SEW-Eurodrive is building on its presence in Tanzania, its main hub in eastern Africa, by opening a new office in Kenya, and commencing with a recruitment drive for Burundi and the DRC.
East Africa represents a major growth area for the drive and automation technology specialist, SEW-Eurodrive South Africa MD, Raymond Obermeyer, comments. “We have managed to secure a lot of business in Africa, and I see it contributing a large percentage of our turnover going forward.”
This growth is largely due to the fact that the brand is well-entrenched in Africa, especially in diverse sectors such as mining and agriculture. In addition, the outward focus on expansion on the continent is necessary to counter the prevailing socio-economic climate in South Africa. “That is the determining factor. We need growth, political stability, and business confidence in order to ensure the continued sustainability of the business.”
The company remains fully committed to South Africa, however, with the main Johannesburg manufacturing facility relocating to a larger new site in an adjacent industrial business park. Property rights for the new development are expected to be secured by September, following which a decision will be taken as to the exact make-up of the new facility. This is because South and East Africa now fall under the ambit of the South African head office, including Tanzania, Kenya and 14 other countries.
The new branch in Tanzania, staffed by 13 people and functioning as an independent subsidiary, looks after a number of countries in East Africa itself, including the DRC, Uganda, South Sudan, Ethiopia and Somalia. The importance of Tanzania as a regional hub is underscored by the fact that it is undergoing significant infrastructure development. “We have full technical back-up and service facilities in support of the many projects we are involved with there, from road to rail and ports and harbours,” highlights Obermeyer.
While the investment for the new local manufacturing facility is being provided by the German parent company, the necessary business decisions are all being made locally, assures Obermeyer. “South Africa itself is not being neglected, with the Port Elizabeth branch recently relocating to new premises in order to accommodate growth in the Eastern Cape market. A key differentiator for us in the local market is that it owns all of its local offices, as opposed to leasing premises, which not only represents a major investment, but is testament to Germany’s confidence in South Africa’s future.”
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