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Telecom operators must find smarter ways to serve data-hungry population


Data consumption continues to grow at an incredible pace globally. Over 90% of all the data in the world was created in the past two years, and the total amount of data being captured and stored by industry doubles almost year on year.

It is expected that by 2020, the amount of digital information in existence will have grown from 3.2 zettabytes today to 40 zettabytes.  Every minute we send 204 million emails, generate 1,8 million Facebook likes, send 278 thousand Tweets and up-load 200 thousand photos to Facebook.

Coupled to this, cellular phones are now even more accessible to the general population than they ever have been, with 17.9% of rural households in South Africa alone accessing the internet from mobile devices and 30.8% of South African households using mobile devices to access the internet, according to Statistics South Africa’s General Household Survey report published in June 2014.

The sheer size of the African continent, coupled with the fact that Sub-Saharan Africa’s population is rising faster than the rest of the world (Population Reference Bureau predicts that Africa’s population will double to 2.4 billion by 2050) means that there are already several hundred million internet users who are demanding internet performance, and this number will rise at an inconceivable pace.

Peter Greaves, Aurecon’s Expertise leader for Data & ICT Facilities comments: “The impact of this is that telecom operators will have to find better, smarter ways to serve a data-hungry population throughout Africa. Corporations and governments are also becoming aware of the increased need for data centres and the fact that outsourcing these services allows them to focus on their core activities. Concerns about unreliable power and inadequate security can similarly be delegated to a dedicated third party that will guarantee the required uptime and data integrity.”

He adds: “While it’s true that data centres can be remote, countries (especially African countries) need to start looking at more local solutions in order to ensure data sovereignty and efficient network performance.  This demand will drive a significant data centre build-out in both East and West Africa over the next 20 years and now is the time to start reassessing the number of data centres in Africa, where they are located and how we can create scalable solutions to meet future data needs.”

“There are many complexities involved with building data centres that become long-term assets. Creating long-term, dynamic, scalable data centres in Africa will require us to draw on the key lessons learned from around the globe as well as the knowledge from local experts in the field,” believes Greaves.

Just some of the key considerations involved in creating long-term data centre assets are explored below.

Sustainably minded design

Data centres are significant users of energy and are estimated to consume some 2% of the world’s energy. Today’s data centre owners are placing a greater emphasis on the performance and even official rating of their centres. 

In Africa, passive design measures which draw on the local climate to cool data centres can be employed in order to reduce cooling needs. Using free cool air at night to pass through the conditioning systems; or exploiting ground-source cooling are both mechanisms that can make a significant difference to the electricity that is needed to cool a data centre.

“Better performance translates into reduced operational costs, ultimately improving the overall competitiveness of a data centre,” believes Greaves.

Site selection – withstanding natural disasters and communication infrastructure is key

Critically, power outages at these centres can have a significant effect on business operations – compromising crucial business information, with severe consequences. In line with this, data centre site selection in Africa needs to take into account the likelihood of natural disaster conditions such as earthquakes, tsunamis, volcanos, heavy rain, high temperatures, fires, epidemics and floods. Modern data centres can be built and retrofitted to withstand natural disasters, but the overall impact of a natural disaster still needs to be considered during the site selection process.

In addition, data centres need to have significant communications infrastructure from a variety of sources in order to minimise the risk of interruptions and failure, which could have a major impact on a service provider’s customers. Bandwidth availability and the distance of existing IT infrastructure from data centres, such as marine IT links,  needs to be planned to ensure new data centres are efficient and economically viable.

Skilled data centre operators

The people who manage and work in data centres need more than IT skills. A successful data centre requires a culmination of IT, facilities, data security and storage skills, to name but a few. There are also a number of compliance and regularity concerns that need to be adhered to and the right people, with the right skills, are needed for these critical positions.

Why Aurecon?

Aurecon has been involved in data centres for over 15 years, including forming part of the project teams on some of the largest data centres around the world. This international experience, coupled with our local engineering experience of conditions throughout Africa, means that we have the skills to avoid the pitfalls that many other countries have seen when planning and building new data centres.

Our team of over 500 building specialists as well as our local know-how ensures that we are able to adapt international best practice to produce local excellence locally.

“The increasing demand for datacentres in Africa will lead to an inspiring, large scale build of data centres and usher in a digital revolution in Africa,” believes Greaves.

“Done right, the evolution and expansion of data centres will enable the globalisation of the African continent. If these are situated close to reliable, expandable data links linking the population of Africa to all parts of the world in real time, they will accelerate learning, promote ease of business and allow African people as well as businesses to expand their knowledge and corporations. These are just some of the benefits that the continent can look forward to in the future if data centres are planned properly today.”

Distributed by APO (African Press Organization) on behalf of Aurecon.
 

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Business

Pula smiles at COVID-19 vaccine

25th November 2020
COVID-19 vaccine

A squeaky and glittering metaphoric smile was the look reflected from the Pula against the greenback this week and money market researchers lean this on optimism following Monday’s announcement of another Covid-19 vaccine which is said to have boosted emerging market economies.

With other emerging market currencies, the Pula too reacted to optimism and fanfare on the new Covid-19 vaccine against the weakening US dollar which has been losing its shine since the uncertainty laden US elections.

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Business

Choppies high on JSE rollercoaster volatility

25th November 2020
CHOPPIES

After bouncing back into the Johannesburg Stock Exchange (JSE) last week Friday, following a year of being in the freezer, the Choppies stock started this week with much fluidity.

Choppies was suspended in both the Botswana Stock Exchange and its secondary listing at the JSE for failure to publish financial results. Choppies suspension on Botswana Stock Exchange was lifted on 27 July 2020. On Friday last week, when suspension was being lifted, Choppies explained that this came into fruition “following extensive engagement with the JSE.”

Choppies stock, prior to suspension, hit a mammoth decline in value of more than 60 percent, especially in September 2018. Waking from a 24 month freezer, last week the Choppies share price was at R0.64 and the stock did not make any movement.

However, Monday was the day when Choppies stock moved vibrantly, albeit volatile. Choppies’ value was on a high volatile mood on Monday, reaching highs of 200 percent. At noon, the same Monday, the Choppies share had reached R1.05. Before taking an uphill movement, Choppies stock slightly slipped by 2 cents. But the Choppies share rode up high and by lunch time the stock had reached the day’s summit of R2.00 and that was at 13:30 when investors were buying the stock for lunch.

The same eventful Monday saw gloom on the faces of Choppies rivals, when Choppies gained by 220.31 percent around lunch time its rivals in the JSE Food & Drug Retailers sector were licking wounds. Spar lost 2.94 percent, Pick Pay fell by 2.43 percent, Shoprite 7.52 percent and Dis-Chem 1.98 percent. The only gainer was Clicks by a paltry 0.51 percent.

In an interview with BusinessPost, Choppies sponsors at the JSE PSG Capital Managing Director Johan Holtzhausen explained that the retailer’s stock was in high demand after a long suspension. He said when a company list or a suspension is lifted the market needs to find itself on the pricing of the share.

“Initially when the suspension was lifted there were more buyers than sellers. As far as we could see this created a shortage of shares so to speak and resulted in the price at which the shares traded going to R1.20 and eventually R2.05 before finding its level around R0.80 sent from a JSE perspective.

This is marked dynamics and reflect that there are investors that are positive about the stock in the long run. This is a snapshot over a short period and one requires a longer period to draw further conclusions,” said Holtzhausen in an interview talking about the Choppies stock.

On Monday this week where the Choppies value grew by 200 percent, the stock took a turn looking down, closing the day at R0.87 from a high of R2.00. According to local stockbroker Motswedi Securities on Monday while there was no movement by Choppies in the local stock exchange as the retailer appeared on the board as 141,000 shares traded at P0.60 each.

However in Choppies’ secondary listing the stock price rallied to over 200 percent during intraday trading on Monday before losing steam and declining to around R0.87 share.

Before press yesterday Choppies opened the market with the stock starting the day at R0.80 then went flat for few hours before taking a slide downward, dropping 5 cents in 30 minutes. Choppies then went flat at R0.75 for 50 minutes yesterday before going up at 10:20 am where it nearly recovered the open day price of 80 cents, but was shy of 1 cent. From 79 cents the price went flat until noon.

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Business

Foschini-Jet merger, a class and rivalry conundrum dissection

25th November 2020
Foschini

Competition and Consumer Authority (CCA) has revealed that in its assessment of the Jet take over by Foschini, there were considerations on possible market rivalry and a clash in targeted classes.

According to a merger decision notice seen by this publication this week, high considerations were made to ensure that Foschini’s takeover of Jet is not anyhow an elimination of rivalry or competition or if the two entities; the targeted and the acquiring enterprise serves the same class of customers or offer the same products, to elude the anti-trust issues or a stretch of monopoly.

The two entities are South African retailers whose services stretched to Botswana shores.  Last month local anti-trust body, CCA, received an acquisition proposal from South African clothing retailer, Foschini, stating their intentions to take-over Jet.

South African government’s Business Rescue Practitioners earlier this year after finding out that Jet’s mother company, Edcon, is falling apart, made a decision that Foschini can buy Jet for R480 million. This means that Foschini will add Jet to its portfolio of 30 retail brands that trade in clothing, footwear, jewellery, sportswear, homeware, cell phones, and technology products from value to upper market segments throughout more than 4085 outlets in 32 countries on five continents.

However the main headache for the CCA decision which was released this week, is distinguishing the targeted and the acquiring entity businesses and services.

When doing a ‘Competitive Analysis and Public Interest’ assessment, CCA is said to have discovered that Foschini is classified as a “standard retailer” which targets middle-to-upper income consumers and it competes with stores such as; Truworths and Woolworths. The targeted entity, Jet, is on the lower league when compared to its acquirer, it serves customers of lower classes and is regarded as a discount/value retailer targeting lower income consumers or a mass market. This makes Jet to be in direct competition with Ackermans, Pepkor, Cash Bazaar and Mr Price.

“Therefore, a narrower view of the market is that Foschini through its stores trading in Botswana is not a close competitor to Jet. Additionally, there exist other major rivals who will continue to exercise competitive constraints on the merged enterprise post-merger,” concluded CCA this month.

The anti-trust body continued to explain that in terms of the Acquisition of a Dominant Position, the analysis shows that the acquisition of the target business by Foschini Botswana will result in an insignificant combined market share in the relevant market.

This made CCA reach to a conclusion that there is no case of an acquisition of a dominant position in the market under consideration or any other market on the account of the proposed transaction.

What supports the merger according to CCA is that it is in compliance with regards to ‘Public Interest Considerations’ because the findings of the assessment revealed that the transaction is as a result of the need for a Business Rescue by the target enterprise. This is so because in the event that the proposed transaction fails, it will translate into the loss of the employment positions at the target business.

“On that note the Authority (CCA) found it necessary to ensure that the proposed merger does not result in any retrenchments or redundancies. In light of this, the assessment revealed the critical need to protect the employees of the merged entity from possible merger specific retrenchments/ redundancies,” said CCA.

Before making a determination that the recently proposed transaction is not likely to result in the prevention or substantial lessening of competition or endanger the continuity of the services offered in the relevant market, CCA said it then moved into a concern for public interest which is a protection enshrined in the Competition Act of 2018.

CCA’s concern was mostly loss of livelihood or employment by 126 Batswana workers at Jet stores, stating that possible retrenchments or redundancies may arise as a result of implementation of the proposed merger.

Much to the desire of trade union or labour movements in Botswana and across Southern Africa where the Jet stores are stemmed-who also raised concerns about the retail’s workers job security- CCA subjects Foschini to keep the target entity 126 workers.

“There shall be no merger specific retrenchments or redundancies that may affect the employees of the merged enterprises. For clarity, merger specific retrenchments or redundancies do not include (the list is not exhaustive): i. voluntary retrenchment and/or voluntary separation arrangements; ii. Voluntary early retirement packages; iii. Unreasonable refusals to be redeployed; iv. Resignations or retirements in the ordinary course of business; v. retrenchments lawfully effected for operational requirements unrelated to the Merger; and vi. Terminations in the ordinary course of business, including but not limited to, dismissals as a result of misconduct or poor performance,” said CCA.

CCA also orders that Foschini informs it about all the details of 126 Jet employees within thirty (30) days of the merger approval date. CCA should also know information of when Foschini is implementing the merger, within 30 days of the approval date.

Other conditions include Foschini sharing a copy of the conditions of approval to all employees of the Jet or their respective representatives within ten (10) days of the approval date.

“Should vacancies arise in the target, the merged enterprise shall consider previous employment at one of the non-transferring Jet stores to be a positive factor to be taken into account in the consideration of offering potential employment,” said CCA.

According to CCA, in cases of any job losses, for the Authority to assess whether the retrenchments or redundancies are merger specific, at least three months before (to the extent that this deadline can be practically achieved and in terms of the prevailing and legally required employment practices) any retrenchments or redundancies are to take place, inform the Authority of:  i. The intended retrenchments; ii. The reasons for the retrenchments; iii. The number and categories of employees affected; iv. The expected date of the retrenchments.

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