Niche marketing the key to growth - THL

“The days are gone when you can go in
and make a quick buck,” says Anthony Lee,
managing director of Transport Holdings
Limited. While there are few barriers to
setting up operations in the country,
volumes are typically between two and
five per cent of the South African market.
“You can talk Botswana, Botswana,
Botswana but you need to understand that
the volumes are so, so small.”
The answer, in Lee’s view, is targeting
niche markets. “This is what we have done
with all our companies, and the natural
organic growth of each has been good for
us.
“Botswana is on a relatively good
upward curve with volumes recovering
over the last 18 months following two
devaluations and the introduction of
VAT in 2002,” says Lee. Volumes have
also been driven by growth in the mining
sector and spurred on by a number of
construction projects around the country.
Industry-wide growth brought on by
overarching restructuring in the beef
sector will put money in the hands of the
people, says Lee. “The cattle industry is
the biggest wealth distributor amongst
the people, with money going directly
into rural communities.” After years of
fundamental structural problems within
the industry, causing depressed prices, a
Cattle Producers’ Association was formed
to exert pressure on government to
restructure the sector. The net effect is the
price of beef has risen 80% in the past 18
months. “And this is only the start. If all
comes together, there could be a trebling
in export outputs for the industry.”
Botswana’s real growth is expected to
rocket in the two to five year time frame,
adds Lee, with a number of nickel, copper,
coal and energy projects in the pipeline. “I
don’t think there will be anything to delay
this growth,” Lee believes
He cites a lack of a real Common
Customs Union as a problem, despite a
statutory body of this nature in place.
Different tariff codes between countries also make things difficult. Repair and return items are difficult to handle on the South African side. "Bureaucracy is the biggest factor affecting inefficiencies, but this is nothing that can't be overcome in time," says Lee.
"Botswana is a country that works. There is not massive corruption, not just because it's taboo.'
Transport Holdings is an associate of Imperial Logistics and has a number of operational companies that work in the various niche arenas in Botswana's economic landscape. It incorporates Truck
Africa’s line haul and mining consolidation
operations, while Express Cartage offers
clearing and forwarding services with
warehousing, consolidation and national
distribution of general cargo.
“The petroleum sector is a key growth
area for us, so we have a strategic fuel
company to cover our bases,” adds Lee.
Petrologistics is the dedicated petroleum
business, the result of a merger of Truck
Africa Botswana & Fuelogic Botswana.
“It’s one of the niche focal points for the
growth of the group.”