IFS has announced that it has signed a $1.2m deal with the Energy Utility Corporation Limited (EUCL) in Rwanda. EUCL is a subsidiary of the Rwanda Energy Group (REG) Limited that generates, transmits and distributes electrical energy across Rwanda. Rwanda is rapidly expanding its electrical supplies. This investment represents more than 1% of the loan by the World Bank to improve electricity supply to the country.
The electrical supplies in Rwanda are now rapidly expanding following the end of the civil war. The Giciye II Micro Hydro Power Plant in Nyabihu district has recently doubled its output. More projects to increase generation and extend the distribution network are ongoing. With rapid expansion comes challenges. As EUCL grew, it realised it needed to improve its internal systems. After an extensive search of solutions it selected IFS, with IFS partner Fluentgrid helping with the implementation. This is not the only software delivery project undertaken by EUCL. Fluentgrid is delivering of software as EUCL seeks to modernise its back office operation. The IFS solution will provide financials, payroll, supply chain management, human resources, and project management.
Fluentgrid will almost certainly be deploying its mPower Software to EUCL. Implementing the solution to improve the operational capability at the company. EUCL Head of ICT, Ms. Noella Mupole said: “We were looking for a modern business management solution that could support enhanced organisation control and aid timely decision making thereby fostering efficiency, transparency, and accountability throughout the organisation. We chose IFS Applications because it matched best with our requirements in terms of functional breadth, scalability, and user-friendliness.”
Noticeable by its absence
One suspects that one of the reasons that IFS was chosen over the utility solutions of SAP and Oracle was cost. Mupole chose to ignore what is often the key reason for selection. This is not a small deal for IFS and it is noticeable that IFS South Africa managing director Gawie van der Merwe mentions cost as factor for success. Van der Merwe commented: “We are honoured that EUCL has chosen IFS to support its core business processes. IFS Applications is a cost-effective, full enterprise solution that can be used to manage new infrastructure development, monitor programme and project progress and, equally important, leave an asset management legacy for on-going plant and facility maintenance. We are looking forward to supporting EUCL improve efficiencies across its organisation.”
Fluentgrid are implementing the solution across 33 locations and supporting the 1,300 employees that EUCL currently has. That number is likely to grow significantly over the next few years. Especially as the company expands the geographical reach of electricity in Rwanda.
Conclusion
This is an important win for both IFS and Fluentgrid. Importantly it increases their share of the utilities market. For Fluentgrid who achieved a place on the Magic Quadrant for Utilities Customer Information Systems 2016 for the fourth consecutive year. SAP and Oracle Utilities dominate the market. Winning deals such as this one will allow them to improve their software and start to compete effectively in even larger deals.
IFS began in the nuclear power industry. Since 1983 it has consistently delivered solutions to utility companies. As a result the win is a boost to the company as it starts its new journey in private equity ownership. Additionally, if the partnership with Fluentgrid is successful, it will see more and larger opportunities opening up for the Swedish based company.