Multilog sets its sights on expansion

China’s influence on African commodity prices is positively affecting even businesses without direct Chinese connections. “Business has been rather good and this is on the back of the price of gold. China has been at the forefront of driving the price of gold,” Simon Busang, managing director of Johannesburgbased Multilog Solutions, told FTW. Multilog Solutions is a medium-sized consolidator, assembling multiple consignments from various clients and moving by sea or air. In operation in West Africa since 1949 and almost exclusively aimed in recent years at supplying the needs of the Canadian, Australian and South African-owned gold mines of Mali, the company plans to broaden its operations based on its Malian template, made successful by gold’s Chinese-induced good fortunes. “We’ve established the way of working within the region, and we intend to expand. Having recently held a marketing strategy meeting, we are focusing now on other countries within the region. We provide procurement and logistical services to mining companies in West Africa, and we consolidate anything from consumables to line items – your machinery, excavation machines and so on that are sent to port at Cote d’Ivoire or Senegal but the final destination is Mali. Most of the region’s gold mines are there. We will be expanding our routes,” said Busang. Capital reserves boosted by gold prices allow Busang’s business to take advantage of several factors that have combined to boost the shipping business and indeed all commerce in the region. “Doing business on the Africa continent has the advantage that the capital expenditure outlay is not as massive as developed economies like Europe. Africa is the largest growing continent economically, with an expected growth of 7-9%, and more stable government assists. Fairly recently we experienced a coup in Mali and the regional economic bloc came together and pushed out the tyrant,” said Busang. Taking advantage of the gold price, mining operations are producing more, boosting imports from South Africa and elsewhere. “We source goods from all over the world, not necessarily from South Africa. The mining technology is from all over the globe, some from China going to West Africa,” said Busang. That completes the circle in terms of the Chinese connection. Chinese demand drives up the gold price, and Chinese-made heavy machinery is brought in to excavate the desired mineral. Caption: Simon Busang ... ‘China at the forefront of driving the price of gold.’