East Africa business remains buoyant

GARETH COSTA AS THE African market grows in leaps and bounds, attracting many new participants, fourteen years in the African freight forwarding business have taught Incotrans many lessons, the most important of which is to receive payment up front. “We started operating in Africa when it was still a niche market and have developed a wealth of experience that keeps us a few steps ahead of new competitors in the market. Although overall trading conditions have improved a lot in recent years, in Africa, and particularly West Africa, you still need to be very selective about whom you do business with,” says Incotrans founder and MD Mauro de Rose. He reports that margins have eroded over the past three to four years, but business, especially into East Africa remains buoyant. Over the past year Incotrans has seen a decline in West African business, but East Africa, which makes up 65 - 75% of its business has more than made up for this slowdown. Using sea and air, Incontrans has seen strong demand for shipment of food, beverages, pharmaceuticals and machinery into the region. De Rose says that rand strength continues to make trade difficult. “Rand dollar has been below 7.00 a number of times this year, and the minute it kicks back to 7.10 or 7.20 we are bombarded by orders. It’s clear on current margins a 3-4% move makes an impact.”