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.”
