SA needs to get more serious about Africa

International companies are fast

unlocking the opportunities in

Africa and are not necessarily doing

it from what has traditionally been

the gateway into the continent –

Gauteng.

“South African companies in the

private and the public sector on the

other hand are not taking Africa

seriously enough and are relying on

the the old ways of doing business,”

says Duncan Bonnett of Whitehouse

& Associates. “The changes that are

happening are significant. Countries

are developing new corridors and

investing in infrastructure.”

Bonnett says unless companies –

specifically those in Gauteng – don’t

react to these changes they will

simply be left behind.

“Yes, there are several Gautengheadquartered

companies that

are very successful in the African

market and are going across borders,

prospering and turning challenges

into opportunities. But there are also

many companies

that do not

particularly want

to be engaged in

this market – and

if one takes the

domestic economy

into consideration

then we have to be

looking at Africa

and become far

more active on the

continent.”

His advice is

simple enough. “Roll up your sleeves

and get stuck in. The quicker the

better. The rest of the world is doing

it already. The changes happening

in Africa can be seen on just about

every level and not only in the big

cities. We are seeing more and more

developments in secondary cities.”

He said

construction of

roads, railways,

ports and airports

was clearly a

priority while

red tape and

bureaucracy were

being addressed.

“Operating

conditions are

becoming easier

every day. A few

years ago it would

have taken a day to travel the 300km

between Lubumbashi and Kolwezi as

the highway was nothing more than a

farm road,” he said. “Now it takes no

more than three hours or so to travel

the same distance as the road has

been upgraded.”

Bonnett said as infrastructure

continued to improve the movement

of goods in southern Africa would

also start to change. “The cost of

logistics in South Africa is a further

concern and the reason why there is

this movement away from Gauteng.

Why bring it in from Durban to

Gauteng before moving it further

onwards when it can come just

as easily from other ports such as

Mozambique?”

He said the reason for moving

cargo through Gauteng – the lack

of regional infrastructure – was fast

changing and would start to impact

more and more on local Gauteng

companies.

INSERT & CAPTION

The changes are

significant. Countries

are developing new

corridors and investing in

infrastructure.

– Duncan Bonnett