Utilities Afrique Exchange, Africa`s first B2B electronic exchange focused on the multi-billion rand utilities sector, is being established by specialist technology group Omega Scientific Research (OSR).
The portal, which has already drawn the interest of leading utilities and international companies, will be powered by Infobank Africa`s InTrade suite of integrated software solutions for Web-based purchasing, supply and trading. InTrade will be integrated into participating companies` ERP systems to provide online real time trading services.
The exchange will offer comprehensive e-trading to African utilities in the power, water, gas and telecommunication sectors and their several hundred suppliers, initially for the procurement of maintenance, repairs and operations (MRO`s) goods. It will also offer utilities access to rich, real-time information such as news, business opportunities and events from throughout the African continent.
"Our experience and understanding of African conditions allows us to add value to the business proposition. Utilities Afrique is one more deal adding to our present business and to our rich pipeline," says Infobank Africa`s CEO, Dr Douglas Boateng.
Cyril Ramaphosa, non-executive chairman of Infobank Africa adds, "This initiative clearly demonstrates that African businesses are leveraging their resources to create an electronic utilities infrastructure. The openness of the Internet will allow African businesses to become true participants in the new economy, leading Africa into an era of prosperity, job creation and ultimately, social health."
Dr Kwame Amuah, chairman of Omega Scientific Research, sees his company`s entry into the b2b space as a natural development for a technology business seeking to consolidate its position as an innovative player in the e-commerce revolution.
"Electronic trade is inevitable for businesses seeking to interact successfully with one another in a competitive environment. Furthermore, there is a compelling case for involvement in a business utilising the power and nature of the Internet. It helps companies and nations to compete fairly."
He says it makes good business sense when entering a dynamic new sector of the economy to identify a partner with a proven record of success. Infobank has demonstrated internationally and locally its capabilities through its InTrade suite of products.
"We are also comfortable with Infobank`s philosophy of focusing first on a potential client`s business approach before addressing the technology issues. This approach is what distinguishes Infobank from others. In addition, OSR has an excellent track record in the provision of IT solutions to utilities."
Dr Amuah says that both suppliers and buyers in the utilities sector can achieve substantial reductions in administrative costs. On the supplier side, this can amount to as much as 80% of sales cost while purchasers can reduce the processing costs of procurement by a minimum of 50%.
`We are anticipating rapid acceptance of this specialist portal based on the quick recognition by the market of the benefits accruing from the use of e-commerce. Utilities in Europe moved quickly to implement this system and we believe local utilities will follow suit. We are currently on the verge of signing deals not only with Africa`s leading utilities companies, but also with global players such as Schlumberger Resource Management, a division of Schlumberger Limited that has shown an interest in participating in Utilities Afrique Exchange. We are also proceeding smoothly with the accrediting of suppliers."
He says Utilities Afrique Exchange will focus initially on building a powerful customer base in South Africa before expanding into East and West Africa. A number of African countries have already committed to joining the exchange.
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