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Business in Africa challenging but exciting

By Jeanie Erickson
Johannesburg, 08 Jun 2004

Africa is a unique and diverse continent, with each country having its own specific needs. Doing business across the continent certainly presents challenges, but it is not without excitement or business rewards. So says Jeanie Erickson, Executive, NamITech Mobile Solutions.

"NamITech has been exporting to over 30 countries across Africa for numerous years, and has come to realise that not only does each country have a specific set of requirements, but so too does each client. It is certainly not a case of one size fits all," says Erickson. She says companies need to be highly flexible in their approach when dealing with African clients.

"Africa remains a predominantly cash-based society and companies exporting into the continent need to take cognisance of this. In addition, stringent project management methodologies must be applied in order to maintain control and overcome some of the challenges encountered. As with any exports, fluctuations in currency can impact on business and pricing is an important factor to consider. This should be determined with the African economic environment in mind. Each country and each market has its own set of variables and any product or solution intended for export requires customisation to fit these changing circumstances," says Erickson.

Other challenges cited by Erickson include country regulations, encompassing import costs and controls, and stipulated requirements for a local partner. There is often a general lack of infrastructure and in-country skills necessary to maintain hardware and software may be limited. It is often incumbent upon the solution provider to supply the necessary support services.

NamITech`s exports include products, like SIM cards and prepaid vouchers, and solutions such as its very successful Electronic Value Distribution (EVD) Solution. The EVD Solution facilitates the secure distribution of prepaid value or inventory, including airtime, utilities, tickets etc., via an electronic mechanism such as a point-of-sale (POS) device, the Internet, a mobile handset or a PC-based cashier, thereby effectively replacing traditional methods of scratch card distribution.

Several factors have played a role in the growing number of EVD implementations throughout Africa, namely:

* The solution is cash-based and modular in nature and each of the components is favourably priced;
* Due to the large scalability of the solution, operators can choose which modules to implement, according to existing infrastructure, needs and budget;
* An inherent flexibility to adapt to the unique circumstances presented by each implementation;
* Having an intimate understanding of the implementation environment.

"Through customer intimacy and understanding, business in Africa becomes not only possible, but successful and rewarding. References from previous contracts and solution implementations, as well as confidence in the quality of the product, assist companies to expand their trade in Africa and to leverage off existing customers. However, the most important factor to stimulating trade in Africa remains visibility. It is vital that there is a strong in-country presence, be that either through regional offices, regular country visits to customers or attendance at trade shows, exhibitions or conferences. Potential and existing customers need constant assurance that they are a crucial part of the value chain," concludes Erickson.

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NamITech Mobile Solutions

NamITech Mobile Solutions is the largest revenue generating division within NamITech Limited, a secure technology provider focusing on a number of key market areas to provide leading edge technology solutions. NamITech strives to add value to business through providing leading edge innovative secure technology solutions aimed at facilitating trusted card technology, payment solutions, and digital trust services for its customers. The company is a Proudly South African member and has received an AA Premium rating from EmpowerDEX, an independent economic empowerment rating agency.

NamITech is a subsidiary of the multibillion-rand JSE Securities Exchange-listed Altech group of companies and has an established reputation of credibility and integrity. The company operates out of two centrally located premises Johannesburg.

Editorial contacts

Victoria de Bruyn
Brand New Communications
(011) 458 0000