Slower – but opportunities still there for the taking

If ever there was a defining moment, for Intraspeed it was October last year. “Until then we had a good run in our exports into Africa across the board,” Intraspeed managing director Jade da Costa told FTW. “We were involved in a lot of mining business before the mining shut-down and there was a lot of exploration, so it was buoyant for us. “We then slowly saw the global economic doom starting to hit certain industries quite severely. Businesses in East Africa that were funded by large banks were put on hold, as were some of the construction projects, and the result was a business slowdown.” Since October it’s been a tough few months for Intraspeed along with the rest of the industry – and Da Costa expects more of the same for the year ahead. “A lot of the mining houses have stopped their exploration, existing mines have slowed down, and a few mines in the DRC that were completely closed and due to come back on line in April will now only return to productivity towards the end of the year,” said Da Costa. All of which translates into a difficult business climate, particularly for logistics operators into the region. But it’s not all doom and gloom. “There is still a lot of cash business available in Africa which is one of the bonuses in doing business on the continent,” Da Costa told FTW. “A lot of the business wasn’t geared by financial institutions abroad and that is still continuing. “There’s also ongoing development in West Africa, where the telecoms business is still booming, with groups like Zain on a big drive to get more market share throughout Africa.” And although there has been some downward movement in the region, it remains the only continent at present where there will be growth going forward, in Da Costa’s view. “Perhaps not a lot but there will be growth.” And this he attributes to continued foreign investment, a fairly buoyant construction outlook and railways moving ahead in East Africa. “Niche markets will continue to provide opportunities, and the answer is to remain positive.”