African Review April 2016

Building businessat bauma

TransformingMobile MoneyMarkets inGhana

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Europe 10, Ghana C1.8, Kenya Ksh200, Nigeria N330, South Africa R25, UK 7, USA $12

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Energy:Sebastien Kadio-Morokro,D-G at Ptro Ivoire P48

Logistics:Mezzanine floors to addwarehouse capacity P42

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51 yearsServing business in Africa since 1964

BuyersGuide

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Our vision is to buildregional networks inFrancophone andAnglophone West Africa

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African Review

of Business and TechnologyApril 2016

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RENTALPOWERGENERATOR SETSLIGHTING TOWERS

Diesel&Gas

VISIT US AT

OUTDOOR STAND

56A.4INDOOR STAND

A6.301

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UP FRONT

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REGULARS

FEATURES22 Business, Finance and Technology

Networking opportunities at AB7 and SAITEX; Africas integration into global productionnetworks; product-centric banking; and transforming West Africa's financial services

35 TransportReporting on the 4th Africa Airport Expansion Summit; Global NCAPs plans for automotivesafety; The next generation of maritime technology; collaborative robotics technology forlogistics; awards for warehousing at LogiMAT; and how mezzanine flooring can ensure that a company can increase capacity cost-eectively

43 Environment and EnergyGhanaian wastewater management; pump monitoring technology to improve waterdistribution; and services and networking at Oil & Gas Africa

48 PowerPtro Ivoire director-general Sebastien Kadio-Morokro on petrol and gas distribution in CtedIvoire; how big data can help reduce electricity consumption; rope access services for utilitymaintenance; equity players in sustainable power solutions; gas engines in Cameroon; rentingtemporary power solutions; the annual African Review Genset Buyers Guide; the growth indiesel generator markets; and power generation in West Africa

88 Construction and MiningComparing the Volvo L120Gz wheel loader to its competition; concrete for quarrying in EastAfrica; and the worlds biggest showcase of construction and mining equipment and services at bauma

04 Agenda: Developments at allpoints of the compass

16 Bulletin: News flashes for Africanprofessionals

100 Solutions: Equipment and servicesto source for industry

Contents



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Editors Note

Cover picture: ITB Tower, which is underconstruction in the Eko Atlantic development oVictoria Island, Lagos, on newly reclaimed landfrom the Atlantic Ocean.Inset, bottom left: Stephen Williams

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This issue of African Review looks forward to the business and networking opportunities at twokey South African trade shows, AB7 and SAITEX, previewed on page 22. There follows anassessment of Africas integration into global value chains from page 24 to 28, with reports onbanking technology and mobile financial services in West Africa on pages 30 to 34. Developmentsin transport and logistics are covered on pages 35 to 42, with environmental technology exploredon pages 43 and 44, and energy sector prospects at Oil & Gas Africa on page 46.The power section begins on page 48 with an interview with Ptro Ivoire director-generalSebastien Kadio-Morokro, who discusses petrol and gas distribution in Cte dIvoire. Reports ontechnology and maintenance at utilities follow on pages 50 and 52. This issue then oers insightsinto renewable energy on pages 55-56. Articles appraising the design and use of diesel generatorsfollow on pages 57 to 84, with the annual African Review Genset Buyers Guide on pages 66 to 83.Reports from the construction and mining sectors include a comparative assessment of VolvosL120Gz wheel loader on pages 88 and 89, an article on concrete for quarrying in East Africa onpages 90 and 91, and an extensive preview of bauma 2016, the worlds largest showcase ofconstruction and mining machinery, from page 93 to 98.

Dr Andrew Croft, Editor

African Review of Business and Technology - April 2016

Audit Bureau of Circulations -Business Magazines


Editor: Andrew [email protected]

Editorial and Design team: Bob AdamsPrashant AP, Hiriyti Bairu, Sejal Bhat, Miriam Brtkova, Ranganath GS , Georgia Lewis,Rhonita Patnaik , Zsa Tebbit , Nicky Valsamakis,Louise Waters and Ben Watts

Publisher: Nick Fordham

Publishing Director: Pallavi Pandey

Magazine Manager: Richard RozelaarTel: +44 207 834 7676 Fax: +44 20 7973 0076 Email: [email protected]

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UAE: Rakesh PuthuvathTel: +971 4 448 9260 Fax: +971 4 448 9261Email: [email protected]: Steve ThomasTel: +44 20 7834 7676 Fax: +44 20 7973 0076Email: [email protected]: Michael TomashefskyTel: +1 203 226 2882 Fax: +1 203 226 7447Email: [email protected]

Head Oce: Alain Charles Publishing Ltd, University House,11-13 Lower Grosvenor Place,London SW1W 0EX, United KingdomTel: +44 20 7834 7676, Fax: +44 (0)20 7973 0076 Middle East Regional Oce: Alain Charles Middle East FZ-LLC, Oce 215,Loft No 2/A, PO Box 502207, Dubai Media City,UAE, Tel: +971 4 448 9260, Fax: +971 4 448 9261Production:Kavya J, Nikitha Jain, Nathanielle Kumar, Nelly Mendes, P Parimita Barik and Sophia PintoE-mail: [email protected]: [email protected]

Chairman: Derek FordhamPrinted by: Buxton Press Printed in: April 2016US Mailing Agent: African Review of Business & Technology, USPS. No. 390-890 is published 11 times a year for US$140 per year byAlain Charles Publishing, University House, 11-13 LowerGrosvenor Place, London SW1W 0EX, UK. Peridicals postage paidat Rahway, New Jersey. Postmaster: send address corrections toAlain Charles Publishing Ltd, c/o Mercury Airfreight InternationalLtd, 365 Blair Rd, Avenel, NJ 07001.

ISSN: 0954 6782

Serving the world of business

S01 ATR April 2016 Start_Layout 1 24/03/2016 17:08 Page 3

4NEWS

A new training academy in Settat is being actively assisted with financial, technical andequipment support provided by Volvo Group. As part of a programme to support thedevelopment of vocational training schools in Africa, the training school aims to provide a modern facility that will become a center of excellence in developing skills forindustrial applications.

The newly-built academy is based on an 84 hectare campus in Settat, some 60km fromCasablanca, and features training workshops, halls of residence, classrooms, auditorium andrestaurant. Such is the importance given to boosting the countrys skills gap, the school had thehonour of being formally inaugurated by the king of Morroco, His Majesty King Mohammed VI.

The Volvo-supported project will provide technician training to 150 students from Morocco,Senegal and Ivory Coast annually on a wide range of construction equipment, and forms part ofthe schools objective to train up to 2,000 students a year. In Morocco, Volvo is joined on theproject by fellow partner USAID, United Nations Industrial Development Organisation(UNIDO), the Government of Morocco and the foundation of the countrys largest miningcompany, OCP Foundation.

As the private sector expert who understands better than most the limitations in the jobsmarket, Volvo is expected to help develop the curriculum, train the trainers and providetechnical assistance and training equipment. (It has provided both electrical and hydraulicbenches.) Also, as Volvo and its implementation partner UNIDO have experience of a very similarproject in Ethiopia, Volvo can help define skills training best practices in developing countries.

To date, Volvo has provided a D7 engine, a D16 engine and sundry other equipment,including tools and components as well as advice on the development of the curriculum andaccess for the schools teachers to Volvo on-line training material. Volvo is about to deliver 14engines for the school in the near future. The school has also bought six Volvo machines,including a paver, hauler and graders.

As the local dealer, we at Volvo Maroc will provide practical support and assistance to theschool and students, with regard to site visits, access to our workshops and securing workplacements with suitable Moroccan companies, said Tim Richardson, general manager of VolvoMarocs Construction Equipment Division.

Dr Salah Khebri introducesAlgerian energy initiativeat NAPEC


Agenda / NorthVolvo invests in Moroccan training


Recently held in Algiers, the 6th NorthAfrican Petroleum Exhibition andConferences (NAPEC) was attended byunprecedented numbers of industryprofessionals, representing 400 companiesfrom 28 countries.

NAPEC is the largest North African oil andgas exhibition and conference. The 2016event drew speakers from the highestechelons of government, operators, serviceproviders, advisory and research firms and academia.

Delegates heard from Algerian EnergyMinister Dr Salah Khebri on Algeria'spriorities in the upstream and downstreamsector, on plans for exploration in previouslyunsurveyed areas, expansion of reservesand production, and two new refineries dueto come on-stream by 2020. Other keynotespeakers addressed important issues facingAlgeria and the international oil & gasmarket.

Sonatrach CEO Amine Mazouzi said,NAPEC is an important platform andopportunity to create links and partnershipswith business.

Sonatrach experts addressed thedelegates on a variety of topics including:petroleum at a time of financial andeconomic change, Sonatrachs research anddevelopment activities, liquified natural gasin Algeria and Sonatrachs programme tocut greenhouse gas emissions.

NAPEC organiser Djafar Yacini observed,Sonatrach contributed greatly to thesuccess of the event together with thespecialist speakers and those companiesthat have exhibited, and of course theindustry professionals that attended.

Algerian Energy Minister Dr Salah Khebriopened NAPEC and used the event toannounce Algeria's new energy objective

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ANGOLAAuto Maquinaria+ 244 9 2782 4434

BENINSMT Benin+ 229 21 35 14 02

BOTSWANABabcock International Group+ 267 316 3200

BURKINA FASOSMT Burkina Faso+ 226 66 77 01 01

BURUNDISMT Burundi+ 32 10 47 61 20

CAMEROONSMT Cameroun+ 237 99 41 40 30

CONGOSMT Congo+ 242 06 508 27 13

CTE DIVOIRESMT Cte dIvoire+ 225 21 75 16 27

DEM. REP. OF CONGOSMT D. R. Congo+ 243 815 656 565

EGYPTGhabbour+ 20 242 107 794

ETHIOPIAEquatorial Business Group+ 251 11 442 4955

GABONSMT Gabon+ 241 07 515 008

GHANASMT Ghana+ 233 30 268 33 51

KENYA Auto Sueco Ltd+ 254 727 534 593

LIBERIASMT Liberia+ 231 888 071 000

LIBYAUnited Group+ 218 21 7313310

MADAGASCARMaterauto+ 261 20 22 233 39

MALISMT Mali+ 32 10 47 61 20

MAURITANIASMT Mauritania+ 32 10 47 61 20

MAURITIUSLeal Equipements Compagnie+ 230 207 2100

MOROCCOVolvo Maroc S.A.+ 212 522 764 800

MOZAMBIQUEBabcock International Group+ 258 84 2652397

NAMIBIABabcock International Group+ 264 81 6937473

NIGERIASMT Nigeria+ 234 802 3747678

RWANDASMT Rwanda+ 32 10 47 61 24

SENEGALSMT Senegal+ 32 10 47 61 20

SEYCHELLESLeal Equipements Compagnie+ 230 207 2100

SIERRA LEONEA. Yazbeck and Sons Ltd+ 232 7730 3042

SOUTH AFRICABabcock International Group+ 27 11 230 7300

SUDANAlbarajoub Engineering Co.+ 249 183 77 84 13

TANZANIAAuto Sueco Ltd+ 255 222 866 333

TOGOSMT Togo+ 228 99 99 92 15

TUNISIANordic Machinery+ 216 71 409 260

UGANDA Auto Sueco Ltd+ 256 791 500 400

ZAMBIABabcock International Group+ 260 212 216 200

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The rise in a number of big infrastructure projects boosted by thehigh levels of public and private investments in roads, power plants,commercial construction and property development are expected toincrease the demand for cement in Uganda at a faster rate of 13percent annually - outpacing the nations GDP of seven per cent andthe national electricity demand at ten per cent in the years ahead.

According to Hima Cement, a subsidiary of Bamburi CementLimited, which itself is owned by Lafarge, companies are strategicallypositioned to meet demands arising from the construction boom inUganda. Indeed, Hima Cement recently launched its Bulk Cementdelivery service, which oers contractors a more ecient mode ofreceiving cement at their construction sites thus reducing logisticscosts associated with handling bagged cement.

"This mode of delivering cement is the standard practice indeveloped countries. Uganda is on a rapid growth path and as a keyplayer, we are ready to meet the demands in this market. We areevolving from being a producer of cement only, to a partner forsolutions," noted Daniel Pettersson, Hima Cement Country CEO.

Each truck has a capacity to transport 28 to 32 tons of cementwhich implies a cleaner environment and faster completion ofprojects as less time is spent loading, unloading and emptying thecement from bags. This will also save contractors from pilfering andtearing losses.

In 2010, the company made a significant investment to increaseproduction capacity to 850,000 tons annually when it commissioneda new production line worth US$120mn with adequate installedcapacity to meet the growing demand. The new line increasedproduction capacity from 350,000 tons to 850,000 tons per year and

has helped to move Uganda to self-suciency in addition tofacilitating supply of quality cement to the entire East African market.

Hima Cement produces a range of packed and bulk products thatmeet the requirements of many dierent types of application andmentions PowerMAX 42,5 which is a premium cement that combinesexcellent strength performance at all ages with versatility andenhanced durability benefits and combines high technicalperformance for large projects with all round versatility for the smalluser. It is also used for ordinary constructions, foundation works andsoil stabilisation. Another type of cement, PowerPLUS 42,5 N, locallyknown as Ordinary Portland Cement, is utilised very eciently inmedium to large construction projects to optimise performance.

Structural applications/reinforced concrete for the cement includehigh rise buildings and structures, bridges, fast track constructionprojects, spun pipe manufacturing, foundations, pre-castmanufacturing and post-tensioning and pre-stressing slabs andbeams among others.

Georey Muleme

6

NEWS

Representing growth in Mozambican extractive industries at MMEC


Agenda / EastDemand for cement expected to increase in Uganda


The bi-annual international strategicconference on Mozambique Mining, Oil &Gas, and Energy sector (MMEC) has becomeestablished as the leading strategicconference on Mozambiques extractiveindustry since the inaugural event in 2008.

Organised by AME Trade Ltd in associationwith ENH and AGMM, MMEC is a uniqueplatform designed for networking with policymakers, investors, and experts inMozambiques mining, oil & gas and powergeneration sectors. This year the fifth MMECwill again allow access to an unrivalledselection of interrelated topics under one roof.

The event will feature the long-establishedMMEC expo which will provide a platform forcompanies and organisations to market theirgoods & services in Mozambique. Taking place

this year on 27-29 April, MMEChas previouslyattracted 60 exhibitors and 600 participantsfrom 32 countries, and sponsorship from keyindustry players including Anadarko, Sasol,Matola Gas Company SA, ExxonMobil andStandard Bank.

Organised under the theme of 'Connectinginvestors, policy makers and industry leadersto drive economic & social development inMozambique', the conference will feature over40 presentations covering mining, oil & gas,and power sectors, as well as paneldiscussions addressing skills development,regulatory developments, anticipated localcontent policies, and other related issues.

Speakers at this year's event include: James M Hughes, country manager, Fluor

Mozambique.

James Shepherd, managing director,Southern and East Africa, Aggreko.

Isaque Chande, commissioner, CNELECNational Council for Electricity.

Pedro Pinto, partner, African Century RealEstate.

Paul Eardley-Taylor, head of oil and gasSouthern Africa, Standard Bank.

Johan de Vos, MD, Gigawatt MoambiqueSA and Chairman, Matola Gas Company.

Barbara Mommen, chief executive ocer,Maputo Corridor Logistics Initiative.

Dr Miquelina Menezes, chief executiveocer, Funae.

Miguel Barreto, chief executive ocer,Gesto Italia.

Moises Machava, head of engineering andmaintenance, Hidroelctrica Cahora Bassa.

Hima Cement is a Lafarge subsidiary company


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8

NEWS

Equipment supplier to Southern African oil and gas industries, Energas Technologies recentlyexhibited at the Africa Energy Indaba in partnership with its supplier, Turboden, a developer and producer of ORC (Organic Rankine Cycle) turbogenerators. Energas Technologies sought to connect with the suppliers, decision-makers and key roleplayers in Africas energy sector brought together at Afria Energy Indaba.The event was a great success for both Energas Technologies and Turboden, remarked LaetitiaBotha, Energas Technologies product engineer.Partnering with Turboden, European specialist in turbogenerators, Energas was able tohighlight the benefits of its innovative and reliable energy solutions for industry in greaterdepth. Comments Botha, This partnership was important for us, because we wanted to bringTurbodens ORC turbogenerator solutions, which have great potential in harnessing Africaswaste energy, right under the view of our existing and potential customers at the event.With a chronic shortage of electricity in Africa, a developing continent whose energyrequirements are set only to increase as infrastructure demands grow, a number of visitors tothe Energas Technologies booth showed a keen interest in energy generation and recovery inthe South African and wider African contexts.Botha commented, Africa boasts significant natural resources, such as gas, minerals andtimber, which have great potential for energy production, and while many people are aware ofthis, creating or recovering energy from these resources is a challenge for most.

The Adfil Construction Fibre division of UK-based Low & Bonar Group is partnering withconcrete and cement admixtures andancillary products supplier Chryso SouthernAfrica in order to achieve growth for its fibrebusiness into Africa. Many countries in Africa have hugeinfrastructure programmes to build roads,water systems and power stations to meetthe demands of the worlds second mostpopulous continent. Adfil recognises thegrowth opportunities and chose Chryso as itspreferred partner with the view to increaseour fibre market share in Africa, Mark

Mitchell, technical sales manager for AdfilFibres, said. Adfil has almost three decades ofexperience in the development, productionand distribution of fibres in over 60 countries.

Nautic Africa secures Citranscontract

Africa Energy Indaba was a great success for Energas Technologies


Agenda / SouthEnergas exhibits at Energy Indaba

Adfil backs Chryso for fibre sales


South African shipbuilder Nautic Africahas signed a significant agreementwith Citrans to build the first ferries in aseries of vessels for the Ivory Coast worthR347mn (US$22.6mn). The deal forms partof a Presidential infrastructure project thataims to reduce urban congestion inAbidjan.Phase one of the project, which willdeliver 18 vessels by September 2016,highlights Nautics ability to design andbuild to the specific requirements of theinternational market. A focus on vesselstability, comfort and competitive costinghas resulted in a twin-hulled designconcept for the newbuilds.

Due to operate in shallow inland waters,the 27m long ferries are designed with a maximum water draft of just 1m and airdraft of 4m. The catamaran-styled vesseldesign is guided by the InternationalAssociation of Classification Societies(IACS) rules to keep passengers safe and comfortable.

With operating speeds of up to 12 knots,the ferries will be fitted with variousseating arrangements in 200-seater and240-seater versions. Configurations foreconomy as well as business class seatingwill see some of the vessels catering eitherfor business or economy class completelyor for a varying percentage of both.

Highlighting the importance of safety invessels focused on passenger transport,Nautic confirms that each vessel is to bedelivered with life saving safetyequipment as well as a variety of alarmsand sensors. Passenger comfort is ensuredwith toilets and air conditioningthroughout the vessels. In addition, fourboarding ramps provide quick andefficient access onto and off the vessel.

The ferries will benefit from Nauticscommitment to building to the highestspecifications using the latest technologyfor an end product that is efficient androbust to ensure an extended service life.

Chryso will distribute Adfils micro fibres and macrofibres, and manage a concrete slab design programme


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A Powerful Partnership3.2 gigawatts supplied to Africa over decades

TTyTypTyp Typ 7Typ 75Typ 75 Typ 75 -Typ 75 - Typ 75 - ATyp 75 - A Typ 75 - A PTyp 75 - A PoTyp 75 - A PowTyp 75 - A PoweTyp 75 - A PowerTyp 75 - A PowerfTyp 75 - A PowerfuTyp 75 - A PowerfulTyp 75 - A Powerful Typ 75 - A Powerful PTyp 75 - A Powerful PaTyp 75 - A Powerful ParTyp 75 - A Powerful PartTyp 75 - A Powerful PartnTyp 75 - A Powerful PartneTyp 75 - A Powerful PartnerTyp 75 - A Powerful PartnersTyp 75 - A Powerful PartnershTyp 75 - A Powerful PartnershiTyp 75 - A Powerful PartnershipTyp 75 - A Powerful Partnership Typ 75 - A Powerful Partnership (Typ 75 - A Powerful Partnership (ATyp 75 - A Powerful Partnership (AfTyp 75 - A Powerful Partnership (AfrTyp 75 - A Powerful Partnership (AfriTyp 75 - A Powerful Partnership (AfricTyp 75 - A Powerful Partnership (AfricaTyp 75 - A Powerful Partnership (Africa)Typ 75 - A Powerful Partnership (Africa) Typ 75 - A Powerful Partnership (Africa) -Typ 75 - A Powerful Partnership (Africa) - Typ 75 - A Powerful Partnership (Africa) - 2Typ 75 - A Powerful Partnership (Africa) - 20Typ 75 - A Powerful Partnership (Africa) - 208Typ 75 - A Powerful Partnership (Africa) - 208xTyp 75 - A Powerful Partnership (Africa) - 208x2Typ 75 - A Powerful Partnership (Africa) - 208x29Typ 75 - A Powerful Partnership (Africa) - 208x292Typ 75 - A Powerful Partnership (Africa) - 208x292.Typ 75 - A Powerful Partnership (Africa) - 208x292.iTyp 75 - A Powerful Partnership (Africa) - 208x292.inTyp 75 - A Powerful Partnership (Africa) - 208x292.indTyp 75 - A Powerful Partnership (Africa) - 208x292.inddTyp 75 - A Powerful Partnership (Africa) - 208x292.indd Typ 75 - A Powerful Partnership (Africa) - 208x292.indd Typ 75 - A Powerful Partnership (Africa) - 208x292.indd Typ 75 - A Powerful Partnership (Africa) - 208x292.indd 1 22020120152015-2015-02015-092015-09-2015-09-12015-09-142015-09-14 2015-09-14 2015-09-14 2015-09-14 12015-09-14 162015-09-14 16:2015-09-14 16:12015-09-14 16:182015-09-14 16:18:2015-09-14 16:18:42015-09-14 16:18:45 16:18:45


10

NEWS

Insurance policy holders in Africa can nowexpect greater gains in their portfolios in thecoming years, according to African privateequity fund management firm AFIG Funds.This as financial institutions such as bankersand private equity players continue toengage African insurers with ambitiousgrowth strategies for insurance at the annualJourne de la Finance.

The event, now in its fifth edition, washeld in Abidjan, Cte dIvoire, with the goalof increasing partnerships and synergiesbetween financial and insurance institutions.Over 194 companies from 29 countries inNorth and Sub-Saharan Africa were presentto listen to finance and insurance industryleaders from across the region.

"With over US$50bn of collectedpremiums each year across the continent,and unprecedented year-on-year growth, itis important that African insurers think morestrategically at where they invest theirportfolios," said Papa Madiaw Ndiaye,founder and CEO of AFIG Funds.

The annual daylong event was thebrainchild of AFIG Funds, and theFederation of African InsuranceCompanies (FANAF). The inaugural eventtook place in 2010, in Kinshasa, DemocraticRepublic of Congo, with the goal ofimproving the insurance industry's

investment portfolios. The event is heldannually as part of FANAF's weeklonggeneral assembly, which gathers more than1,000 participants every year. This year'sJourne de la Finance featured the CEO ofBRVM, Edoh Kossi Amenounve, and thegroup MD of NSIA, Janine Be?ne?dicteDiagou, as well as representatives from theAfrican Development Bank, AgenceUMOA Titres, AXA Mansard, Bank ofAfrica, Deloitte, Ecobank, and GroupSUNU Assurances. Also present were CIMA,the sector regulator, as well as leaders oftomorrow such as the CEO of Quick Cash,and an astute observer of and activeparticipant in the continent's economy, EricKacou, who challenged the audience onwhat the growth and the emergence of thecontinent mean.

"At present, the portfolios of Africaninsurers are essentially made up of realestate investments, term deposits and lowyield debt securities. These can either bepotentially risky or produce low yields," saidMonira Diallo, investment manager at AFIGFunds. "The result is an industry whererevenues are increasing but profits are not. A shift to diversify their investmentstrategies into public markets andalternative assets is key to sustainedgrowth."

The first global forum for science on African soil has taken place in Dakar, Senegal, with a globalcall for support for Africas scientific and technological emergence. The Next Einstein Forum(NEF) brought together leaders in industry, policy, science, and technology. The first edition ofthis biennial event set the stage for a vibrant conversation on transforming Africa and theworld through a renewed and increased focus on science, technology and innovation.The NEF is an initiative of the African Institute for Mathematical Sciences (AIMS) inpartnership with Robert Bosch Stiftung.

A great idea can come from anywhere in the world, and there is no doubt that new andnovel scientific ideas to solve global health challenges will come from Africa., said SeemaKumar, vice president, innovation, global health and science policy at Johnson & Johnson, anda member of the NEF International Steering Committee.

Visa expands footprint inFrancophone Africa


Agenda / WestAfrica's insurers speak at the annualJourne de la Finance

Calls for progress in tech, science


Payment company Visa is preparing toopen an oce in Cte d'Ivoire toreinforce its position as a leading paymentstechnology company and to help bringingthe benefits of electronic payments to theeconomy and a broader range of consumersand merchants across the region.

Visa is currently in the process to finalisingthe procedures leading to the opening of itsoce in Cte d'Ivoire. This will facilitate theengagement with key stakeholders in theregion; government, financial institutions, consumers and merchants in theECOWAS region.

This important development will help drivethe company strategy in Africa where twobillion people live without access to financialservices, according to the Global FinancialInclusion Index 2014. The expansion signalscontinued eorts by Visa to drive itsundertaking with the World Bank Group toachieve universal financial access andproviding electronic payment accounts to500mn underserved people by end of 2020.

HE Kon Adama, Ivorian Minister ofFinance, expressed his support to plansshared by Visa and said, This is indeed greatnews, it will help Cte d'Ivoire in itsendeavors to promote electronic payments inthe country and drive financial inclusion tothe benefit of the overall economy.

HE Jean-Louis Billon, the nations Ministerof Commerce, indicated, This is encouragingnews for 2016, Cte d'Ivoire is currentlyexerting significant eorts in attractingforeign direct investments and facilitatecommerce and electronic payment will helpin increasing the transparency of theeconomy to that end. Visa is welcome to the region.

HE Roger Kacou, Minister of Tourism, said,We are pleased with the plans shared by Visaand it will definitely help in attracting touriststo visit Cte d'Ivoire and we look forward toour partnership with Visa to executecampaigns that would result in thepromotion of the country as a destination ofchoice for tourists.


S03 ATR April 2016 Bulletin_Layout 1 24/03/2016 15:01 Page 12

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NEWS

May4-6Southern Africa Energy andInfrastructure Summit (SAEIS)Maputo, Mozambiquewww.Southern-Africa-Summit.com

5-6Africa Financial ServicesInvestment ConferenceLondon, UKwww.afsic.net

6-8Next Generation Oil & GasAccra, Ghanawww.gdsinternational.com

7-9IndabaDurban, South Africawww.indabasouthafrica.co.za

9-11Africa ConstructionJohannesburg, South Africawww.constructionweek.com

11-13Networks, Computers andCommunicationsHammamet, Tunisiaisnccconf.org

11-13World Economic Forum on AfricaKigali, Rwandawww.weforum.org

12-14Oil & Gas AfricaNairobi, Kenyawww.expogr.com

12-14Power & Energy AfricaNairobi, Kenyawww.expogr.com

17-19African Utility WeekCape Town, South Africawww.africanutilityweek.com

18-20IndusmachNairobi, Kenyawww.expogr.com

23-26Design East AfricaDubai, UAEwww.indexexhibition.com

24-25IOTASJohannesburg, South Africawww.iotafricasummit.net

24-26A-OSHJohannesburg, South Africawww.aosh.co.za

24-26SecurexJohannesburg, South Africasecurex.co.za

26-28SemicaOuagadougou, Burkina Fasowww.semica.net

30 May-3 JunIFATMunich, Germanywww.ifat.de

Events / 2016

Leading event company dmg events has acquired long-establishedpan-African exhibition organiser Exhibition Management Services PtyLtd (EMS) headquartered in Johannesburg, South Africa. dmg eventsis a wholly-owned subsidiary of the Daily Mail & General Trust plc, aninternational portfolio of digital, information, media and events businesses.

Geo Dickinson, CEO of dmg events, said, This acquisition is part ofour strategy to become key event players in Africa. EMS oers a strategichub in Africas largest economy.

EMS adds five shows to the existing portfolio of dmg events: SAITEX A non-food retail products exhibition. Africas Big Seven (AB7) The continents biggest food and

beverage industry trade expo. WAMPEX Mining and power, machinery and technology, Ghana. INDUTEC Industrial design and manufacturing expo. CIS An industry showcase in Cape Town, covering the oil & gas,

marine and oshore, logistics and temperature controlledwarehousing sectors together with relevant small business suppliers.

dmg events now operates 12 events across the continent, includingconstruction and interiors in Morocco, oil and gas in Egypt, construction

and coatings in Kenya, and the Global African Investment Summit thattakes place in London, UK, and in Kigali, Rwanda.

The Johannesburg-based company will change its name to dmg EMSAfrica, reporting to dmg events Middle East, Asia and Africa divisionthat operates some of the largest exhibitions in the region. These includeThe Big 5 series of construction events, INDEX the interiors event inDubai, and The Hotel Show the Middle Easts biggest Hotel andHospitality event.

Matt Denton, president of dmg events Middle East, Asia & Africa,said, The team and I are excited about the events and opportunitiesthat this acquisition opens to us in Africa. We can build significantly onthe existing successful EMS events and already have plans to grow thebusiness with fresh launches supported from our new Johannesburg hub.

John Thomson owner and founder of EMS in 1981 said, dmg eventswith its extensive portfolio of events, international networks and financial resources is the ideal organisation to further develop andexpand upon the portfolio of exhibitions that we have established over35 years in Africa.

The sale was brokered by Mayfield Media Strategies, specialist brokersfor the global exhibitions sector.

dmg events acquires Exhibition Management Services (Pty) Ltd South Africa

African Review of Business and Technology - April 2016 www.africanreview.com


7:01 PM


16

NEWS

Bulletin / EnergyRepublic of Djibouti ready towork on mega gas project His Excellency President Ismal Omar Guelleh

of the Republic of Djibouti has presided over

the foundation stone laying ceremony for a

new mega gas project, which comprises a

natural gas pipeline, a liquefaction plant and

an export terminal at Damerjog, Djibouti,

which will enable Ethiopia to export gas to

China and support regional socio-economic

development; with project funding by

Chinese firm POLY-GCL Petroleum Group

Holdings Ltd, the 700km pipeline will

transport up to 12bn cubic metres of natural

gas a year from Ethiopia to Djibouti, and the

liquefaction plant will have capacity to

produce up to 10mn tons of liquefied natural

gas (LNG) per year after completion of the

project.

Improving investment inMozambican energyGigawatt Mozambique has announced a

US$200mn investment into Mozambiques

power sector, alongside several global

stakeholders including Standard Bank and

the World Bank, amongst many others, to

assist in harnessing Mozambiques natural-

gas resources, which will further benefit

many of Mozambiques neighbours in

southern Africa; this - along with several

other projects in the region - is presented

and discussed at EnergyNets 2016 Southern

Africa Energy and Infrastructure Summit

(SAEIS), taking place in Maputo,

Mozambique, 4-6 May, as part of a

celebration of regional co-operation, and

promotion of energy and infrastructure

projects require both private- and public-

sector support in order to be realised.

KPMG leads on renewabledialogue with SAICE and SAREC Industry consultants at KPMG recently

demonstrated fresh commitment to

promoting South Africas renewable energy

sector, in collaboration with South African

stable energy future, recognising the

potential and growth opportunities the

continent will unlock in the future.

Vanguard enables completionof wind turbines at Nojoli

International heavy-lift, specialised transport

and plant installation company Vanguard

has been awarded the transport and crane

erection contract for the Nojoli Wind Farm

near Cookhouse in the Eastern Cape, once

again showcasing its experience in this sector

and its specialised engineering solutions; the

Nojoli project comprises 44 Vestas V100 2

MW wind turbine generators, which have the

capacity to generate more than 275 GWh per

year or enough for 86,000 South African

households.

Institution of Civil Engineering (SAICE)

Project Management and Construction

Division (PMCD) and the South African

Renewable Energy Council (SAREC), at a

renewable energy seminar, attended by

around 100 delegates; of the seminar,

Malcolm Pautz, KPMGs associate director in

deal advisory infrastructure, said, This was a

critical platform on which we raised

standards, heightened awareness, shared

experiences, and educated all stakeholders

on the various complexities that are

prevalent in the sector.

HopSol selects First Solarmodules for Namibian PV plant Swiss solar developer HopSol AG has

selected First Solar, Inc to supply high

performance thin film modules to power the

Otjozondjupa Solar Park, located near

Grootfontein in Namibia; when completed in

June 2016, the five megawatt (MW)AC facility

will be Namibias largest grid-connected solar

photovoltaic (PV) plant and is expected to

account for approximately one per cent of

the countrys total generation capacity.

Econets Strive Masiyiwa set tospeak at World EnergyCongressThe World Energy Council, which organises

the 23rd World Energy Congress, taking place

in Istanbul, between 9 and 13 October, has

confirmed that Strive Masiyiwa, group

executive chairman and founder of Econet in

South Africa, will speak alongside Wang

Binghua, chairman of State Power

Investment Corporation (SPIC) ofChina,

and Maximus Johnity Ongkili, Minister of

Energy, Green Technology and Water of the

Government of Malaysia; the World Energy

Congress, which gathers senior leaders from

all segments of the energy community and is

attracting speakers with global reputations

from senior figures in politics, business and

academia, will dedicate its fourth day to an

focus on Africa and its role in securing a



17

New power plant covers 15 percent of Senegals electricityconsumption MAN Diesel & Turbo has completed the

construction of a new diesel combined cycle

plant in Tobne in Senegal, 90km north of

Dakar. Designed to operate with five MAN

18V48/60 engines and a MAN MARC steam

turbine, the new power plant has a production

capacity of up to 96 MW. It is the second plant

in Africa to make use of MANs diesel

combined cycle product package. The waste

heat from the engines powers a steam turbine,

which in turn generates 6.6 MW of electricity.

The power plant, which is located in the region

of This, will supply to the national grid that is

operated by Senegals national electricity

company, SENELEC. It will generate the

equivalent of 15 per cent of the country's

current electricity consumption. This electricity

Sami Soughayar, CEO of MATELEC. Our

collaboration with MAN Diesel & Turbo proved

to be highly professional and a great success.

With project teams being perfectly

coordinated, it only took just over 15 months

for the power plant to be able to deliver its first

MW to the Senegalese national grid.

will be used to power businesses, shops,

universities and houses, thus providing a

whole host of new opportunities for growth

within Senegal, which currently experiences

recurring power outages.

The new plant uses our diesel combined cycle

product package, which oers outstanding

performance and excellent environmental

standards. Thanks to the second cycle using a

MARC steam turbine, fuel consumption is

lowered by six per cent and CO2 emissions are

also reduced for any kWh produced, said

Mesut Yentur, CEO of MAN Diesel & Turbo

France and head of power plant sales in the

French-speaking regions of Western Africa.

Thanks to its eective partnership with

MATELEC, a Lebanese company specialising in

electricity infrastructures, MAN has managed

to get the plant commissioned in record time.

We are very happy with this project, says said

The new power plant inTobne will supply electricity

to Senegals national grid

Bulletin / EnergyNEWS

NEW

African Review of Business and Technology - April 2016www.africanreview.com


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NEWS


Djibouti sits at the crossroadsof one of the busiest shippingroutes in the world, linkingEurope, the Far East, the Hornof Africa and the Gulf. It is a natural gateway for Africa,providing sea, air, rail and roadlinks.

Ali Mahmoud Yacoub, Minister ofEnergy, Republic of Djibouti

The true economicempowerment of Africa lies inits capacity to truly engage andcompete on a level playing fieldin the global stage. It isessential for Africa not only tohave access to basic essentialssuch as water and energy butalso connectivity, which willenable the continent to trulycapitalise on the digitalrevolution.

Marco Attisani, chief executive ocer,Watly

Cooperating with Afreximbankis an excellent way for Ecobankto prosecute one of theobjectives of its foundingfathers, which is to contributeto the development of thecontinent.

Ade Ayeyemi, group chief executiveocer, Ecobank

Africas requirement forlogistics services and supplychain expertise is huge andgrowing every day. At the sametime, many of the companiesthat need logistics to enter themarket dont know how to getstarted in Africa or arent willingto take the risk. The market isopen for first movers who can

navigate risk and nurtureAfrican talent. The opportunityis for those seeking to buildlong-term, sustainablebusinesses that bring world-class practices and adapt tolocal conditions.

Georey White, chief executive ocer,Agility Africa

The need for faster, moreaffordable, more available datais driving the increasingdeployment of fibre and highspeed wireless in South Africa.This journey has been a longtime coming, beginning withinter-continental connectionsand then moving on to locallong haul city-to-city andmetros. All of the megatrendsof today, from connected cities,businesses and homes tomobility and the IoT, requirehigh bandwidth availability andsecurity, low latency and strictsynchronisation. In Africa, wehave a significant opportunityto leverage technologicaladvances, as we do not havemassive capital investment intolegacy infrastructure.

Eckart Zollner, business developmentmanager, The Jasco Group

Mining has traditionallyimpacted heavily on land, bothwithin the boundaries of themining operation and insurrounding areas...there is asustainable way to approachmining land rehabilitation whichis cost and environmentconscious.

Robbie Louw, director, PromethiumCarbon

With the move to an onlineworld, businesses need to thinkabout how they will adapt. Thismeans that they need tobecome more agile, access datafor improved decision-makingand interact with stakeholdersin a more personalised manner.

In addition to thinking abouthow they will prepare formobile customers, West Africanorganisations also need to beready for digital employees.Those that do the necessarygroundwork will be in a strongposition to attract, retain, anddevelop the best talent.

Magnus Nmonwu, regional director,Sage West Africa

It is clear that thoseorganisations whose culture isunderpinned by strong valueswill create a workforce willing toengage with new safetyprocesses and will therefore bebest equipped to protect boththeir people and their assets. Ifthese values have beensocialised within the businessand are used by leaders at alllevels in an authentic mannerthen the safety culture in ourindustry will create theresilience it needs.

Mark Walker, client partner, OptimusSeventh Generation

Quotes

Magnus Nmonwu , regional director, Sage West Africa


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A report from Timetrics Construction Intelligence Centre (CIC) hasfound that Nigerias construction industry will continue to expand,with investment in infrastructure construction driving growth.The outlook for the Nigerian construction industry is positive, thereport said. The industrys output value is expected to rise at an annualaverage of more than nine per cent in the next five years, havingposted annual growth close to 12 per cent over the past five years. www.africanreview.com/construction-a-mining

Boost for Nigerias construction industry

The Bokpoort Concentrated Solar Power (CSP) project, launched by aconsortium led by ACWA Power, has been inaugurated in theNorthern Cape Province of South Africa.The US$325.1mn CSP project is expected produce enough power to supply more than 200,000 homes. The formal inauguration of the Bokpoort CSP plant is a significantmilestone in supplying South Africa with reliable and costcompetitive renewable electricity, said ACWA Power Chairman,Mohammad Abunayyan. The success of the project demonstrates arobust partnership between the Government of South Africa,through the Department of Energy, and ACWA Power.www.africanreview.com/energy-a-power

20

WEB SELECTION

CSP project established in South Africa

The Bokpoort CSP plant is expected to supply reliable and cost competitive renewableelectricity. (Photo: Xklaim, via Wikimedia Commons)


African Review/Onthe WebA selection of product innovations and recentservice developments for African business.Full information can be found on www.africanreview.com


Daimler Trucks Asia has begun production of its new Fuso range at theAVA assembly plant in Mombasa. The process of adding the Fuso 2523C heavy-duty truck to the AVAassembly plants portfolio took five months, with further models fromthe range to also be added.www.africanreview.com/transport-a-logistics

Daimler Trucks Asia starts producing Fusovehicles in Kenya


In South Africa, the City of Johannesburg(CoJ) has launched an exciting and far-reaching strategy to establish itself as afood manufacturing and agro-processinghub. The City Authority will integrate itsprocessing operations with the proven intra-Africa networking capabilities of two hugelysuccessful Johannesburg-based exhibitions;Africas Big Seven (AB7) and the SouthernAfrican International Trade Exhibition(SAITEX). The 2016 editions of AB7 andSAITEX take place from 19 to 21 June atGallagher Convention Centre, Midrand.

Africas Big Seven has a stellar 14-year trackrecord as the continents biggest and mostinfluential annual food and beverageexhibition, said show organiser ChristineDavidson, vice president of dmg EMS Africa.SAITEX has an even longer history as a mixed retail products expo for 22 years.SAITEX has become known as the biggestbusiness opportunities event in Africa. Last

year the two shows attracted over 860exhibitors and almost 14,000 visitors frommore than 70 countries.

Supporting development initiativesThe two co-located expos are a key driver forthe City of Joburgs food and agro-processingstrategy, which is a component of its Joburg2040 Integrated Development Plan. ReginaldPholo, director of trade and investmentpromotion for the City of Joburg explained,In order to facilitate access to markets, theCity is focusing on infrastructuredevelopment that includes storage facilities,processing, cold storage and transport. So itsimportant to inculcate a culture of foodprocessing, household and national foodsecurity and surplus sales to export markets, and AB7/SAITEX are the perfectplatforms for this.

Emerging agricultural and agro-processing businesses are enjoying

significant successes from projects andstrategies driven by the City of Joburg oneof these is CoJs ongoing participation in theAB7 and SAITEX shows. Pholo said, CoJ usesthese annual shows as part of its ExporterAwareness Programme, which showcasesthe many business opportunities forentrepreneurs. This also helps broadenSouth Africas exporter base in theagricultural and agro-processing sectors bydeveloping new and existing exporters.

Success at SAITEX and AB7One resulting success story is David Osaro,managing director of Edo Fresh and theNelson Mandela Peoples Market, whomigrated to South Africa 24 years ago withvirtually no capital, but a sheer determinationto succeed. Osaro attributes a key reason forhis success to SAITEX.

Networking opportunities andinteractions provided by CoJ are invaluableand have really changed my business, saidOsaro. My export produce now travels as faras Zambia, Nigeria, Thailand, Qatar and Japan;and the Nelson Mandela Peoples Market hasgrown from a team of just four people to nowempowering almost 500.

Osaro also owns the logistics companyEdofreight, which also carries multi-million-rand export orders secured at AB7 andSAITEX through the assistance of City ofJoburg and the Joburg Market. Pholo said,SAITEX is a phenomenal platform thatshould not be missed.

For the 2016 shows, the City of Joburgplans to host a series of export seminars aswell as business-to-business matchmakingsessions in the International business loungeat Gallagher Convention Centre.

Davidson said, With demand for qualitypackaged and prepared foods and beveragessoaring throughout Africas rising middleclass markets, now is a good time to get afoot in the gateway to business in Africa, andthats AB7 and SAITEX.

AB7/SAITEXBUSINESS

22

Enabling access toagro-processingJohannesburg is set to become a regional food manufacturing and exporthub, based around the networking opportunities at AB7 and SAITEX


SAITEX and AB7 attracted more than 800 exhibitors andnearly 14,000 visitors from over 70 countries in 2015

SAITEX is an eective networking platform forentrepreneurs seeking business opportunities in foodmanufacturing

Reginald Pholo (left) with one of the Citys SMMEs atSAITEX 2015

Reginald Pholo (centre) from City of Joburg visits thestand of one of his SMME exhibitors at SAITEX 2015


S04 ATR April 2016 Finance_Layout 1 24/03/2016 16:42 Page 23

Leading international firms can bestrategic partners for integrating intoglobal value chains (GVCs). About four-fifths of world trade is linked to the networksof multinational corporations (MNCs). Thesefirms aided by modern transport andcommunication technology and increasingglobal division of labour are at the centre ofthe drive towards GVCs as they optimise theirsourcing strategies through geographic re-organisation and the separation ofproduction stages. Despite the surge inexternal trade in past 20 years, Africa stilltrades below its potential, both in terms oftotal flows and of positioning in GVCs, according to the InternationalMonetary Fund.

The African continent so far captures only a modest share of global trade in value addedterms, but higher level of GVC integrationholds potential of boosting employment anddiverting resources from less productiveactivities to newer ones, raising overallproductivity hence leading to much-needed structural transformation of theregion. African countries need to create 10-12 million new jobs every year just to absorbthe young people entering the labour market.Governments can tackle this challenge bymaking a national priority of attractingforeign lead firm investments and integratinginto global value chains, said the AfricanDevelopment Bank (AfDB).

The ecient functioning of GVCs requirescombination of intermediate componentsfrom dierent locations and often manysuppliers. The shortcomings in the businessenvironment, infrastructure, productivecapacity and skills in sub-Saharan Africaconstitute major barriers to greaterparticipation in GVCs. Therefore, any policythat seeks to encourage GVC investmentsshould eectively address potentialshortcomings, especially physicalinfrastructure and technical-managerial skills,

the environment given to entrepreneurs, andeective openness to trade, includingintraregional trade among Africa countries, which remains low compared toother regions.

What determines GVC investment?Given the rising complexity and competitionin global supply networks, MNCs selectivelychoose locations based on the presence ofthe following factors:

* Reliable infrastructure for supportingoutput facilities and handling exports

The host country must provide ecienttransport linkage both internal and external,utilities (power/water) and access toinformation, communications and technology(ICT). Improving transportation capacity road, rail and air enhances the links to portsand airports hence enabling a faster deliveryof goods and make African economies moreattractive to foreign investors.

The requirements in terms of infrastructuralservices are often specific to the value chainIn agriculture, perishable goods (fresh fish,dairy products and flowers) require airfreight and cold chain facilities, whereascoee and cocoa demand ecient portfacilities. In manufacturing, just-in-timeclothing/apparel orders require airfreightcapacity, while automotive productionnecessitates port facilities. Manufacturingand assembly-line operations are attractedby the presence of cluster industrial parksand special economic zones whereinvestors receive fiscal incentives.

Natural and human resources the hostcountry must possess the required rawmaterials for the manufacture of productsand pool of skilled manpowerAn educated workforce is crucial forexport-oriented activities. Investment intechnical and vocational training

programmes should complementinvestment in basic education to enhancespecific skill-sets related to individualindustries and value chains, advises AfDB.Unit labour costs and wages are, too, majorconsiderations, where Africa still holdscompetitive advantage compared tosouth-east Asia and China.

Skill upgrades are prerequisite to shift intohigher value-added activities in GVCs, such asprocessing and packagingDelivering high-tech products requiressetting up schools and training institutesspecialised in the field as well asestablishing testing laboratories. MostAfrican manufacturers need technical andbusiness administration courses toupgrade their productions and acquirebetter knowledge of global marketplace.Developing new varieties of products is a key element of successful strategies inmany GVCs. The educational demands inlabour-intensive services sector (mainly callcentres and tourism) are much broader,from ICT skills to foreign businesslanguages (chiefly English and French).

Degree of industrialisation manufacturersin host country should be capable ofhandling outsourcing businesses fromoverseas firms, sub-contracts works andproducing components, with eectivequality-control methodsIn agriculture, many African smallholdersare prevented from integrating into GVCsdue to their inability to comply withinternational food standards andcertifications, i.e. health/safety(phytosanitary) standards. Increasedparticipation in GVCs also demands a moreconducive business climate and theavailability of entrepreneurs (capable ofdelivering supplies that meet lead firmsrequirements for quality and timeliness).

InvestmentFINANCE

24

Integrating Africas assetsinto global value chainsImproving the environment for integration into global trade, so increasingthe continents integration into global production networks



Greater openness to international trademeasured by import barriers, quotas,average taris, etcTrade liberalisation promotes new exportsectors, with positive spillover eects oneconomic growth and job-creation. Policybarriers such as lengthy customsprocedures undermine the competivenessof time-sensitive and perishable products.High taris on the import of intermediategoods and government stipulations toprocure locally can also hamper theoverall competitiveness of the value chain activity.

Further trade liberalisation measures canmake African economies more competitive ininternational supply chainsFor instance, reducing import barriersshould help attract MNCs that rely onimported intermediate inputs andmachinery to export manufactured goods.In particular, establishing fasterimport/export processes is vital to

integrate the global supply networks that heavily rely on imports for assembling activities.

Investors place a higher premium on goodgovernance and socio-economic stability inthe host countryThe wider business environment beyondinfrastructure needs attention. Red tape,lengthy procedures and corruption serve todeter new investments by foreign leadfirms, whilst preventing local entrepreneursand farmers from making the most of theopportunities presented by GVCs. African

port authorities need to eradicateineciency and capacity problems thatresult in long waiting times for export-oriented businesses. Improvements areessential to successfully compete in a globalised economy.

Eective collaboration requires support fromlocal business associationsThe Ethiopian textile and garmentmanufacturers association, for example,has become a vital partner for governmentand for global lead firms such as H&M (theSwedish clothing retailer). The association

InvestmentFINANCE

26 African Review of Business and Technology - April 2016 www.africanreview.com

Chart 1: Global Manufacturing Value Chain Activities in Africa, 2014

Source: African Development Bank, AEO Country Experts Survey 2014.

29%

32%

35%

35%

36%

39%

49%

88%

0 10 20 30 40 50 60 70 80 90

Primary inputs (fertilisers, equipment)

Production of agricultural output (fruits, vegetables, cotton, co!ee, tea, cocoa, etc.).

Processing of agricultural output into higher-value products (canned food, etc.)

Sales and marketing

Distribution (supermarkets)

Packaging and shipping

Ancillary services (input retail, equipment service)

Research and development

Source: African Development Bank, AEO Country Experts Survey 2014.

24%

33%

44%

56%

58%

64%

79%

0 10 20 30 40 50 60 70 80

After-sale customer service

Final product assembly

Packaging and shipping

Intermediate inputs (production of components & modules)

Sales and marketing

Ancillary services (input retail, equipment service)

Design, research and development

Chart 2: Global Agricultural Value Chain Activities in Africa, 2014

Table: Drivers of GVC Participation & Upgrading: Perceptions of Strengths & ObstaclesStrength ObstaclesPercent* Percent*

Attractive endowments (e.g. natural resources and low-cost labour) 38 18Openness to trade and foreign direct investment 18 7Infrastructure and business environment 38 63Domestic capacity to respond to external demand 6 12

*Note: The percentages represent the share of total responses received for strengths and obstacles of operating in Africa, respectively.Source:African Development Bank, AEO Country Experts Survey 2014.


has helped to devise set of policiessupporting the sector and been a partnerto H&M in building-up capacity for meetingquality standards among local firms. TheKenyan Flower Council plays a similar rolein Kenyas horticultural sector.

Adding valueDeeper ties into GVCs a key determinant inadding enhanced value to trade and building

linkages with local firms can help reduceAfrican countries unhealthy reliance onprimary commodity exports, and thusvulnerability to exogenous external shocks.The region boasts an enormous potential tointegrate into international productionnetworks by leveraging its competitiveadvantages in agriculture, agro-business andmanufacturing.

Having adequate infrastructure, especially

reliable energy supply and significanttransport logistics capacity, a supportivedomestic business environment, skilledworkers and capable firms and entrepreneurs,as well as lower tari and nontari barriersare deemed pivotal for integrating into andupgrading in GVCs thereby attracting morelead global firms to Africa.

Moin Siddiqi, economist

InvestmentFINANCE


East Africas powerhouse for intraregional trade & investment

HSBC Bank listed Ethiopia as one of the 26 economies projected torecord the fastest growth between 2012 and 2050. It is a nationwith tremendous untapped mineral wealth, fertile land,huge/young population (14th largest on earth), vast waterresources and Africas largest bovine population. The countrysforeign policy of economic diplomacy plays a key role in promotingtrade and investment from advanced and emerging/ developingeconomies in dam construction and hydropower plants, agro-based industries and light manufacturing, mineral extraction,railway/road construction and airport infrastructure, chemical andpharmaceuticals, as well as higher education and industrialtraining, hotel services, architectural and engineering works.

Ethiopia is in advantageous geographic position to access globalvalue chains (GVCs) given transportation infrastructure and tradelogistics improvements. UK-based frontier market investment firmSilk Invest said, People are looking to improve their costeciencies, to live near their manufacturing base. Its a very stableplace, a very welcoming place. Ethiopia is closer to foreign directinvestment than other parts of Africa, remarked Bruno Casella ofthe United Nations Conference on Trade & Development (UNCTAD).

Ethiopias strong growth is largely due to shrewd nationalplanning and ambitious development strategy to address structuralproblems by creating hard/soft infrastructures to facilitate jobcreation, by tapping into the countrys comparative advantages innatural resources and trade, and by ensuring progress towardsachieving the Sustainable Development Goals (SDGs). Thus, Africassecond most populous nation (after Nigeria) witnessed consistentdouble-digit broad based growth and poverty-reduction. Ethiopiais often unfairly seen as emblematic of poverty and deprivationbut the progress it has seen over the past decade should helpchange that, said Ana Revenga, Senior Director for Poverty at theWorld Bank. She added: If this progress continues over the nextdecade, Ethiopia can propel itself and most importantly, its people

into a new era of prosperity.Ethiopia has the largest public investmentsin Africa (and sixth in the world), relative to

GDP. In recent years, Ethiopia has madesignificant progress in infrastructure,

and its infrastructure indicatorscompare relatively well with

low-income country peers. The country developed Ethiopia Airlines(now one of the three main African airlines) and associated regionalair transport hubs. It has launched an ambitious investmentprogramme to upgrade its network of trunk roads and isestablishing a modern funding mechanism for road maintenance.Access to water and sanitation is expanding rapidly (from a verylow base) thanks to judicious concentration on intermediateoptions such as traditional latrines, wells, boreholes and standposts, commented the World Bank.

Ethiopias infrastructure ambitions are even greater. They include:a quintupling of power generation capacity; a major expansion ofthe trunk roads network; constructing a total of 2,395-km of railnetwork to increase connectivity both within national and crossborders; expanding nation-wide telecommunications servicedelivery; and further water supply expansion in rural areas. Apublic-private partnership (PPP) is being encouraged. Ethiopianeeds to invest an average of US$5.1bn/year in infrastructure alonefor an entire decade.

Most important transport projects are a new heavy-duty, highspeed rail links to Djibouti (Ethiopias main export-import corridor)and Lamu Port in Kenya. The Addis Ababa-Djibouti line beingconstructed by China Civil Engineering Construction Corp; andChina Railway Engineering Corp (costing US$1.2bn) will help foreigntrade and reduce present high cost of international freight. Massiverenewable energy investments are underway to reach powergenerating capacity of 10,000 megawatts (MW) over the medium-term. It will soon generate electricity from a new hydropower dam,the 1,879 MW capacity Gilgel Gibe III on the Omo River andeventually 6,000 MW from Grand Ethiopian Renaissance Damunder-construction on the Blue Nile River. The dam will be thelargest hydropower plant in Africa and worlds 11th largest uponcompletion by 2017.

A new five-year Growth and Transformation Plan 2 (2016-2020)places greater emphasis on improving the productivity andmodernisation of the agricultural sector, and boosting thetechnological sophistication and economic input of the industrialsector. The World Bank believes Ethiopia could reach middle-income status by 2025 by raising domestic savings rates, privatesector development and improving the trade logistics.


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IT systems, a banks biggest enabler,has become the biggest barrier toinnovation. From the days ofproduct-centric banking, ITapplications were architected to runprocesses for each product from end to end.The problems were compoundedwith channel proliferation, whichrequired the integration of channel-specific interfaces to product-centricarchitectures. Large banks in particular,have taken a big hit to agility, flexibilityand innovation capability. This is notonly preventing banks from performingto potential but also limiting them fromexploiting the power of new digitaltechnologies to the fullest.As we head into 2016 and beyond,conventional banking institutions haveother challenges, including the digitaldisruption and the accompanyingthreat of nimble, technology ledfintechs, who are unbundling bankingservices. The only solution for banks isto simplify their IT landscape andevolve selective digitization initiativesinto a holistic strategy that will turn theenterprise fully, truly digital.The big question everyone asks iswhat makes a bank truly digital? AtInfosys Finacle we believe that there isa lot more to a truly digital bank.

The four hallmarks of a truly digital bankCustomers are no longer just passiveconsumers of financial services.Digitally empowered, they are takingcontrol of their banking relationshipsand financial decisions, and expect thattheir banks will help them achieve theirgoals effectively and efficiently. With customers becoming moredemanding, assertive and influential inthe relationship, banking experience isbecoming the kingmaker in thisbusiness. Hence every aspect,including processes, strategies anddecisions, must reflect this priority.Hence, when drawing up their

business plans, banks should focus oncustomer value and experience as a primary goal, rather than anafterthought to cost and revenuetargets.The truly digital bank will find waysto innovate regular products andprocesses to make them customer-centric. Fintech startup Digit andCommonwealth Bank exemplify this:Digit offers an app-less service thatanalyzes customers spending basedon which it withdraws small amountsto put into a fixed deposit. Incidentally,this type of product a Flexi Fixed

Deposit has been offered by many ofFinacle clients for several years now!Commonwealth Bank has made themortgage process more customer-centric with its property guide mobileapp, which allows prospective homebuyers to just scan a property andinstantly receive data on ruling price,sales history, suburb profile, rentalyield etc. This gives the bank anopportunity to engage with customers early on in the mortgageengagement cycle. In a truly digital banking scenario,technologies like gamification andaugmented reality will be leveraged toencourage desired behaviors andimprove experience. Banks will look tocollaborate and co-create to come upwith the best, most customer-centricideas. Importantly, banks will not onlylook at the needs of their owncustomers, but also their customerscustomers. In Poland, the ever innovative IdeaBank, the winner of BAI InfosysFinacle Global Banking InnovationAwards 2015, is offering cashmanagement services to SME clientsthat enable them to order a multi-function mobile ATM at no additionalcharge. A dedicated mobile app,developed in cooperation with iTaxi isbehind this facility. Clients can call thenearest vehicle and monitor itsposition on a map with a real-timetracking system. Once it arrives, thecustomers can complete their cashmanagement operations withinminutes.

Insight is everythingBanks always had a wealth of customerdata, which has multiplied manifold inthe digital era. The ability to quicklycapture and convert data in near-orreal-time into actionable insights willdistinguish the digitally-enabled fromthe truly digital. With the help ofadvanced analytics technologies, banks

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Creating a truly digital bankTruly digital banking is more than digital facelifts to banking operations orchannels. Infosys Finacle's Amit Dua, Vice President and Regional Head -Africa & Europe, offers perspective on creating a truly digital bank


Amit Dua-Vice President & Regional Head -Europe and Africa at Infosys


TECHNOLOGYInfosys

31African Review of Business and Technology - April 2016www.africanreview.com

can now leverage the treasure trove ofinformation, both within and outsidethe enterprise, to gain granular, real-time insights into customers,operations, markets and more. Apart from transaction andbehavioral data, banks also haveaccess to a variety of external datasources from social channels thatenable them to segment customers onthe basis of individual values,expectations and needs, rather than bybroad demographics. Using the powerof analytics banks can now build richerinsights into individual customers lifestage circumstances and personalizethe banking experience to thesegment of one. From the customers perspective,this will manifest as morepersonalized, contextualized andrelevant products and services. Trulydigital banks will leverage insights tostay ahead and educate clientsproactively about their emerging needs even before the customer has fullyrecognized them.Insights drawn from the advancedanalytics will also be critical to reducethe cyber-risks and contain frauds. Trulydigital banks will also leverage data-driven insights to optimize operationsto reduce costs. For instance, bankscan leverage the insights to optimallystaff call center during the holidayseason. Many of our clients areleveraging insights to decide upon thelocation for their ATMs. Digital bankswill also leverage insights to identifyopportunities for revenue expansionahead of others. For instance, reachingout to unhappy customers of otherbanks with contextual offers. To imbibe the full potential ofanalytics into the organization, trulydigital banks would need to leveragecloud-based/ open sourcetechnologies. In addition, they mustmake efforts to democratize analyticsand integrate it into the experience ofall stakeholders, from customers andall types of staff not just seniorexecutives to suppliers and partners.

Automation drives experienceThe rise of digital banking has createdan explosion in transaction volumes.For a truly digital bank, automation is a critical prerequisite both fordelivering a frictionless experience atthe customer interface and streamlinedoperations at the back-end.Automation, driven by business rules,

algorithms and machine learning, willgive banks the operational leverage toprocess millions of transactions andthousands of loans every day withoutincreasing costs. It will also allow themto accelerate the pace at which theyacquire new customers and expandtheir business. Automation will alsofree up the workforce from mundanerepetitive tasks to allow them to focuson higher value generating activities.But thats only the beginning. Thetruly digital bank has to exist in a worldof autonomous businesses driven bythe Internet of Everything and smartmachines, which has severalimplications. When refrigerators andkitchen containers order groceries ontheir own, banks must have a way ofengaging with those gadgets. Evenmore importantly, they must prepare toengage and influence intelligentmachines like Avatars, Robo-advisorsand Automated Investment Platformsthat will help clients take decisions in future.

With more data, more compute andbetter algorithms driving smartautomation on the one hand, andemerging technologies like Blockchainpointing at the automation of clearing,settlement and reconciliation on theother, the truly digital bank will need tocreate the necessary capabilities tohelp it sustain in its fully digitalenvironment.

Collaborative ecosystem is the newuniversal bankThe digital paradigm distributes,decentralizes and disintermediates.Hence truly digital banking will be builtnot on individual universal banks, buton an ecosystem of providers who willtogether deliver best-in-classexperiences. The focus, therefore, willhave to be on building systems ofcollaboration that can create a constantly expanding ecosystem thatcan deliver all services relevant to a customers financial needs in

a seamless manner. The ecosystemwill be the new universal bank in thedigital era. Accordingly, the ecosystemneeds to include partners from thefinancial and non-financial industries. Such an ecosystem will give banksthe ability to create interfaces withother auxiliary networks and servicesthat can enable them to extend thereach of their core businessfunctionality as well as quickly addnew competencies. Banks will becomemore open, thanks to APIs, apps anddeveloper/partner ecosystems.

Renew and New: The Infosys Finaclesrecommended path to truly digital bankingThe dual strategy of Renew and Newis built on the bedrock of unifiedpurpose, innovation and creativity. Thestrategy calls for banks to upgrade anddeploy moderns systems that allowthem to tap into the benefits of newtechnologies such as mobility,analytics, cloud computing, block chain,and artificial intelligence to gain agilityto respond effectively to the evolvingenvironment. At the same time, banksalso need to leverage these newtechnologies to open green-field opportunities for growth, profitability and enhancingconsumer experience. Balance is key to the Renew and Newstrategy. While banking leaderseverywhere are eager to add newdigital capabilities that will open upnew opportunities, they have to alsoensure their existing systems,processes and applications are capableof absorbing and supporting suchcapabilities. A linear approach, whichprioritizes one over the other, will fail todeliver to expectations. The emphasis,therefore, has to be on an orchestratedstrategy that drives renewal from thecore outward even as it enables theeffective assimilation of new digitaltechnologies from the edge. Focusingentirely on adding digital capabilities atthe customer interface withoutconnecting them back to the corewould create a short-term tacticaladvantage at best. On the other hand,reengineering the core withoutadequately re-imagining processes anddigitalizing customer-facing systemswill severely impede innovation in theenterprise. At Infosys Finacle, we havesuccessfully applied this dual strategyto banks of diverse sizes, in differentstages of technological evolution, andwith distinctive priorities.

Truly digital banking will not be around monolithic

universal banks, but around a banking ecosystem of best-

in-class banking expereince providers."



having realised the huge volume of cash transactions handledby the country's four out of six telecom service providers -MTN, Tigo, Airtel and Vodafone - through their mobile moneyservices, ARB Apex Bank, which is run by Bank of Ghana (BoG), hasmoved in to set guidelines for their operations.

According to Apex Bank, the number of mobile money transactionsgrew from 30m in 2012 to 106m by December 2014. The values wereGH171mn (US$43.48mn) in 2012, GH2.4bn in 2013 and GH11.6bn in2014. MTN premiered mobile money services in 2009, initially oeringservices such as money transfer and airtime top-up, and now has 4.8mnregistered customers, 19,500 merchants handling 18.5mn transactions.

New ways of workingWith the new guidelines, both the number and value of transactionsare set to multiply as analysts believe they will facilitate the expansionof financial services to millions of unbanked citizens and help capturefinancial transactions within the informal sector.

One of the major dierences between the old and new guidelines isthat mobile operators will require a license to become dedicated e-money issuers (DEMIs). They will own and manage the electronicmoney business using retail outlets and agents, extend coverage oftheir services and be supervised by the BoG.

The 'E-money Issuers Guidelines' and 'Agent Guidelines' is thereforemeant to create an enabling regulatory environment for convenient,ecient and safe non-cash retail payments and transfer of funds.

The new guidelines, developed with key stakeholders including theGhana Chamber of Telecommunications (mobile operators), the banks,payment service providers and other prospective electronic moneyissuers gave the telcos engaged in the mobile money service up to sixmonths to establish a separate business entity to handle these services.

The guidelines, which became eective in July 2015, stipulate, "Non-banks that have previously been oering mobile financial services inpartnership with banks must apply within six months of the cominginto eect of these guidelines, for a license in order to conform to thenew framework."

An objective for these guidelines, according to the central bank, is to"ensure that electronic money is only provided by (a) financialinstitutions regulated under the Banking Act, 2004 (Act 673); or (b) dulylicenced non-bank entities which are engaged solely in the business ofe-money and activities related or incidental to the business of e-money,and which are regulated and supervised by the Bank of Ghana."

The e-money issuers, the central bank said, promote the availabilityand acceptance of electronic money as a retail payment medium withthe potential to increase financial inclusion, and specify necessarysafeguards and controls to mitigate the risks associated with e-money business and ensure consumer protection.

The guidelines further categorised customer e-money accountsinto various groups which define their maximum daily and monthlytransactions and also stipulated an aggregate limit on cash-out andoutbound payments.

However, the transaction limits can be amended where applicableas the bank itself pointed that, "For very large companies where eventhese limits would be overly restrictive, an approval to supersedethese limits may be granted...on a case by case basis upon receipt ofapplication from the EMI justifying the need, proposing a revised setof limits, and providing business information supporting theproposal," the guidelines stipulate.

The central bank however cautioned that, if approved, EMIs arestrictly obliged to ensure the revised limits for each merchant arecontinuously adhered to. "If the Bank of Ghana perceives that thisprivilege is being abused, it will prescribe rectifying action for the EMIand may ultimately revoke the privilege," the central bank warned.

Clarity amongst the competitionAccording to the chief executive ocer of the Ghana Chamber ofTelecommunications, Mr Kwaku Sakyi-Addo, one consequence of theseguidelines is that mobile money services would receive a major boostin the near future from integration and interoperability of the variousmobile money platforms, allowing transactions between networks.

Speaking at a dialogue on mobile financial services he said in thewake of the issuance of the guidelines for mobile financial services,and in light of the promise shown by the sector, the industry wouldconsider making this feature available in the

Documents

African Review April 2016