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.”