{"id":7274,"date":"2021-06-14T07:17:04","date_gmt":"2021-06-14T07:17:04","guid":{"rendered":"http:\/\/www.condra.co.za\/?p=7274"},"modified":"2021-06-14T07:17:54","modified_gmt":"2021-06-14T07:17:54","slug":"success-into-africa-more-likely-with-obstacles-factored-in","status":"publish","type":"post","link":"https:\/\/condra.co.za\/en\/success-into-africa-more-likely-with-obstacles-factored-in\/","title":{"rendered":"SUCCESS INTO AFRICA MORE LIKELY WITH OBSTACLES FACTORED IN"},"content":{"rendered":"From a marketing perspective, Africa is often viewed as an entity: a cohesive whole to be targeted with a single, generalised approach.\r\n\r\nThe reality is different. Africa is the world\u2019s second biggest continent after Asia, containing 48 countries and six island nations. Spanning both hemispheres, its people speak an estimated one thousand languages with a further one thousand dialects. Climate and topography range from desert to equatorial rainforest, while economies include failed states as well as success stories similar to those in the developed world. It follows that any marketing approach would need to include segmentation by language, economic model, level of industrialisation, GDP per head of population and other key variables.\r\n\r\nOne company notably successful throughout Africa south of the Sahara is crane and hoist manufacturer Condra. Headquartered in South Africa, the company is recognised as the leader in high-lift installations across the continent\u2019s west, central and southern regions.\r\n\r\n
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Sophisticated circuitry monitoring and controlling a Condra overhead crane, the yellow girders of which can be seen on the right, with the hoist (also yellow), above them.<\/p><\/div>\r\n\r\nManaging director Marc Kleiner predicts that African sales for his company\u2019s products will continue in parallel with cyclical, Chinese-driven demand for minerals and other commodities. However, he points out that the risk facing exporters into Africa is the temptation to nationalise.\r\n\r\n\u201cThere is an understandable desire for any government to assert dominance over foreign-owned interests, especially a productive mine. But government ownership of assets can result in inefficiencies, and they risk moral hazard. Generally, I would say that any company investigating an African country as a potential market should factor into that consideration the likelihood of nationalisation.\u201d\r\n\r\nKleiner added that he would like to see improved access to remote mines. He pointed to a recent crane order from Cameroon, where the road giving access cannot be negotiated by abnormal-load vehicles. The only way to deliver this crane will be to design it for containerisation, splicing girders almost 30 metres in length for bolting together on site at the mine.\r\n\r\n\u201cIt\u2019s quite common for us to do this, but it does increase the price,\u201d he observed.\r\n\r\nIn South Africa, Condra\u2019s two factories are busy with local contracts as well as orders from beyond the country\u2019s borders. Eight coil-handling cranes for a new vehicle plant are under manufacture, together with a ninth and tenth for an automotive rubber factory.\r\n\r\n

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Typical Condra overhead crane under test.<\/p><\/div>\r\n\r\nAsked what Africa could do better within its lifting equipment industry, Kleiner answered:\r\n\r\n\u201cAfrica could do better by taking more pride in the fact that it is Africa and not Europe. By this I mean that customers requesting the latest electronic refinements in use abroad should recognise that these are often poorly suited to the power outages and fluctuations that are typically African. That said, we continue to give the customer the machine performance that he wants, while engineering the crane to be as immune to these problems as possible.\u201d\r\n\r\nKleiner also noted that Africa\u2019s sporadic armed insurgencies remain problematic:\r\n\r\n\u201cBeyond the tragedy and fear, unpredictable attacks make business difficult,\u201d he said. \u201cWitness the recent attack by ISIS in Palma, northern Mozambique. One of the oil companies there declared force majeure because of that attack, so now we have the crane that they ordered stored here at our factory until the situation can be normalised.\u201d\r\n\r\nKleiner went on to comment on pricing, explaining that Condra does not try to win contracts through price-cutting because the company has invested too much in its products for this to be a viable approach.\r\n\r\n\u201cWe don\u2019t outbid,\u201d he explained. \u201cWe have realised over time that we don\u2019t want to compete against cheap products. Our success bears out the fact that if a customer knows what he wants and has experience of other manufacturers, he will eventually come to Condra. The natural flow of professional engineers around the world has led to many re-contacting us to become repeat customers, and this has gradually given us more of the world market. Our growth into Canada and Australia has been largely based on people who have previously experienced the reliability of our products and insisted on Condra.\u201d\r\n\r\nLooking to the future of the African lifting equipment market, Kleiner predicted a continuation of present circumstances.\r\n\r\n\u201cI think that it will be more of the same,\u201d he said. \u201cIt will remain possible to succeed, but it will remain difficult. However, Condra was born African and remains African. We understand Africa, so our success is likely to continue.\u201d\r\n\r\n

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Condra\u2019s managing director Marc Kleiner.<\/p><\/div>\r\n","protected":false},"excerpt":{"rendered":"From a marketing perspective, Africa is often viewed as an entity: a cohesive whole to be targeted with a single, generalised approach. The reality is different. Africa is the world\u2019s second biggest continent after Asia, containing 48 countries and six…","protected":false},"author":4,"featured_media":7280,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[19],"tags":[],"class_list":["post-7274","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","entry","has-media"],"_links":{"self":[{"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/posts\/7274","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/comments?post=7274"}],"version-history":[{"count":2,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/posts\/7274\/revisions"}],"predecessor-version":[{"id":7291,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/posts\/7274\/revisions\/7291"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/media\/7280"}],"wp:attachment":[{"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/media?parent=7274"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/categories?post=7274"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/condra.co.za\/en\/wp-json\/wp\/v2\/tags?post=7274"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}