Bigger companies shun smaller projects

There is much opportunity to streamline the supply chain in Africa especially when it comes to smaller operations, says Paul Runge, managing director of Africa Project Access. According to Runge there are no set systems to address the needs in Africa, with many smaller projects having very haphazard set ups. And with supply just not up to standard, many projects are happening all too erratically. A recent trip to central Mozambique, where various hotel projects are under way, proved this once again, he said. “I was shocked to see how a few guys with a truck or five are trying to get to everything. It is all a mad scramble to supply the demand and very rudimentary,” Runge said. While he understands that many big companies are not interested in the smaller contracts, it does raise the question – what happens to the smaller projects? “Why must it be complete chaos? What has to happen is a proper needs analysis, which allows companies to be pro-active and address the issues at hand. It is unnecessary for people to be waiting for stuff all the time.” According to Runge there have been plenty of complaints about supply chain demand in various countries, proving that there is a need to address the supply chain. These complaints even came from the copper belt area where activity was huge until the economic downturn. “There were many complaints about the supply chain. It is not a well-oiled machine that runs smoothly.” And, says Runge, while South Africans are remaining inwardly focused due to the many projects at home, neighbouring countries are picking up the slack. “There are so many special projects under way in South Africa that are big and grand that many companies are not going to go and look for projects in Africa where there is often no infrastructure.” He said countries such as Namibia had, however, identified opportunities and were now a preferred option when moving cargo into Angola, especially the south. “It is a very viable option as a source of supply into Angola as they are efficient and the ports and airports are doing well. The Namibians have worked hard at supplying Angola.” Runge said while it was understandable that some operators were hesitant to become involved in Africa’s smaller projects, there was also much opportunity. “Africa is the only continent still showing positive growth, so it is no wonder the entire world is interested in the continent. Africa is a treasure trove of resources and commodities with much opportunity. But there is no denying the intrinsic need for a far smootherrun and operated supply chain.”