Privately-owned IT distributor Comztek is looking to Africa for future growth - but wants to start cutting down on the millions it spends on the continent.
During a recent interview, Comztek MD Paul Conradie said the parent company is investing in the region of R50 million a year in African subsidiaries, but wants to lower this amount as the different branches start becoming profitable.
"Our vision for the rest of Africa, in terms of revenue, is to bring it up to the same stage as SA," says Conradie, explaining that Africa constitutes a "very small" portion of group revenue.
"For now, it's still early days, but we don't try and be everything to everyone," he adds, noting that the company has thus far had to fund its own expansion into Africa.
The company does not provide its entire product line to the African market, but rather only those offerings that already have some focus in Africa. This includes the likes of Cisco, Fijitsu Siemens, Symantec and McAfee.
Comztek has wholly-owned braches in Namibia, Zambia and Kenya and, according to Conradie, has learnt the most from the Kenyan branch.
"In each country you do have your own culture and the way business is done in North Africa, for example, is very different to how it is done in Southern Africa," he explains.
Conradie says the recent political unrest in Kenya has not moved the company to shift its targets for that region, as the situation was resolved relatively quickly. He says volatility is a given in the African market, which is why the company is only investing in relatively stable economies.
He says the company's spend in those countries has, however, been fairly intensive due to the infrastructure that has to be rolled out first. In future, Comztek will partner with 40% shareholder Mustek to expand in Africa.
"It fits with their strategy as well, so we will have greater alignment going forward," says Conradie.
While sketchy on details, he says "we do plan to open in a few countries in the next 12 months".
In the meantime, the company services countries that do not have branches through telesales, as well as travelling agents, creating "quite a good footprint" in the process, in Conradie's view.
This is as Africa, according to Conradie, "is a definite strategic goal for Comztek and we are looking to it for exponential growth".
Related story:
Channel consolidation to continue
Share