Africa holds major potential
for South African exporters
but it is not an easy market
of quick returns and
requires tenacity, f lexibility
and staying power.
This was the advice from
Boyce Lloyd, CEO of KWV,
to members of the Exporters
Club Western Cape recently
when asked about his
experience in fast moving
consumer goods (FMCG) on
the continent.
Lloyd, who was
responsible for the SAB
Miller African expansion
strategy for several years,
said understanding the
local market was crucial –
especially in Africa.
“That requires moving
out of the boardroom and
into the streets to meet
ordinary people. You have
to spend time in the market
talking to the people who
are going to
be purchasing
your products
or services,”
he said. “It is
in this process
where you
figure out
where the
weaknesses
and gaps
are. That is
where your
opportunity
lies. You have
to understand your market
and you have to understand
your customer.”
He said investing in
Africa had major potential
but it remained a complex
operating environment
that could be a logistical
nightmare at times.
“There are
a handful
of rules for
exporters
venturing
into Africa,
particularly
in the FCMG
space,” he
said. “Find
a good local
partner who
is reliable and
understands
your business.
Secondly, plan for the
unexpected and have good
back-up plans in place, and
thirdly make sure you have
the ability to stick it out,
because it does not happen
overnight in this market.”
He said in Africa
exporters needed to
understand that they would
have to carry some of the
risk and therefore it was
best to limit a product
portfolio to only a handful
of items.
“The African landscape
is complex enough without
adding to that complex,
unpredictability with
a range of services and
products,” he said. “It is best
to decide carefully what you
are going to focus on and
what products you want to
sell and what do you want
to achieve with them. Stick
to that focus regardless of
what noise is around you.”
Understanding the
local market requires
moving out of the
boardroom and into
the streets.
– Boyce Lloyd
