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.”