Mustek focuses on Africa

By Nicola Mawson for Mustek
Johannesburg, 22 Jun 2009

PC distributor Mustek could more than quadruple income from its African business in the next two years, but is taking a cautious approach that puts conservatism ahead of turnover growth.

Peter Bouwer, executive for special projects at Mustek, says the company is focusing on Africa as a growth area, as the continent is hungry for technology. Mustek is a South African-branded assembler and distributor of PCs, notebooks and related products.

Mustek earned R50 million from its African business this year, which is 1% of the possible market, but is taking a conservative approach to growing. Bouwer says the company could increase revenue quickly, but is avoiding risks. He would be happy with revenue of between R200 million to R300 million in the next two years.

In the year to June 2008, the group reported revenue of R3.4 billion. It has a joint venture in Nigeria - the Zinox brand - which is a partnership between Mustek and Nigerian and French companies, which is making inroads into West Africa.

Bouwer says the company aims to have regional offerings that will be able to assemble, sell and handle warranties on machines, which will avoid costly import and export duties when machines are shipped back to SA for repairs.

Into Africa

A few years ago, Mustek drew up a detailed three-year growth plan for the continent. Step one was entrenching its position in the Southern African Development Community, which it has completed.

Last year, it moved its focus to central Africa and countries such as the Democratic Republic of Congo, Angola and Cameroon. The company is almost set to move into North Africa, but has not yet completed its Central African leg.

Bouwer says the challenges of working on the continent include getting used to a different set of business ethics, and it takes longer to build relationships. He says it is important to have a partner on the ground, which can assist with issues such as customs.

One important area of growth is in the education arena, where Mustek targets learners and teachers. It has formed an alliance that enables power - through solar energy - to be used in areas where there is no electricity.