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Africa Needs Solutions Not Products! Tanzania, Uganda, Kenya GDP GROWTH 2012 • Kenya 4.7% • Tanzania 6.5% • Uganda 4.9% • Arusha ‘solutions’ ‘Syndicate’ for Successful Solutions Africa - Current Facts (McKinsey) – Worth Repeating • • • • • • GDP = $1.6+ Trillion – Close to Brazil’s and Russia’s $900 Billion = Combined consumer spending 400 Million = New mobile phone subscribers since 2000 60% = Share of worlds total uncultivated, arable land 52 = African cities with more than 1 million people 20 = African companies with revenues of at least $3 Billion • The rate of return on foreign investment is higher in Africa than in any other developing region ‘Syndicate’ for Successful Solutions Our Competitive Advantage / Value Proposition We can’t compete on ‘me too’ commodities but we have… Customer • Location and access • Speed and convenience • Ease of communication • Logistics / supply-chain • After sales service • Attractiveness to buyers (to visit us) • Perceived quality / technology • Diversity of products and services ‘Syndicate’ for Successful Solutions A ‘Cultural Adjustment’ for South African Businesses • • • • • From prescriptive and paternalistic to… Listening and developing empathy The briefcase and brochure selling days are over We have to start talking to each other…more We’re not selling drills…we’re selling holes and what goes into them! • The need for full value-chain analysis – who are the players / who are the influencers? • An holistic view requiring an holistic response Angola – Border Posts Example • 147 Border posts • Food supply problems • Morale issues • Corruption • ‘Leakage’ • No power • SA / Kenya / Angola team solution ‘Syndicate’ for Successful Solutions It’s the ‘Power of Partnerships’ • Joint Ventures / Investment • Technology exchange It’s about providing blended solutions – not • Royalty sellingagreements stand-alone products or services • Franchising / Licensing • Joint use of production facilities (outsourcing) • Marketing each other’s products • Finding Complimentary Intermediaries / Facilitators It’s International Trade…Not Exports! Know Before You Go! – Pull / Push Market ‘Pull’ v’s Supply Side ‘Push’ The Hubs of Opportunity UK Trade & Investment – HVO Programme • Bringing £600 Billion of new business to the UK economy • Identifies major project opportunities at the feasibility stage • Identifies decision makers / stakeholders - public & private sector plus multinational corporations • Analyses the full requirements of the project/s • Matches suppliers to the opportunity as a consortia • Presents the total solution to the stakeholders including the involvement of foreign partners where gaps are identified • Involves small, medium and large enterprises in the supply chain The Hubs of Opportunity Oil & Gas Example East & West Africa Exploration & Development • • • • • • • • • • • • • • Exploration Activities Logistical services Supply boat services Rig positioning Telecommunications Engineering & fabrication Electrical engineering services Lifting & rigging equipment Inspection/NDT & certification Supply of plant & equipment Labour brokers / recruitment agencies Medical supplies Equipment hire Chemical supplies Environmental services The Hubs of Opportunity Uganda Confirmed wells - 7 Potential wells – 4 Planned field development Ghana Confirmed wells - 13 Potential wells – 4 Various field developments Namibia Confirmed wells - 7 Potential wells - 11 Oil & Gas Example Kenya Confirmed wells - 9 Potential wells – 10 Planned field developments Follow the Money! Tanzania Confirmed wells - 14 Potential wells – 8 Planned field development LNG export terminal Mozambique Confirmed wells - 10 Potential wells – 14 Planned field developments LNG export terminals Hunt as a disparate pack or… Join in the feast as a cohesive group! Thank You! www.addedasset.com [email protected]