Retailers queueing up to enter the continent

South African businesses are seeking to expand their footprint in Africa despite frequent bad press and warnings of a gloomy economic outlook for the continent. This is the observation of Gerd von Mansberg, ATC Aviation country manager for South Africa, who noted that local retailers were “queueing up” to enter the continent with many having already established branch networks across Africa. “There is not yet a huge demand for airfreight into Africa but it will hopefully come. We must go into Africa and forget about the rest of the world, Europe, in particular,” Von Mansberg said. “In Europe the latest bad news is that the German machine is grinding to a halt and the economy is suffering,” he said. Apart from raw materials exported from Africa into Europe, Von Mansberg said markets were not promising, as consumers were feeling the pinch. “A housewife in Holland who would have bought a bunch of fresh flowers for her home every day, is now only buying them once a week. And when she does she will be looking for a cheaper bunch from Brazil. Europe, export wise, is not a happy place. But there is hope for Africa,” he said. Von Mansberg said the financial press had not presented a particularly positive message regarding Africa’s economic prospects but SA retailer investments on the continent painted a different picture. “There are businesses with growth, if you look at retailers like the Foschini Group, Shoprite and Woolworths. Accra has four Woolworths stores and there are already four Spurs (steak ranches) in Egypt,” he said. Von Mansberg said there was a sense among local retailers that they had developed the SA market and that it was now time to expand their footprint on the continent. “Airlines must refocus and pick out niche markets, of which Africa is the one with the most short-term potential,” he said. ATC Aviation, as the general sales agent for EgyptAir, Air Zimbabwe, Air Namibia, Airlink over border and with a sales office for Ethiopian Airlines, is poised for growth on the continent, he added. “The greatest industrial growth is in Mozambique where the petrochemical industry is growing at an enormous pace and flight frequencies have doubled in the last few years. If we take the UAE carriers and their ambitious growth in Africa there is a lesson in this,” he said. Von Mansberg added that Emirates had already announced a co-operative agreement with TAAG Angola Airlines and was reportedly also discussing its options in Mozambique. INSERT & CAPTION Airlines must refocus and pick out niche markets. – Gerd von Mansberg