BUSINESS
P
lant and equipment owners,
more than any other suppliers,
are aware of the many challenges
facing them when operating across
borders. Political instability, security,
logistics, major delays at border posts and
foreign exchange controls are just some
risk factors that should be considered
before sending a fleet of equipment north
of the Limpopo River.
Moreover, insurance companies are
hesitant to provide the necessary peace
of mind when operating in often fragile
environments. South African companies
should not, however, be disheartened by
www.equipmentandhire.co.za
these challenges. At a time when the South
African economy is struggling to find its feet
after the Zuma years, deploying part of your
fleet to operate in other African countries
might just offer bigger rewards than waiting
for the next big tender in South Africa.
Look further than south
Traditionally, South African companies have
focused on the Southern African region.
According to Duncan Bonnett, director of
consultancy firm Africa House, 85% of
South African expansion into the rest of
Africa has been purely into the Southern
African Development Community (SADC)
and especially into South African Customs
Union (SACU) and countries like Zimbabwe,
Zambia, Malawi, Mozambique and the
southern parts of the Democratic Republic
of the Congo. “It is proof that where South
African companies do have preferential
access though, they do well. But we remain
most competitive and thrive in countries
close to us, where our products are well-
suited and well accepted, but outside of
the immediate neighbours we don’t have a
particularly strong footprint,” says Bonnett.
There are three factors that might change
this mindset in future: the African Free Trade
Area (AfCFTA); the growth prospects in the
APRIL 2020
17