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Aviat Networks seals expanded services contract with MTN Nigeria

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Aviat Networks, a microwave networking solution company has announced an expanded managed services agreement with MTN Nigeria.

Aviat Networks will manage the flow of material into Aviat-controlled facilities on behalf of MTN Nigeria. The material will be managed, marshalled and kitted in support of specific customer implementations that have been jointly planned between MTN Nigeria and Aviat Networks.

“This is an opportunity to work more closely with our partner on planning and deploying Aviat equipment into the MTN Nigeria network,” says Yahaya Ibrahim, Senior Manager Core and Transmission Implementation, NID-Network Group, MTN Nigeria.

“This new agreement demonstrates our confidence in Aviat’s capabilities to efficiently manage our inventory. The agreement reduces our overall costs and pain points and improves visibility to better plan future inventory requirements.”

MTN Nigeria is a key customer of Aviat Networks. This agreement further solidifies the company’s role as a trusted partner of MTN Nigeria. Aviat Networks currently provides a broad set of value-added services including network design and planning, inventory and spares management and product support across a broad spectrum of Aviat supplied products. Aviat Networks will be leveraging its proven approach to managing the receipt and shipment of products within the Nigerian sector.

“This agreement with MTN Nigeria lays the foundation to offer additional managed telecom services across our overall customer base,” says Heinz Stumpe, Aviat Networks Chief Sales Officer and Senior Vice President.

“It opens a new source of business for us upon which we intend to build,” concludes Stumpe.


South African SME industry not for the fainthearted

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Challenges such as strikes, load shedding and e-tolls reinforce the statement that starting and running a business in South Africa is not for the faint-hearted.

Gerrie van Biljon, Business Partners Executive Director, however believes it is more helpful to think of it as not for the unprepared.

Biljon says that the difference in opinion reveals the other side of the risk coin, namely opportunity.

“For the entrepreneur who is prepared for the intense risks of the local industry, South Africa is teeming with business opportunities to gain market share and fill unoccupied niches.”

In a risky environment, a simple back-up plan gives a business a major competitive advantage, says van Biljon.

“Dealing with the risks upfront involves identifying them and possessing a willingness to prepare for these risks. This applies to not only the risks that a business owner has a measure of control over, but also macro environmental risks, which are out of the entrepreneur’s control and remain present no matter how the entrepreneur runs his business.”

Van Biljon says that load shedding is one such macro risk.

“Nothing a business owner does will keep Eskom’s coal dry. There will be power outages, but business owners can and must be prepared for it. Back-up power generation is the most obvious safeguard, but an entrepreneur’s planning must include scenarios where suppliers or clients are incapacitated by power cuts. Anything from stock-piling to alternative sources of supply can be important parts of a business’s defence.”

In a developing country where a young constitution is still transforming long-established laws, new legislation, such as the Consumer Protection Act, is high up on the list of macro environmental risks, says van Biljon.

“Although business owners should not give up on their right to lobby for more business-friendly laws, legislation is largely beyond their control. Again, the first line of defence is awareness, knowledge and preparation. A business owner who attends a seminar on the Consumer Protection Act, for example, has an edge over those who are oblivious of the new regime.”

Labour unrest, with its ability to paralyse entire industries, is beyond the control of any owner-managed business. “A business unprepared for labour volatility is vulnerable. Joining industry bodies and employer associations can form an important part of managing the risk,” says van Biljon.

He adds that another macro risk in South Africa is fiscal volatility, at present mainly in the form of fluctuating exchange rates.

“It is not only exporters and importers who need to be aware of the risks caused by fluctuating exchange rates, but many businesses with a local focus too. For example, those whose supplies may be affected by a falling rand can prepare by cultivating alternative sources of raw material or by adapting prices timeously.”

Apart from these external macro risks, business owner also face a range of micro risks – those dangers inside a business over which the entrepreneur has control.

Van Biljon says that labour is one of the biggest micro risks for local businesses.

“Although businesses have little control over the large union decisions that affect entire industries, the entrepreneur recruits, trains and shapes his or her team. Huge risks and opportunities face the business owner in his interaction with his staff, ranging from the risk of losing key personnel to competitors or ill health, to grievances that can spin out of control.”

He says that other micro risks are those inherent in the operations of a business.

“There is a whole range of risks that require the constant focus of the business owner, namely loss of a major supplier or client, the dangers of cash flow drying up or business expenses creeping up. A continuous process of investigating and evaluating the overheads of the business should be done to manage these risks.”

“Changing markets also require local business owners to rethink their marketing methods and even their business models. Early adopters of new products and technologies can gain a distinct advantage over their competition.”

All these risks may sound overwhelming and even impossible for a single owner-manager to handle, but van Biljon believes that it is possible for entrepreneurs to thrive despite them and that the answer lies in a systematic thinking and planning process.

He recommends that entrepreneurs analyse their business every six months and sort all the risks facing the business into various categories, such as market risks or operational risks. “For each of the categories, the entrepreneur must identify the possible impact of the risk, as well as the likelihood of it materialising. This assessment then forms the basis of a plan, which will consist of practical ways in which the business must prepare for the risks, for example through insurance or sourcing alternative supplies.

“With such a plan in place, South Africa becomes an exciting and fertile place in which to build a business, concludes van Biljon.

SANRAL gets ZAR250.8 million from e-tolls

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The South African National Roads Agency Limited (Sanral) has collected ZAR250.8 million since the commencement of the Gauteng e-toll system in December 2013, the agency said on 19 March 2014.

Inge Mulder, SANRAL Chief Financial Officer said progress in registering vehicles has also been above expectation, being 1 242 317 at the end of February.

Mulder said since toll commencement, approximately 2.5 million vehicles have been identified on the Gauteng network.

Revenue of ZAR953 million has been recorded. However, Mulder said the revenue represents the nominal value of transactions, excluding VAT.

The values have not been adjusted in terms of International Financial Reporting Standards (IFRS), which require the amount to be fair valued and impaired, if applicable.

The values are subject to change during the financial year end process, and will still be reviewed by the Auditor-General for accuracy and completeness. No provision for bad debt has been included.

However, Mulder also pointed out that it was important for people to understand that tolling was not only about collecting money to maintain roads and service debt.

“It’s also about optimising road based transport,” she said.

The current debt is ZAR39.8 billion as issued under the Domestic Medium Term Note programme (DMTN: HWAY and NRA) and the historical SZ bonds.

The same figures were also shared with the Parliamentary Portfolio Committee on Transport, where Sanral had clarified that it had registered and non-registered users.

“We made Parliament understand that there were no major issues with registered users and that of the 1.2 million registered users, 964 886 (77%) users had purchased an e-tag, with the remainder of 277 431 (23%) opting for the Vehicle Licence Number plate registration,” SAIS Nazir Alli, SANRAL CEO.

“We also conceded to Parliament that where we have issues is with unregistered users and the majority of queries included cloned number plates and vehicles without number plates which we are attending to as a matter of priority and is being done in conjunction with the Department of Transport.”

Alli said they reject the insinuations that have been made by their opponents that these figures are inaccurate.
“We have no reason to manipulate these figures because we are audited by the Auditor-General and that is good enough for investors because they really want to know if the cash flows generated by the project will yield a good return on their investment,” he said.

Mozambique – profitable power investment destination

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Mozambique’s discovery of the 4th largest gas reserves in the world, coupled with an estimated US$12 billion worth of power projects in the pipeline and steady economic growth of 8% a year, makes the country one of the most exciting and lucrative power investment destinations in the world.

Most recently, ACWA Power Moatize Termoeléctrica announced the development of a thermo-electric power station in Mozambique’s Tete province with an estimated cost of US$1 billion, and the Japanese government announced it is to grant Mozambique a loan of 17.27 billion yen (167 million US dollars) to build a gas fired power station in Maputo. The 3rd Annual Powering Africa Mozambique Meeting (http://www.poweringafrica-mozambique.com) will bring together senior decision-makers representing such projects.

Public sector participants who will attend the meeting include:

– Hon Salvador Namburete, Minister of Energy, Republic of Mozambique
– Laura Nhancale, Director of Studies and Planning, Ministry of Energy, Republic of Mozambique
– Antonio Osvaldo Saide, Director, New and Renewable Energy, Ministry of Energy, Republic of Mozambique
– Pascoal Bacela, National Director of Energy, Ministry of Energy, Republic of Mozambique
– Carlos Yum, Business Development Director, Electricidade de Moçambique (EDM)
– Isaque Chande, Commissioner, CNELEC
– Maduna Ngobeni, Project Officer : IPP Renewables, Department of Energy, South Africa
– Private sector participants will include:
– Cédric Lemarié, General Manager, Vale
– Willem Theron, General Manager: New Business Development, Southern African Energy Unit, Eskom
– Manoj Gupta, Country Head Mozambique, Jindal Africa
– Kribs Govender, General Manager SNE, Low Carbon Electricity, Sasol
– Sean Friend, Portfolio Manager, Infrastructure, Developmental and Environmental Assets Old Mutual Investment Group (Pty) Limited
– David Humphrey, Global Head of Power and Infrastructure, Standard Bank Group
– Pedro Pereira Coutinho, Managing Partner, Eaglestone

A combination of roundtables and workshops will allow participants to question and engage in dialogue with government officials and private sector developers to explore solutions and help shape policy for some of the most critical issues facing the development of the power sector in Mozambique, including: the electrification of gas for domestic and international use, the funding of hydro power projects, the funding of grids, solving the off taker issues and lack of government guarantees.

The 3rd Annual Powering Africa Mozambique Meeting is being hosted in partnership with the Mozambican Ministry of Energy.

Lesotho Highlands Water Projects enters phase two

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The Lesotho Highlands Water Project is a win-win situation as it provides much needed water to South Africa and creates infrastructure development and energy generation in Lesotho, says South African President Jacob Zuma.

Speaking at the sod-turning ceremony for phase two of the Lesotho Highlands Water Project, in Maseru, Lesotho, on 27 March 2014, President Zuma said both phases of the project, phase one and phase two, had vast benefits for both countries.

In operation for over 20 years, the The Lesotho Highlands Water Project supplies South Africa with approximately 780 million cubic meters of water per annum.

When fully operational, phase two of the project will substantially increase the volume of water supplied to South Africa.

Phase one of the project, which was funded by the World Bank, was completed in 2004.

It has provided Lesotho with a number of benefits, inlcuding that the country will obtain guaranteed royalties’s revenue.

“There has been benefits of infrastructure development during Phase I which has included 102km of paved roads, 265km of gravel roads, 1 133km of roads rehabilitated to grade 1 standard, 11 bridges built including 3 bridges between Lesotho and South Africa in Maseru, Maputsoe and Caledonspoort,” said President Zuma.

The benefits also include 299km of power lines, staff housing for an estimated 300 workers as well as Hydro electricity generation estimated at 72 megawatts.

The building of the Metolong Dam to which South Africa contributed R50 million, also meets the water needs of the Kingdom of Lesotho, he said, adding that Lesotho has also gained a village and an Information Centre at Metolong.

President Zuma said the benefits to South Africa were also immense.

“The country gains high quality water transfers and job opportunities. There is improved infrastructure in Clarens, Fouriesburg, Ficksburg and Ladybrand in the form of new border crossings and improved amenities, community halls, clinics, houses and improved rail facilities such as in Ficksburg,” said President Zuma.

The purpose of the project is to provide Lesotho with a source of income in exchange for the provision of water to the central Gauteng province where the majority of industrial and mining activity occurs in South Africa, as well as to generate hydroelectric power for Lesotho.

The Agreement on phase two of the Lesotho Highlands Water Project between the two countries was signed in August 2011 and South Africa ratified it in 2012 while Lesotho finalized its ratification process in 2013.

South African companies have a significant presence in Lesotho and are involved in various sectors such as housing, food and beverages, construction, retail, hotels and leisure, banking, and medical services.

EU provides sustainable energy across Africa

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The European Commission has, on 1 April 2014, announced the results of the first call for proposals of an innovative programme for providing finance to bring electricity across the African continent.

Grants of €95 million have been awarded for16 projects across nine African countries to provide access to energy in rural areas, an amount which will be translated into projects costing more than €155 million, through co-financing support by applicants and bring electricity to more than 2 million people.

“This shows that real results are being delivered and that the EU is scaling up proven successful projects which have a high impact on poverty reduction through sustainable rural electrification. Energy is fundamental for every area of development; from creating jobs and boosting growth to improving healthcare and enabling people to cook safely. Yet too often, people in rural areas have been left behind – a shocking 84% of those without access to energy now live in the countryside. We need to make sure that our work supports everyone, no matter where they live,” says Andris Piebalgs, European Development Commissioner.

This is a first step in a new innovative programme to bring electricity to many millions. Over the next 7 years the Commission aims to spend more than €2 billion in supporting energy in Africa. This will, in turn, leverage investments exceeding €10 billion, filling in the gaps for energy infrastructure and therefore allowing businesses, schools, homes and hospitals to get the electricity they require.

In addition, another Call for Proposals targeting rural electrification in fragile states (such as Burundi, Liberia, Somalia and Mali) is currently under evaluation and will deliver more benefits in these countries, where the energy needs are greatest. This will be the next step to ensure that EU’s efforts to provide sustainable energy where it’s most needed bear fruit.

Background

The funding announced today is the result of a ‘Call for Proposals’, which is an EU funding system which enables NGOs, government and private sector organisations to receive a grant for EU Funding based on their proposal for an innovative project.

The countries which will benefit from this initiative are: Madagascar, Burkina Faso, Senegal, Cameroon, Liberia, Tanzania, Sierra Leone, Eritrea, Rwanda. The European Commission will promote another 40 proposals received –but not selected – to private and public donors and development agencies. Therefore, the list of countries and the number of rural population benefiting from the Call results could further increase.

In addition, infrastructure projects financed through our innovative blending instruments and the Technical Assistance Facility available for all Sub-Saharan African countries are already delivering results and contribute to the EU support for Sustainable Energy for All objectives.

Worldwide, about 1.3 billion people have no access to electricity. Up to a billion more have access only to unreliable electricity networks. More than 2.6 billion people rely on solid fuels, for example traditional biomass and coal for cooking and heating.

A well-performing energy system that improves efficient access to modern forms of energy would strengthen the opportunities for the poorest people on the planet to escape the worst impacts of poverty. Access to energy provides people with the means to generate income – and that in turn creates wealth and new markets.

One third of African nations engaged in climate-smart initiatives

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In its just-released 2013 Annual Report for its work with the Climate Investment Funds (CIF), the African Development Bank (AfDB) has indicated that it is supporting 16 national and 1 regional Investment Plans in renewables, forests, resilience and transport in Africa, and that more than half of the projects under those plans – including all projects addressing forests and climate resilience – have been approved by the Bank’s Board and are driving toward implementation.

As spelled out in Financing Change, the AfDB and CIF for a Climate-Smart Africa, this work is part of the Bank’s larger vision to support African nations’ efforts to achieve climate-smart growth. AfDB has dedicated $4.3 billion to clean energy since 2007 to become the largest financer of clean energy on the continent.

Today, through the AfDB as a CIF implementing agency, 16 African countries – nearly one third of the continent’s 54 nations – are actively engaged in innovative and urgent climate-smart work, and 13 projects out of the AfDB CIF portfolio’s total of 25 have been approved and are beginning on-the-ground action.

“The AfDB’s CIF-supported work builds on a unique feature of the CIF design,” said Mafalda Duarte, AfDB’s CIF Coordinator. “To support countries in their efforts to embed climate response into their national development plans – a must if climate response is to have any lasting impact – the CIF introduced a programmatic approach to climate action, through which countries developed national-level Investment Plans (IPs) in order to qualify for CIF funding. With AfDB’s and CIF’s support, 16 countries throughout the continent have done the critical legwork to build viable IPs, and we are now underway to help them carry out the projects in their IPs.”

As of today, approved projects in the AfDB CIF portfolio, with a total investment of $1.1 billion from AfDB and $0.5 billion from the CIF, include:

Clean Energy


Morocco Ouarzazate Concentrated Solar Power (CSP)

Morocco ONE Wind Energy
South Africa Eskom wind and solar power
Kenya Menengai geothermal fields
Nigeria renewables and energy efficiency financing through local banks

Sustainable Forest Management and REDD+

Burkina Faso gazetted forests community REDD+
Democratic Republic of Congo addressing deforestation and forest degradation in the Mbuji Mayi/Kananga/Kisangani supply areas
Ghana engaging local communities in REDD+

Climate Resilience

Mozambique sustainable land and water management

Mozambique Baixo Limpopo irrigation and climate resilience
Niger water resources mobilization and development
Niger climate information development and forecasting
Zambia strengthening climate resilience in the Kahue sub-basin

Expected outcomes from the projects include significant reduction of CO2 emissions, increased energy access and efficiency, poverty reduction, and regenerated forests in forest-rich countries.

The report can be accessed from the following link: http://bit.ly/1lV08xu

SMEs to incorporate corporate governance

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Corporate governance, a system by which businesses are directed and controlled, is often frowned upon by small and medium enterprises (SMEs) owners due to its association with red tape. However if introduced successfully, corporate governance can in fact be a cost effective growth strategy for SMEs.

This is according to Christo Botes, Executive Director at Business Partners Limited, a specialist risk finance company for formal small and medium enterprises (SMEs), who says that many entrepreneurs have the perception that corporate governance is unnecessary and costly, instead of thinking of the system as a guideline that will add structure to a business and assist the entrepreneur in steering the business in the right direction for growth.

“Entrepreneurs often feel that corporate governance takes up precious time and energy that they would prefer to put into running their business. However, without a structure in place and goals to work towards, this additional time poured into the business isn’t necessarily going to result in long-term growth.”

Botes says that often a business grows beyond the entrepreneur’s control, and often it is during this stage that mistakes creep in and losses accrue on projects, simply because the correct planning, coordination and governance methods were not used.

“As a business grows more structure is needed, and eventually it is necessary for the entrepreneur to adapt and implement an organised structure within the business.”

He explains that a corporate governance framework is the set of policies, rules and procedures put in place – agreed upon by the business’ main shareholder, most likely the entrepreneur – that will assist with transparency, accountability, ethical behaviour and ultimately profitability within the business.

“Corporate governance assigns rights and responsibilities among different individuals in the business. Generally there are three layers of individuals involved, namely the investors or shareholders, board of directors and a management team. Shareholders require a return on the investment that was made into the business. The board of directors, which are appointment by the shareholders, ensure that the management team within the business are adhering to their mandates and responsibilities, and then report back to the shareholders on the return on investment.”

Botes adds that corporate governance ensures a formal business structure, and that the sole entrepreneur is no longer occupying all three roles of the business.

“Often the entrepreneur plays the role of sole shareholder, director and management of the company and differentiating between these roles can become blurry. This results in the entrepreneur running from day-to-day and job-to-job, and letting other aspects of the business be overlooked, such as budgets, returns and employee structures.”

In order to create discipline within the company, an organised structure needs to be introduced. Botes advises that businesses introduce corporate governance sooner, rather than later, and says that even smaller businesses can benefit from implementing structure into the business.

He advises to firstly introduce a mentor into the business, an individual that will guide the entrepreneur and ask the right questions, such as what business’ goals are for the next one to five years, whether the budgets have been drawn up and whether the business should be sharing more or less risk.

“A mentor will also ensure the business’ focus doesn’t fall on operation issues, but rather strategic issues. He or she will also be able to provide a helicopter view of the business, while an entrepreneur may just be looking internally.”

“This process will slowly make the entrepreneur understand that there is more to think about than just delivering the goods out of the warehouse and into the client’s hands.”

A common perception among SMEs is that corporate governance is costly and many smaller businesses assume they can’t afford it. Botes says that these entrepreneurs should start small management teams initially, consisting of themselves, a mentor and perhaps a spouse or factory manager or team leader.

“This team will be responsible for the different areas in the business. Regular team management meetings should then be held where progress is reported. The mentor will be responsible for overseeing all such meetings to ensure sufficient progress is being made.”

He adds that a management team plays a big role in businesses, especially growing companies.

“A management structure is crucial to not only manage a growing team of employees, but also to ensure each individual is clear on their job objectives and role within the company. By setting these roles, all employees within the business are challenged to work towards, and meet, a common goal, rather than the entrepreneur being solely accountable for productivity.”

As the business continues to grow, and generate more money, a board of directors can slowly be introduced, says Botes.

“Corporate governance is a natural progression and while the full structure may not be suited to all businesses, a certain degree of structure needs to be implemented in order to ensure business growth. Corporate governance enables entrepreneurs to grow their business and turnover without taking on more risks, and rather grow organically through efficient planning and management of the company’s workforce,” concludes Botes


IHS Holding secures a further US$130 million to fund projects across Africa

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IHS Holding Ltd, one Africa’s largest independent telecommunications infrastructure company, has secured a further US$130 million in the second tranche of its latest fundraising.

The capital raise is in addition to the US$490 million of debt and equity announced 3 March 2014 and is with existing investors.

IHS will use the funds to accelerate its plans for expansion into new and existing markets.

AfDB celebrates 50th anniversary in Tunis

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The African Development Bank (AfDB) is celebrating its fiftieth anniversary this year: half a century of development financing for the African continent.

The celebrations, featuring a number of different activities, will be launched on 22 April 2014 at the Palais des Congrès of Tunis, in Tunisia.

Taking part in the event will be representatives of the accredited diplomatic corps in Tunis, international organizations, development partners, civil society organizations, the media and the private sector.

The Tunisian government will be well represented. Tunisia is the country that has been home to the Group’s Temporary Relocation Agency for over a decade. A high-level delegation will attend the ceremony from Côte d’Ivoire, the country in which the AfDB has its head office. All of this is leading up to the finale of the celebrations in Abidjan in November 2014.

The Tunis ceremony will feature artistic performances, a video screening and speeches, including the launch speech to be given by AfDB President, Donald Kaberuka.

The fiftieth anniversary of Africa’s pre-eminent development finance institution will be an opportunity for the AfDB board, management, staff and stakeholders to look back and reflect on the support given to the African member countries. Above all, it will also be a time for reflection regarding the next 50 years. This theme of retrospection and prospection is also reflected in that of the 2014 annual meeting of the Bank which takes place in Kigali, Rwanda, from 19 to 23 May 2014, with the title ‘The next 50 years: the Africa we want.’

Date: 22 April, 2014
Venue: Palais des Congrès, Tunis
Time: 15:00 CAT

IBM opens first cloud based data centre in South Africa

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IBM announced today, 8 March 2016, that it is opening a new IBM Cloud Data Center in Johannesburg, South Africa.

The new cloud center is the result of a close collaboration with Gijima and Vodacom and is designed to support cloud adoption and customer demand across the continent.

IBM will provide clients with a complete portfolio of cloud services for running enterprise and as a service workloads.

The new facility underscores IBM’s growing cloud footprint, which now includes 46 cloud data centers across six continents.

“We’re working to drive cloud adoption that best leverages a customer’s existing IT investments,” says Hamilton Ratshefola, IBM South Africa General Manager.

“Our new Cloud Data Center gives customers a local onramp to IBM Cloud services including moving mission critical SAP workloads to the cloud with ease. It also gives customers the added flexibility of keeping data within country which is a key differentiator for IBM.”

The IBM Cloud Data Center will provide enterprise customers in South Africa and Africa with access to IBM’s global network of Cloud Data Centers and services expertise.

This will enable businesses to run critical applications on the cloud, providing access to a broad array of services for building in-country cloud solutions, while offering faster network speeds to improve performance and reach end users even faster.

“The increase of enterprise cloud computing on the continent is being driven by large enterprise and multinational organisations expanding their presence and IT requirements across Africa,” says Vuyani Jarana, Chief Officer of Vodacom Business.

“CIO’s are looking to gain efficiencies and cut cost by moving more of their IT infrastructure, applications and processes into the Cloud. Vodacom’s extensive Fixed and Mobile network infrastructure, Pan African and global footprint and its investment in data center infrastructure provides the ideal platform and environment to deliver cloud services to large and multinational enterprises.”

Gijima as a 100 percent black owned South African company, is proud to be the cloud partner of choice for these unique IBM services,” says Eileen Wilton, Gijima Group Chief Executive Officer.

 

Vodacom business predicts upsurge in ICT across Africa (Watch Video)

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Vodacom Business, the pan–African ICT provider in the Vodacom group, is witnessing an upsurge in demand for ICT services, in particular the application of cloud, M2M and enterprise mobility on the continent.

Last week the company announced a partnership with IBM to open the first industrial-scale cloud data centre facility on the African continent.

Vuyani Jarana, Vodacom Business Chief Officer says that technology is playing a key role in commercial growth on the continent.

“CIOs are looking to gain efficiencies and cut costs by re-looking IT infrastructure, even leapfogging traditional technology.”

“Technology like cloud is both a disrupter that drives market-level change, and an enabler that allows companies to respond effectively to that change within their own business,” says Jarana.

ICT solutions like this are uniquely powerful in helping businesses become more robust, more agile and better able to communicate to staff and clients.

“Only those able to stay on course in terms of strategy, yet respond quickly to customer needs will unlock the opportunity that such technology offers and change brings,” adds Jarana.

The AFRICA CEO FORUM, taking place on 21 and 22 March in Abidjan, Côte d’Ivoire, is an ideal platform for Vodacom Business to share our experience and expertise of doing business in Africa.

The Forum, considered the foremost international meeting for African CEOs, bankers and investors – has become one of the most important events on the African business calendar, enabling participants to exchange their views and opinions on the issues affecting economic development for companies on the continent.

“We see our role as a facilitator and integrator – working with business and government to develop relevant and innovative solutions that will meet the growing need for services, products and great experiences. This is how we play a key role accelerating business growth across the continent.”

Vodacom’s extensive Fixed and Mobile network infrastructure, Pan African and global footprint and its investment in datacentre infrastructure provides the ideal platform and environment to deliver ICT services to large, multinational enterprises and governements.

 

Mobile payment systems enhance cash-only economy

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Mobile payment systems have created a flexible infrastructure that has made digital currency available to people previously locked into the cash-only economy, according to Hannes van Rensburg, Fundamo Founder.

Van Rensburg told a forum at the Gordon Institute of Business Science (GIBS) that the future of the technology lies in the opportunity to develop more mobile products, such as savings and insurance applications, that wouldn’t have been possible in a cash-only economy.

Having launched the first mobile banking solution in 1999, van Rensburg founded Fundamo, which proceeded to become one of the world’s most advanced mobile financial service platforms.

The platform has been deployed in more than 34 countries across Africa, Asia, and the Middle East, offering mobile financial services to unbanked and under-banked mobile subscribers including person-to-person payments, bill payments, wireless airtime top-up, and ticketing.

The company was acquired by Visa in 2011 for $110 million.

Future of mobile payments and opportunities for the industry

Van Rensburg said the development of mobile payment systems was “a revolution that many are not aware of.” He called mobile payments “a relevant and real technology,” especially for those who were locked into a cash-only economy.

Mobile payments had broken through the interface between cash and technology, and the ramifications of this were not yet fully understood.

“If you live in a cash economy, it is incredibly difficult to budget and to save. The majority of the global population doesn’t have access to electronic payments,” he explains.

While Fundamo was a commercial success, van Rensburg explained that the technology is also about fighting poverty and being able to educate people about money by giving them access to the history of their transactions and spending patterns.

In countries such as Kenya, Pakistan and Bangladesh, more mobile payments are made than transactions of any other kind.

Van Rensburg said he did not regret the sale of Fundamo to Visa in 2011.  While the company had 30% market share at the time, it began to bump into big brands such as Nokia mobile payments and SAP, as the technology became mainstream.

“Although our product was better, their brands were bigger,” he says.

Fundamo contacted possible buyers and settled on Visa, after a protracted process, as van Rensburg “felt they were the right partner for our clients, our staff and for the price.”

Following the acquisition, Visa began to roll out payment system mVisa, which is Fundamo technology, in an effort to connect mobile payment systems across applications.

Van Rensburg explained that mobile payments still operate on a closed loop system, linked to a specific payment device or system. Building an open loop would enhance the efficiency of mobile payments and their interoperability.

While it is unlikely that card technology will be phased out in the near future, especially in the retail environment, van Rensburg said mobile payments are likely to replace transactions such as online card payments, person-to person and business-to-business payments in the near future.

Digital currencies or cryptocurrencies, in which encryption techniques are used to regulate the generation of units and verify the transfer of funds, such asBitcoin were not likely to be used on a wide scale, as the cost would simply be too high. While Blockchain, the public ledger of all Bitcoin transactions, is a technology with good characteristics, “there is too much hype around cryptocurrency and Bitcoin,” says van Rensburg.

On being an entrepreneur

As an entrepreneur, van Rensburg said he was driven by the need to go somewhere that hadn’t been chartered: “Entrepreneurs are saddled with the burden of wanting to change things.”

Van Rensburg said those who run start-ups and are waiting for the moment to sell and exit their business must remember that this comes with a loss of purpose.

“There is always a way. An attitude of perseverance is the difference between success and failure. As a start-up, find your identity and stay true to it,” was his concluding advice to entrepreneurs.

Africa needs $95 billion per annum to meet infrastructure demands

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Africa needs $95 billion per annum within the coming decade to meet its infrastructure demands.

The Continent’s need for infrastructure is driven by rising populations and rapid urbanisation and is causing a shift for all players in the sector.

Africa must roll out its infrastructure plans if it is to meet its growth forecasts for the coming years; this growth can be fuelled in part by infrastructure spending.

Internationally, the outlook is positive between now and 2020, signalling many new business opportunities for the sector across the Continent.

According to the World Bank, Africa’s trade potential is undermined by the constraints that African women face.

The contribution of women to trade is much less than it could be because of barriers that impinge on their trade activities, which jeopardises their capacity to grow and develop businesses.

The AfDB has sought to mainstream gender in all its sectors, especially in sectors that it invests heavily in such as transport, energy and ICT.

So many women are breadwinners in Africa, if they are empowered in the infrastructure and other sectors, then their businesses can grow accordingly and Africa will benefit.

The upcoming fifth Infrastructure Africa Business Forum aims to accelerate the business of infrastructure development and women’s empowerment in Africa.

The two-day conference and exhibition provides an opportunity for companies to focus on the continent’s growth hotspots, discuss infrastructure trends, meet project developers and relevant government authorities, whilst exploring infrastructure business opportunities.

In a move which will greatly enhance the conference’s offering and Africa’s trade potential, Infrastructure Africa has partnered with the African Development Bank (AfDB) to host the Africa Inclusive Infrastructure Forum (AIIF) from the 9 to 10 June 2016 at the Sandton Convention Centre, Johannesburg, South Africa.

The Africa Inclusive Infrastructure Forum will have a key focus towards issues of gender in infrastructure development across the continent.

The event will discuss financing for women-owned businesses in the energy, transport, ICT, telecoms and water sectors across Africa.

Cross-border and regional trade will feature highly on the discussion agenda and ministers and industry specialists will participate and share their expertise and unpack a roadmap for the way forward.

The AIIF will act as the first regional policy dialogue of its kind.

It is increasingly recognised that, for African economies to continue their recent substantial growth there is a need to address inequality, especially gender inequality.

The AfDB has made gender one of the areas of special emphasis in all the Bank’s operational areas and across its high 5s.

In addition to the AIIF, the AfDB will be hosting all the Infrastructure Ministers +1 (the Minister plus his top advisor or another senior official) and will be hosting a Ministerial Meeting alongside the event.

The Infrastructure Africa Business Forum will once again offer attendees the exclusive formal Business Matchmaking Programme to allow for crucial business networking.

This programme affords all exhibitors and conference delegates the opportunity to meet and engage with this year’s high-level speakers, exhibitors, sponsors and delegates on a one-on-one private meeting basis, at the event.

It is uniquely designed to help delegates make the right contacts, fulfil their business and target market objectives and establish long-lasting and valuable contacts in the infrastructure space.

Key sectors to be featured at the 2016 event include water, energy, ICT, telecoms, transport and finance.

SA Engineers Survey – minimum funds allocated towards infrastructure projects

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According to the latest PPS survey conducted among almost 600 engineering professionals, 80% of the respondents indicated that they do not think that the Government will allocate sufficient funds towards projects aimed at addressing the country’s electricity and water crises.

Manglin Pillay, South African Institution of Civil Engineering (SAICE) Chief Executive Officer, comments on the results, saying that the institution has been advocating urgent measures from Government’s side to roll out projects for a number of years now.

“With regards to solving the current water and energy challenges, infrastructure departments at various government departments have to be re-professionalised. Engineering firms in the public sector have made increased efforts to attract qualified, senior and registered civil engineering professionals into their ranks, in order to make the public sector an employer of choice for engineers.”

He says the number of qualified engineering practitioners in infrastructure ministry departments such as transport and water and sanitation, has dwindled substantially and employees without suitable technical training have replaced qualified engineering employees, to the great frustration of the infrastructure engineering economy of South Africa.

Pillay believes that the Government should aim to employ local, registered, experienced senior engineers to avoid any further deterioration of service delivery and insufficient energy and water reserves.

“South Africa just cannot afford water restrictions on top of load shedding.”

Macy Seperepere, PPS Professional Associations Manager, states that the survey also revealed a confidence level of only 35% among the engineers when they were asked whether they are confident that Government is effectively delivering on its promises on infrastructure spend.

“The respondents’ confidence level for this specific question has been deteriorating over the past three years from the first confidence level of 48% recorded in 2011.”

Pillay points to the President’s 2014 State of the Nation address where President Zuma says that over the next years, the Government will spend ZAR847 billion on the infrastructure and several projects are to be started or completed. “It is clear that what has been done over the past few years is far from the ZAR847 billion that was allocated towards infrastructure, even since as early as 2011.”

In the 2016 Budget Speech Finance Minister Pravin Gordhan allocated a collective ZAR870 billion to infrastructure projects in accordance with the National Development Plan.

According to Pillay, the engineering industry would like to see more projects rolled out in terms of actual spend on service delivery projects in the form of both social and economic infrastructure, which will have a direct impact on the lives of all citizens.

This issue probably lies at the heart of the engineers’ low confidence in the government to spend sufficient funds on infrastructure development, says Pillay.

“Many civil engineering and construction companies had to lay off experienced engineers due to the lack of project roll-out, with the government being the biggest client of all engineering companies in the country. This presents an opportunity for municipalities, provincial and national government to attract these skills back to the Government, where they are desperately needed.”

He states that this lack of project funding could lead to many engineers leaving the country to find employment elsewhere.

According to the PPS survey, a 67% confidence level was recorded when the survey respondents were asked whether they will remain in the country for the foreseeable future. While this result is still at a positive level, 61% of the respondents said that there were not enough opportunities for young engineers in the profession.

“When young engineers do find employment it soon transpires that senior engineers lack the time to properly mentor these youngsters. It is only through appropriate mentorship and supervision that young graduate engineers will be able to register as professionals with the Engineering Council of South Africa, and ironically this also inhibits transformation in this sector,” says Pillay.

“While there are clearly various issues that are of serious concern for South African engineers it was positive to note that the survey still revealed a 75% confidence level in the future of engineering profession over the next five years, and 69% of the respondents indicated that they will encourage their kids to enter their profession,” concludes Seperepere.


South African Energy Minister to attend Southern Africa Energy and Infrastructure Summit

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South African Energy Minister Tina Joemat-Pettersson has confirmed to join the Ministries of Madagascar, Zimbabwe, Malawi and Mozambique at the Southern Africa Energy and Infrastructure Summit (SAEIS), taking place on 4 to 6 May 2016.

Over 30 speakers from the SADC region will celebrate regional co-operation at the meeting and discuss the future of energy production, promoting energy and infrastructure projects that require both private and public-sector support in order to be realized in the region. The South African Minister will address investor questions on regional cooperation and South Africa’s supporting role within the SADC.

Additionally the African Forum for Utility Regulators (AFUR) has provided its backing of the meeting with 10 heads of regional regulation bodies attending. Regulators will contribute publically on the agenda as well as taking time at the meeting to privately debate a deeper, more integrated strategy to support private sector engagement and public sector needs.

DBSA, World Bank, OPIC, IFC, DBSA and AFC are all backing the project-focused working group, which is an extension of EnergyNet’s long standing partnership with Mozambique and these backbone investors.

“Having worked with the Mozambique government for 14 years now, we understand the landscape and the role the country can play regionally; therefore when a number of our private and public sector partners suggested we expand our offering to focus on energy and infrastructure projects regionally, it seemed the right move considering the rapidly changing role of SADC and SAPP to deliver greater integration.”

The Project Advisory Unit recently established to deliver these massive projects in partnership with World Bank.

These will be presented at the meeting and we expect them to throw up a number of opportunities for investors.

“For this reason it’s important that the private sector is able to participate in Maputo to further demonstrate its ability to play a pivotal role both in the planning and execution of the framework, but also to understand more clearly where the sector is going and who is shaping its direction,” Veronica Bolton Smith, EnergyNet Regional Director.

Confirmed public sector decision makers are:

Tina Joemat-Pettersson, Minister of Energy, South Africa

Horace Gatien, Minister of Energy and Hydrocarbons, Madagascar

Samuel Undenge, Minister of Energy and Power Development, Zimbabwe

Kescel Kaehaizi, Permanent Secretary, Ministry of Energy and Natural Resources, Malawi

Pascoal Bacela, National Director of Energy, Ministry of Mineral Resources and Energy, Mozambique

Isaias Rabeca, Executive Board Member, EDM, Mozambique

Antonio Saide, CEO, FUNAE, Fundo de Energia, (Energy Fund), Ministry of Energy, Mozambique

Guiherme Luis Mavilia, Chairman and CEO, CENLEC, Mozambique

Karen Breytenbach, Head of IPP Office, Department of Energy, South Africa

Remigious Makumbe, Director of Regional Infrastructure and Services, SADC

Alison Chikova, Acting Coordination Centre Manager, Southern Africa Power Pool (SAPP)

Paseka Nku, Acting CEO, NERSA, South Africa

Shamshir Mukoon, Production Manager, Central Electricity Board, Mauritius

John Kandalu, Chief Executive Officer, ESCOM, Malawi

Africa needs to upscale infrastructure to drive industrialisation

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In a constantly evolving and increasingly interdependent world, Africa and its 34 Least Developed Countries (LDCs) urgently need to find the best ways to industrialise their economies to avoid being further marginalised and excluded from the global economy for yet another decade in history.

For over a decade Sub-Saharan African economies have expanded at an average rate of about 5% a year. This was largely spurred on by the commodities boom in China as it rapidly urbanised. But as China’s economic growth has slowed, so has the demand for Africa’s commodities, stifling Africa’s growth trajectory.

One of the main reasons for concern is that Africa’s manufacturing industry has largely missed out on “a boom”.

“The general view is that Africa is de-industrialising and has skipped a vital industrial revolution like Asia experienced in the 1970s; which is critical for job creation,” says Nigel Gwynne-Evans, Chief Director for African Industrial Development with the Department of Trade & Industry (the dti).

“Africa has the lowest global percentage of productivity in manufacturing and the lowest employment rates in the world. The big concern is that we are already jumping to a services-based economy without creating a platform for manufacturing.”

An investigation into Africa’s de-industrialisation by The Economist agrees (November 7th 2015 edition): “To be sure, many countries de-industrialise as they grow richer (growth in service-based parts of the economy, such as entertainment, helps shrink manufacturing’s slice of the total). But many African countries are de-industrialising while they are still poor, raising the worrying prospect that they will miss out on the chance to grow rich by shifting workers from farms to higher-paying factory jobs”.

“There’s no doubt that what is known as the “4th Industrial revolution” brings advanced technologies to bare in all aspects of life, particularly to consumers in the form of dramatically improved telecommunications, access to faster internet, banking and retail services and services like Uber that add convenience to the consumer’s life.  Africa is adopting to these new technologies exceptionally fast, in leap-frogging to a more advanced world.  The big but, and it’s a big one, is that without a strong manufacturing sector, these services will largely be provided by global multi-nationals, with an increasing loss by governments of the levers to transforming their economies,” says Gwynne Evans.

The adoption of the 2030 Agenda for Sustainable Development and the Sustainable Development Goals (SDGs) as well as the African Union Commission’s 2063 Agenda and the COP 21 Paris climate change agreement in 2015, have given new impetus to the call for industrialisation to transform Africa, especially in its Least Developed Countries.

Why industrialisation matters

Through the adoption of the sustainable development goals (SDGs) – particularly on industry, innovation and infrastructure – the international community has recognised the importance of inclusive and sustainable industrial development for economic growth because of its multiplier effect on all economic sectors.

“Rarely has a country progressed and become developed without sustained structural transformation from an agrarian or resource-based economy towards higher productive agriculture and a sophisticated industrial or service-based economy. Industry, by providing decent jobs and by expanding the fiscal revenues needed for social investments, can boost capacity for inclusive development,” says a 2015 report to the China G-20 Development Working Group by the United Nations Industrial Development Organisations (UNIDO).

Regionally in SADC, the dti and other regional organisations are looking at three main areas of growth: food and agro-processing, mining and metals, and pharmaceuticals.

“These sectors cannot create jobs unless we achieve productive capability and the right environment with larger markets. Africa is currently highly fragmented with small markets and small economies. If we are able to build larger regional markets, through regional integration, then we could create regional trading blocks that have the economies of scale to catalyse industrialisation in various regions. This is the current focus of the regional economic communities like SADC, ECOWAS, and the EAC, and recent initiatives to create a continental-wide Free Trade Agreement,” says Gwynne Evans.

“In addition this requires a dramatically upscaled focus on improved infrastructure of all forms – road, rail, water and energy – to provide the conditions for growth.”

Regional integration in building large scale cross-border infrastructure that will unlock Africa’s industrialisation capabilities is one of the topics of discussion taking place at next month’s INFRASTRUCTURE AFRICA BUSINESS FORUM in Sandton, Johannesburg.

Nigel Gwynne-Evans, and a host of other African infrastructure experts will be attending and speaking at Africa’s biggest infrastructure symposium.

Africa 2016 – our time is now

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The world is getting more excited about Africa.

Dozens of countries are making meaningful investments in the continent, in everything from infrastructure and telecommunications to mining and manufacturing.

We only have to look at the sheer size and number of projects currently underwritten by China to get a fair idea of how the world is becoming increasingly enamoured of Africa as a development arena.

But the excitement really ought to start with us – the ones who actually live here. We experience and understand the potential of this place we call home.

This is one of the main principles of the African Union’s African Agenda 2063. It adopts a pan-African vision of “an integrated, prosperous and peaceful Africa, driven by its own citizens and representing a dynamic force in the global arena”.

In other words, it’s up to us.

Why is Africa the new land of opportunity?

To answer this one could simply observe that the International Monetary Fund has predicted that 11 of the top 20 fastest growing economies in 2017 will be African. The opportunities that this growth is and will continue creating are myriad and widespread.

We can dig deeper, however.

We can look at the underlying reasons for this rapid growth. Of course there have been surges in commodity prices – something which always benefits African countries. This is something well beyond our control, though; instead we need to focus on deliberate approaches and actions that have been successful.

Primary here are governmental initiatives to provide more friendly investment environments. These have mainly targeted corruption and armed conflict. In tandem with these have come regulatory reforms to make investment and the doing of business easier.

Countries have also begun placing a more pressing emphasis on the nurturing and development of what could be called home-grown talent.

This of course means improving the knowledge and skills of local populations, which has had a stimulating effect on the workplace.

Education unlocks the necessary potential

Knowledge is at the heart of everything. It underpins and informs our mind-sets, our approach to life and the actions we take. Knowledge breeds understanding, which is the key to both creating and recognising opportunity. The more you understand, the more you can achieve.

Of course the obvious way to impart this knowledge is through formal education. Much of Africa has long had effective education systems, but a more recent development has been the emergence of many more tertiary institutions, offering everything from university degrees to short courses designed to impart specific skill sets pertinent to particular career and workplace requirements.

Allied to this has been an expansion of the concept of education – from something that stops at a certain age or point in our lives, to a lifelong journey of ongoing knowledge acquisition, career advancement and personal development.

Access to education is crucial

Given the pivotal role that education plays, continued economic growth and development depend on providing access to education for as many people as possible. This is one resource that never becomes exhausted, no matter how much it is exploited, so to speak. Any meaningful investment in education always brings a guaranteed return in human development terms, which in turn drives positive societal evolution.

It becomes clear then that in developing countries like ours, a carefully planned and committed effort must go into ensuring that those who want to study can do so, at any point in their lives. This is the duty we have as education finance providers.

GE, Mara Group, Atlas Merchant Capital invest in infrastructure across Africa

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General Electric together with the Mara Group and Atlas Merchant Capital are leading an initiative to create a joint venture dedicated to investing in the highly underdeveloped African infrastructure sector.

The joint venture will seek to invest in infrastructure equity projects in selected countries throughout Africa.

With the African population set to rise to 1.5bn by 2025, the continent’s economic growth potential is significant. According to the Africa 2030 report, the overall sense is one of progress and optimism and that changes are sustainable, making Africa an attractive socio-economic focus in the coming years.

Africa presents high growth prospects in power generation, transport, oil & gas and other infrastructure areas including mining. The joint venture will focus on this broad set of segments by facilitating access to capital, thus offering the ability to execute and fully finance both advanced and early development stage projects.

The hurdles to address are rapid urbanisation, and a growing middle class devoid of infrastructure. More than 50% of our African nations including Nigeria, Kenya, Ethiopia, Tanzania and the DRC, don’t have access to electricity and an infrastructure investment of US$360bn in power production, power transmission, water storage, modern railways, port capacity and modern highways will be required until 2040. Furthermore, Africa needs to spend $90bn a year for the next decade in order to upgrade and maintain its existing infrastructure alone.

“This joint venture unifies three businesses with a strong commitment and expertise in infrastructure in Africa. The joint venture is our response to an integrated infrastructure approach in Africa. We are proud to partner with the expertise and talent of Atlas Merchant Capital and Mara Group, who have an extensive footprint in Africa, to address the necessities of the African continent. We have been significantly involved in social enterprises to date and will seek to further enhance and promote social and community development in the region to complement their expertise, knowledge and entrepreneurial spirit,” comments Jay Ireland, GE Africa President and CEO.

“Africa is a continent of 54 countries, but there is very low connectivity between them. Intra-African trade, a key driver for economic growth, represents only a fraction of Africa’s total trade over the past decade and this is largely due to a growing shortfall in infrastructure development. Through our joint venture with GE and Atlas Merchant Capital, we hope to tackle the funding deficit by creating a platform that has the power to truly change the lives of those living on the continent,” says Ashish J Thakkar, Mara Group Founder.

“We are delighted to see this partnership between three world-class players who, together, can have a real impact on infrastructure development in Africa,” says Akinwumi Ayodeji Adesina, African Development Bank President.

“We all know painfully well the imperative to fill Africa’s annual $50 billion infrastructure funding gap. Partnerships like these are a crucial part of the development agenda as we seek to promote social and economic development and fight poverty in Africa.”

The joint venture is well placed to act as a leading shareholder alongside sponsors of infrastructure projects and will use its relationships with lending banks and connectivity to power Africa and related institutions to meet the debt component of its funding.

Eskom tariff hike gives businesses the shivers

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Local ICT Infrastructure company BT-SA has warned that the 9.4% Eskom tariff hike will have a huge effect on businesses, especially if they fail to streamline their energy consumption.

Incorporating smart office or home technology into a new or existing structure makes it easier to reduce energy consumption and the carbon footprint a home or business creates.

More businesses and domestic consumers are turning to alternative energy sources to escape the high and seemingly ever-increasing tariffs.

There are a range of certified electrical solutions and alternative power solutions ranging from supportive supply to standalone back-up solutions to grid tie solar systems, generators, UPS and solar.

Bertie Strydom, BT-SA Managing Director, says it is widely accepted that electricity bills will spike higher than usual this winter.

“But it doesn’t have to be that way, there are plenty of simple ways to minimise the amount of energy needed to heat your business or home and save a bundle of cash doing it.”

Creating a smart office or home that optimises how and when it uses energy, can have a positive influence on your budget and also on the environment. This can be done by connecting the office or home services and devices into a system that allows you to control it from anywhere with a smart device.

A thermostat that adjusts its target temperature based on time of day, the day of the week, the season, the weather and how many people are in the building is just one piece of the bigger energy optimisation puzzle. A modern automation system can adjust window blinds on each side of the building based on the time of day to absorb solar heat or block it, depending on the temperature needs.

“When you’re on vacation, your appliances and water heater could automatically go into energy saver mode,” he adds.

BT-SA recommends that you should always consider precision cooling and heating that ensures intelligent energy saving, guaranteeing temperatures within the targeted environment.

“We offer accredited, professional electrical design, installation and maintenance services for both commercial and industrial applications. Comprehensive testing and inspection are performed before hand to establish the safety of the installation.”

“Remember to always ask your installer about the maintenance of any cooling or heating system. Our service level agreements are simple, measurable and realistic to manage no matter what industry it is applied to,” he concludes.

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