SA businesses face serious competition

Africa has seen some dramatic changes in the past year with some major projects and developments under way. Paul Runge, a project specialist working across Africa, says it is important that South African businesses realise that they are up for some serious competition when it comes to Africa. “As corridors and ports are being developed in neighbouring countries, there is physically a move away from South Africa. Gone are the days when Africa was our backyard and we could just play at our leisure. If we don’t wake up we will have had our lunch and dinner eaten for us.” According to Runge projects to look out for in 2011 include the power projects across the continent as well as the expansion in the Zambezi Valley. “The Southern Angola Rollout in the Lobito Corridor as well as the port developments are all indicators of major investment in the continent.” Runge says already South African exporters (especially in the manufacturing and distribution industries) are reporting increased sales into Africa, but at the same time are seeing a loss of market share. “This is because projects are ongoing everywhere and development is growing at an increased speed. But it has become a global game and is no longer exclusive to South Africa.” He says a competitive advantage to a company is to know how donors work in Africa. “One cannot differentiate projects from funding in Africa and it is therefore important that exporters understand the dynamics and systems of the donor programmes.”