PAVLO'S PERSPECTIVE: Investing in Africa with grace and commitment
by Pavlo Phitidis,
2015-05-05 06:29:57.0
WITH seven of the 10 fastest-growing economies in the world, Africa is an exciting investment opportunity despite the slump in commodity prices.
An African bull would argue that the slump will redirect investment into a more inclusive economy. This will develop a ready, able and capable untapped market — creating the single-biggest opportunity to lift SA’s pedestrian growth rate by an additional 200 basis points.
SA remains the most viable destination from which to enter Africa. Its infrastructure supporting a world-class banking, retail, education, health, environment and legal system makes for a managed entry into Africa. Yet, we seem intent on eroding this position.
We have lost market leadership in technology. There is wholesale disinvestment in mining. Energy uncertainty, coupled with aggressive cost escalation, hampers our economy. Innovative policies could have been instituted to maintain consistent and affordable energy supply.
Our relations with our African brothers and sisters seem to be at a low point.
Are our greatest strengths becoming our greatest weakness?
Tackling the African continent with grace and commitment is Bolloré Logistics. A French, family-owned business for multiple generations, Bolloré has focused on four strategies to achieve its leadership in logistics performance on this tough continent.
It has invested extensively in infrastructure to manage logistics risk levers. Concessions have been secured in ports, rail terminuses, transport corridors and airports — the failure points in logistics where transport modes are switched.
Their focus on specific sectors has developed deep expertise and the right relationships. Their tight focus allows them to source and secure global experts. Based in SA, Bolloré is set to continue growing their African interests.
The experts they source and employ are scarce. The qualifications they seek go beyond degrees — multilingualism in Africa’s commercial languages; experts in the sectors that Bolloré focuses on and entrepreneurial in problem-solving capabilities. The best people help build the best businesses.
In support of this strategy, Bolloré uses Expats On The Globe, founded and led by two dynamic entrepreneurs. Their integrated service of immigration and relocation makes for a smooth on-boarding of people with key skills and capabilities to Bolloré.
Immigration has contributed to building the most innovative economies in the world. Skills, coupled with an entrepreneurial mind-set, creates abundance in any economy or environment where scarcity once existed. Tomatoes farmed in the Negev Desert is one of many examples.
The apprehensions skilled expats face when offered positions in SA are well founded. The internet carries a litany of bad news about the country, which is compounded by inconsistent policies adopted by SA’s embassies abroad — making the immigration process enormously frustrating.
Multinationals locating to SA with their skilled staff should be welcomed. Global entrepreneurs with key skills should be welcomed.
South African companies expanding abroad needing key global skills should be welcomed. Small businesses wanting to bring in skills in new sectors should be welcomed.
The most valuable commodity we can hope to mine are skilled, entrepreneurial people. In an environment of scarcity, they create opportunity and abundance. The growth of Bolloré in Africa is a testament to this.
A humbler SA could define a value proposition to the world that would turn it into a winning nation.
• Phitidis is CEO of Aurik Business Incubator, director of Aurik Enterprise & Supplier Development, entrepreneurship commentator on Talk Radio 702 & 567 Cape Talk and presenter of The Growth Engines.
Pavlo Phitidis. Picture: SUPPLIED
WITH seven of the 10 fastest-growing economies in the world, Africa is an exciting investment opportunity despite the slump in commodity prices.
An African bull would argue that the slump will redirect investment into a more inclusive economy. This will develop a ready, able and capable untapped market — creating the single-biggest opportunity to lift SA’s pedestrian growth rate by an additional 200 basis points.
SA remains the most viable destination from which to enter Africa. Its infrastructure supporting a world-class banking, retail, education, health, environment and legal system makes for a managed entry into Africa. Yet, we seem intent on eroding this position.
We have lost market leadership in technology. There is wholesale disinvestment in mining. Energy uncertainty, coupled with aggressive cost escalation, hampers our economy. Innovative policies could have been instituted to maintain consistent and affordable energy supply.
Our relations with our African brothers and sisters seem to be at a low point.
Are our greatest strengths becoming our greatest weakness?
Tackling the African continent with grace and commitment is Bolloré Logistics. A French, family-owned business for multiple generations, Bolloré has focused on four strategies to achieve its leadership in logistics performance on this tough continent.
It has invested extensively in infrastructure to manage logistics risk levers. Concessions have been secured in ports, rail terminuses, transport corridors and airports — the failure points in logistics where transport modes are switched.
Their focus on specific sectors has developed deep expertise and the right relationships. Their tight focus allows them to source and secure global experts. Based in SA, Bolloré is set to continue growing their African interests.
The experts they source and employ are scarce. The qualifications they seek go beyond degrees — multilingualism in Africa’s commercial languages; experts in the sectors that Bolloré focuses on and entrepreneurial in problem-solving capabilities. The best people help build the best businesses.
In support of this strategy, Bolloré uses Expats On The Globe, founded and led by two dynamic entrepreneurs. Their integrated service of immigration and relocation makes for a smooth on-boarding of people with key skills and capabilities to Bolloré.
Immigration has contributed to building the most innovative economies in the world. Skills, coupled with an entrepreneurial mind-set, creates abundance in any economy or environment where scarcity once existed. Tomatoes farmed in the Negev Desert is one of many examples.
The apprehensions skilled expats face when offered positions in SA are well founded. The internet carries a litany of bad news about the country, which is compounded by inconsistent policies adopted by SA’s embassies abroad — making the immigration process enormously frustrating.
Multinationals locating to SA with their skilled staff should be welcomed. Global entrepreneurs with key skills should be welcomed.
South African companies expanding abroad needing key global skills should be welcomed. Small businesses wanting to bring in skills in new sectors should be welcomed.
The most valuable commodity we can hope to mine are skilled, entrepreneurial people. In an environment of scarcity, they create opportunity and abundance. The growth of Bolloré in Africa is a testament to this.
A humbler SA could define a value proposition to the world that would turn it into a winning nation.
• Phitidis is CEO of Aurik Business Incubator, director of Aurik Enterprise & Supplier Development, entrepreneurship commentator on Talk Radio 702 & 567 Cape Talk and presenter of The Growth Engines.
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