probably the largest services company which is creating employment and skills for those people and for society. We are very passionate about this and feel that we make a difference by changing the lives of people now and for posterity.”
In addition to the focus on local employment, iSON is passionate about gender diversity, maintaining a ratio of 46 women in every 100 employed by the company, which even by global standards is exceptional.
TechnologyiSON employs information technology graduates
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iSON GROUP
T E C H N O L O G Y
iSON is headquartered in
Lagos, Nigeria
iSON Group wins ASSOCHAM India- Africa Champion
in Biz Awards for "Disinguished Achievement in IT &
ITeS category " during Indo- Africa Summit 2015.
“Africa is a developing continent with
tremendous growth potential, and availability of educated youth who
lack relevant abilities and technological knowhow”
Jitendra Israni CEO, iSON Technologies
Jitendra Israni is the CEO of iSON Technologies, the technology and systems integration arm of the iSON Group. GTS a Middle East based company acquired by iSON Technologies in 2015 and focuses on IT enabled business process engineering is also led by Israni. He has extensive experience in Telecom and IT industry and has been associated with leading Telecom and IT companies in senior management roles in India and abroad.
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and postgraduates, as the skillset required above call centre level is more complex. These graduates are trained in Big Data, Analytics, Call Centre Technology, and mobile applications that enable a high level of efficiency in the operations of the company’s blue chip clientele.
For Awtaney, Information Technology is about utilising a platform to create partnerships. iSON boasts of some impressively large clients – MTN, Airtel, Etisalat, Millicom, GT Bank, Nakumatt, Fast Jet, Aga Khan Hospitals, Kenya Tourism Board, Ministry of Finance- Kenya, Crown Beverages Uganda etc. iSON enjoys premium partnership privileges with A list companies such as Oracle, Avaya, IBM, Cisco etc. Owing to the company’s expertise, client and partner support, iSON
expects that its staff numbers will grow exponentially by 2020.
“It took India’s largest IT company 18 years to get to 10,000 and over the next five years they grew from 10,000 to 100,000. We have hired 10,000+ in less than five years and believe we are poised to hit a 100,000 by 2020,” Awtaney says. “We’ve set a precedence and the market is confident about the company, so everybody wants to come and talk to us about doing their work efficiently and cost-effectively.”
Innovation and InvestmentsThe company has also created a platform called iSON Innovation and Investments, which is enabling entrepreneurship in Africa. iSON provides local entrepreneurs with capital, but more importantly enables them by sharing a deep
T E C H N O L O G Y
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Number of employees
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understanding of each local market’s nuances – ranging from regulation, local laws, and currency management, to local logistics.
Another important aspect of this is mentorship and guidance;
young entrepreneurs have an opportunity to interact frequently with Awtaney and his experienced management team, which is able to provide insights on scaling and managing sustainable growth in different markets across Africa. iSON Innovation has already made 2 investments in Africa: one of them is a leading taxi aggregation company called Mondo Ride, which is now live in Nairobi and Dar-es-Salaam, with expansion plans to launch in 15 additional cities in Africa over the next six months. The second investment is in a mobile digital recharge platform called Oliza, which is expected to launch services this month.
“The company operating system is an enablement platform,” says Awtaney. “Start-ups and large companies alike want to utilise our know-how; they want to build their
T E C H N O L O G Y
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Akshay Grover CEO, iSON Innovation and Investments
Akshay Grover is the CEO, iSON Innovation & Investments. He is responsible for capital raising, mergers and acquisitions and strategic initiatives for the iSON Group. Grover was associated with Ernst and Young India previously and has expertise in TMT sector across Middle East and Africa, Europe and India.
iSON GROUP
Number of employees
Africa strategy on the back of our success and our presence. I truly want to monetise the Innovations and Investments platform for use of other companies to assist everyone’s presence in Africa. For example, one company came to
us asking if we could bring them to Africa – it was live in Kenya within 45 days, and would go live in ten other countries in six months.”
iSON follows a strictly onshore market – “for Africa, in Africa” as Awtaney says – and Africa is 90
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T E C H N O L O G Y
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From its origins in AT&T, then Lucent, Avaya has
continued to prove its leading reputation by providing
reliable services to its partners. Today, Avaya is the
only company that specializes in complex business
communications –internal for companies’ teams and
external for their customers – based on open, mobile
software platforms, with the network infrastructure to
meet customers’ underlying needs.
Avaya specializes in vertical, industry-focused
solutions and services that focus on business
outcomes for enterprises of all sizes and types, rather
than the traditional one-size-fi ts-all approach. The
Avaya SDN-Fx networking architecture is the fi rst
to deliver automation and programmability from the
network core to the user edge, providing “connect
anything, anywhere” simplicity – the perfect platform
for building Internet of Things strategies and to
underpin smart digital transformation.
iSON Technologies is one of Avaya’s most valued
partners in Africa, Strategic Win partner of the Year
at the Avaya Partner Forum event in 2015. The two
companies have been working together since 2010,
and now partner in 21 countries across the continent.
iSON is an Avaya Platinum Partner, the highest level.
Digital Transformation
Together with iSON, Avaya is helping organizations
in Africa to progress on their digital transformation
journeys and enhance the customer experience.
Governments and enterprises across the region are
looking at digitization strategies to drive operational
excellence, customer and citizen satisfaction, and
deliver greater competitive differentiation. Avaya’s
client-tailored and outcomes-focused digital and
smart services elevate organizations of every scale
and accelerate growth through their digital journeys,
with vertical, industry-focused solutions and services
that focus on outcomes.
As African nations and businesses look to expand
and play a greater role in the global economy, Avaya
and iSON have strengthened their relationship. Today,
Avaya and iSON work closely on key strategic accounts
across Africa, helping to transform the customer
experience for leading brands in the Telecom Service
Providers, banking, and fi nancial services industries.
To give just one example, the two companies
have successfully delivered customer experience
transformation for one of Africa’s largest service
providers, having designed and deployed contact
center technology and managed services across 16
countries. The solution leverages Avaya’s leadership
in contact center technology and iSON’s extended
reach and skilled workforce, providing a fully
integrated customer experience, supporting 60 million
subscribers in 18 languages, while reducing costs and
increasing performance.
The successful contact center solution implementation
has led to iSON winning multiple Contact Center
awards and delivered a reference for iSON and Avaya
in every country. iSON has also won multiple other
awards for its work with Avaya in different African
countries, including with one of the world’s leading
international banking groups.
Contact Center Solutions
Today, iSON and Avaya are providing contact center
solutions to one of the largest mobile communications
companies in the world. iSON is working with Avaya
to deploy Avaya Aura Unifi ed Communications and
Contact Center solutions to the company’s operations
in seven countries, and giving Avaya a presence in
90% of the service providers in Africa.
Avaya’s successful transformation into a customer-
centric company focused on software and services –
which account for 73% of revenue – and the strength of
its solutions fi t well with iSON’s strategy of customer
experience management. With Avaya able to deliver
a complete solution for the customer experience,
including voice and data, and offering stable, reliable
solutions, iSON is looking to extend the partnership
outside of Africa, with a goal of operating in the United
Arab Emirates and other countries in the Middle East.
Africa is fertile ground for development.
Avaya and iSON have together planted the seeds of
a lasting partnership that is fl ourishing and delivering
results.
For more information please visit
our website: www.Avaya.com
Avaya and iSON Technologies Partner to
Drive Digital Transformation for Africa
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iSON GROUP
percent of the company’s revenue: “For most other large companies in Africa, it is 1 or 2 percent. We are focussed and committed to Africa. We do not have the kind of overheads a US company or even an Indian company would have, ensuring that we can concentrate on the business and the continent. These are a few things that set us apart, and we have got to the scale where there is nobody in the market even a fourth of our size. Once one gets to a particular level, the scale and the processes that have been built rigorously enable delivery of the highest standard of service in the most cost-efficient manner.”
EXTRACTING VALUEWritten by:Nye Longman Produced by: A. Munatswa
EXTRACTING VALUEWritten by:Nye Longman Produced by: A. Munatswa
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MINERAL DEPOSITS (GCO)
Despite only being operational since the middle of 2014, Mineral Deposits’ Grand Côte Operations (GCO) in Senegal has
already proved to the industry that a mining outfit can operate a profitable and productive business while making a positive impact in a developing country. In recognition of its formidable achievements thus far, GCO received an exclusive invitation to accompany the Senegalese government to last year’s COP21 conference – a well-deserved honour, as we shall explore.
Operations Listed on the Australian Stock Exchange, Mineral Deposits Limited (MDL) is specialised in mining, integrating, and transforming mineral sands. In partnership with French company Eramet, MDL owns 50 percent of the TiZir joint venture, which consists of the Grande Côte
How Mineral Deposits Limited is using its scale for good while maintaining an efficient, profitable mineral sands operation in Senegal
www.minera ldepos i ts .com.au 6 1
M I N I N G
operation in Senegal, supported by a titanium and iron ilmenite upgrading facility (TTI) in Norway, enabling the extraction and subsequent smelting of mineral sands in a single operation.
Senegal’s Grand Cote Operations span over 445 square kilometres; the orebody present in this region is primarily made up of zircon and ilmenite, but also contains some high value co-products in the form of rutile and leucoxene. With an expected lifetime of just under 30 years (not counting some additional resources), the mine is set to be profitable for all involved if the correct strategy is adopted.
GCO CEO Daniel Marini explains: “The operation covers a very large area, however due to the nature of the deposit we need to maintain a very elevated throughput; this achievement owes a lot to operating the largest dredge in the world.”
A series of unique pumps supports this
Number of jobs to be supported
by Mineral Deposits
800
MINERAL DEPOSITS
ABB is one of the pioneers in developing drives, motors and PLCs for a variety of mining applications from trucks, crushers, grinders, hoists, drills and excavators through to pumps, fans, compressors and conveyors. While ABB’s products and services can help mining companies meet the energy efficiency regulatory requirements, the added bonus is reduced maintenance costs, improved productivity and higher efficiencies across all mining applications. To unearth the benefits for your mine, visit www.abb.com/mining
Unearth a productivity gold mine without having to dig deep.
YOUR CAT DEALER IN WEST AFRICAEver closer to support you ever further
VISIT US ON JADELMAS.COM
THE EXPERTISE OF OUR TEAMSTHE STRENGTH OF OUR NETWORKBENINBURKINA FASOCÔTE D’IVOIREGAMBIA
GUINEAGUINEA BISSAULIBERIAMALI
MAURITANIANIGERSENEGALTOGO
OUR SCOPE OF OPERATIONS · Mines & Quarries· Construction & Forestry· Power Systems· Industrial Equipment
OUR EXPERTISE · Training· Maintenance Contracts· Technical Consulting & Support · Used & Rental Equipment· New Technologies
MINERAL DEPOSITS M I N I N G
www.minera ldepos i ts .com.au 6 3
exceptional piece of equipment that moves the extracted ore to a floating wet concentrator plant which separates the mineral deposits from the surrounding sand. The resulting product is then driven to a dedicated mineral separation plant – once fully processed at the mineral sand process plant, the mineral sand travels via rail to GCO’s dedicated dock at the Port of Dakar.
Marini explains how a range of control measures certify that the minerals GCO ships are of the highest quality: “We have a laboratory operated by a technician with a Masters in Chemistry who takes hundreds of samples every single day. This ensures our product is free from pollutants and is up to international standards.”
Strategy GCO’s scientific approach goes far beyond geology, hydrogeology, and metallurgy involved in mineral grading – every aspect of its operations is calculated to deliver the most value - from shareholders to the surrounding communities. Even Marini’s appointment as CEO just over a year ago was a decision based on his broad professional experience and technical capabilities.
He says: “I earned a PhD in Geology and in Mining. I worked for the UN DP in Djibouti as a geologist and hydrogeologist. I also worked on a World Bank project in North Cameroon surveying over 400 villages for water, as well as in several executive roles ( as
“The Senegalese government is keen to help those looking to develop industrial operations in the country - they want to have a mining industry and are prepared to make mining into a profitable business” – Daniel Marini, CEO
MINERAL DEPOSITS (GCO)
geologist, mining engineer and metallurgist) for mining companies part of Eramet Group.
Operating a successful business in Africa does not come without its challenges but, as Marini explains, the government of Senegal (which owns a 10 percent stake in GCO) has proved to be a strong asset to its operations: “The Senegalese government is keen to help to those looking to develop industrial operations in the country - they want to have a mining industry and are prepared to make mining into a profitable business.
“When we needed to speak to a government official, their doors were always open – perhaps
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M I N I N G
more so than in other African countries. There’s a level of respect, not solely from ministers, but from the people living near our operations as well. Senegal is a country with a culture of education and has a wealth of skilled individuals.”
He adds that GCO recently hired an external auditor to examine the entirety of its supply chain operations in order to find savings and promote efficiency. While this is yet to be fully completed, it is increasingly likely that the company will be looking to simplify its logistics operations, enabling it to work with a smaller number of providers and therefore streamline many of its processes. Like many other mining companies faced by the fall in commodity prices, GCO has engaged in a process of optimising all of these costs.
Positive impactFar from ignoring its role as a key employer in the Grande Cote region, GCO has made a number
MINERAL DEPOSITS (GCO)
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of commitments which will ensure its successful operations benefit both its employees – a mixture of locals and expatriates – and the communities touched by its work. Taking into account the relatively long life-span of the mine, the company has worked hard to make sure that its CSR work leaves a lasting, long-term impact.
Marini expands: “We have the potential to make a huge impact – out of the 800 people we employ, 740 of them are locals; our operations, directly and indirectly, are responsible for employing a total of 2,000 people. Alongside the training we provide on-site, we also take the brightest local people and give them top professional training across numerous European institutions.”
GCO also left a permanent mark on the area by constructing a resettlement village for the local people; where there were once temporary structures, now stand concrete buildings, supplied with running water and powered by solar panels.
With these initiatives, the company seeks to develop local economies and prove to the entire industry that ethical extraction is very much within reach. By challenging itself to do as much as it possibly can for local communities, it is not only improving living standards but also playing a major role in fostering Senegal’s local extraction talent pool. Furthermore, GCO is showing that Senegal is a country with healthy business opportunities and an environment that is investment-friendly.
The benchmark in agricultural
machinery conveyance.
AGRITRANSServing the Southern African
Agricultural Industry
T: +27 58 813 1303 • F: +27 86 689 7623
www.agritrans.co.za
