An increasing number of ACT exporters are now talking of sub-Saharan Africa as a land of opportunity.
Sentinel, an ACT-based environmental consulting company that specialises in the design, implementation and operation of remote monitoring systems has been servicing the mining industry in Africa since 2000.
“Our experience working in Africa has been terrific. Whilst demanding and challenging, our work in Africa has been fulfilling, educational and profitable” says Rod Sandison, Managing Director Sentinel.
Australian mining investment in Africa is massive and by some estimates worth more than $20 billion. Sentinel, are just one of hundreds of Australian service companies who have entered the African market to provide to provide logistical and technical support to the mining sector.
Sentinel’s longevity in Africa has much to do with the enormous short-fall in the supply of educated and experienced personnel willing to operate in harsh and security challenged countries in Africa.
“Throughout the past ten years, Sentinel has worked to develop the skills base of its local African workers as well as developing partnerships with in-country professionals” says Rod.
Significant oil discoveries recently in Ghana and Uganda mean these countries are likely to show exceptionally high growth rates and present enormous opportunities for ACT companies like Sentinel in the future.
Education & Training is another area where the ACT has much to offer Africa. The Centre for Customs & Excise Studies at the University of Canberra operates in a number of countries in East and Southern Africa.
“All our activities in Africa are run in collaboration with African partners who understand the local culture, have extensive professional networks and have the ability to tailor our products and services to meet the specific requirements of the African market” says Professor David Widdowson, CEO, Centre for Customs & Excise Studies.
Across the African continent there is a growing appreciation of the benefits of education and an acknowledgement that domestic institutions alone cannot meet the insatiable demand for knowledge and specialist training.
Despite the many challenges that exist to doing business in Africa, ACT companies remain fairly optimistic about growth in Africa.
ACT firm Corcon, produces environmentally sustainable formwork for the use in the construction of low-cost housing. Corcon are currently investigating joint venture deals in Ethiopia and the Sudan to supply low-cost and environmentally sustainable housing on behalf of the local governments.
“To be sustainable in Africa in the long-term, businesses need to have a competitive advantage. We are competing against cheaper Chinese, Indian and Middle East products and its vital we remain competitive and offer a superior alternative product” says Andy Stodulka, Managing Director, Corcon.
In 2006 Windlab Systems, a global wind energy development company were looking to break into new markets beyond Australia and New Zealand. South Africa emerged as a market that had huge potential growth in the green energy industry but at the time, the wind energy market in South Africa was completely under developed.
Windlab worked with a South African partner who was invaluable in helping the company to navigate the South African regulatory environment for renewables. “The risk we’ve borne in opening up the South African market is that these regulations have taken a while to be developed by government” said Dr Nathan Steggel, President – North America, Windlab Developments.
Windlab together with their South African partners are well poised to fully develop a number of large wind farms in South Africa over the coming years.
Africa is a largely untapped market for Australia firms and the potential for partnerships is enormous. For ACT businesses looking to explore opportunities on the African continent, South Africa with its global focus, strategic geographical location and world class infrastructure presents a highly competitive investment location and a stepping stone into opportunities in the broader African region.
Tips for ACT businesses looking to explore opportunities in Africa
Consider partnering with a local business. “Look to complement your Australian-based capabilities with local knowledge of the African market” says Professor David Widdowson, Centre for Customs & Excise Studies.
Stay in local guesthouses. “They are much friendlier and the service is better than in most hotels. Importantly it’ll save you money” says Dr Nathan Steggel, Windlab Systems.
Don’t believe all you read in the media or hear from aid organisations. South Africa is an emerging market underpinned by an abundant supply of natural resources, well developed financial, legal, communications, energy and transport sectors and modern infrastructure, enhanced in recent times by new and improved infrastructure to support the hosting of the 2010 World Cup.
As will all new markets it is important businesses conduct thorough market research and not to underestimate the local competition. Even the biggest companies have struggled in South Africa because they failed to undertake detailed market analysis.
The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry.
ACT Exporters Winning Business in Africa
An increasing number of ACT exporters are now talking of sub-Saharan Africa as a land of opportunity.
Sentinel, an ACT-based environmental consulting company that specialises in the design, implementation and operation of remote monitoring systems has been servicing the mining industry in Africa since 2000.
“Our experience working in Africa has been terrific. Whilst demanding and challenging, our work in Africa has been fulfilling, educational and profitable” says Rod Sandison, Managing Director Sentinel.
Australian mining investment in Africa is massive and by some estimates worth more than $20 billion. Sentinel, are just one of hundreds of Australian service companies who have entered the African market to provide to provide logistical and technical support to the mining sector.
Sentinel’s longevity in Africa has much to do with the enormous short-fall in the supply of educated and experienced personnel willing to operate in harsh and security challenged countries in Africa.
“Throughout the past ten years, Sentinel has worked to develop the skills base of its local African workers as well as developing partnerships with in-country professionals” says Rod.
Significant oil discoveries recently in Ghana and Uganda mean these countries are likely to show exceptionally high growth rates and present enormous opportunities for ACT companies like Sentinel in the future.
Education & Training is another area where the ACT has much to offer Africa. The Centre for Customs & Excise Studies at the University of Canberra operates in a number of countries in East and Southern Africa.
“All our activities in Africa are run in collaboration with African partners who understand the local culture, have extensive professional networks and have the ability to tailor our products and services to meet the specific requirements of the African market” says Professor David Widdowson, CEO, Centre for Customs & Excise Studies.
Across the African continent there is a growing appreciation of the benefits of education and an acknowledgement that domestic institutions alone cannot meet the insatiable demand for knowledge and specialist training.
Despite the many challenges that exist to doing business in Africa, ACT companies remain fairly optimistic about growth in Africa.
ACT firm Corcon, produces environmentally sustainable formwork for the use in the construction of low-cost housing. Corcon are currently investigating joint venture deals in Ethiopia and the Sudan to supply low-cost and environmentally sustainable housing on behalf of the local governments.
“To be sustainable in Africa in the long-term, businesses need to have a competitive advantage. We are competing against cheaper Chinese, Indian and Middle East products and its vital we remain competitive and offer a superior alternative product” says Andy Stodulka, Managing Director, Corcon.
In 2006 Windlab Systems, a global wind energy development company were looking to break into new markets beyond Australia and New Zealand. South Africa emerged as a market that had huge potential growth in the green energy industry but at the time, the wind energy market in South Africa was completely under developed.
Windlab worked with a South African partner who was invaluable in helping the company to navigate the South African regulatory environment for renewables. “The risk we’ve borne in opening up the South African market is that these regulations have taken a while to be developed by government” said Dr Nathan Steggel, President – North America, Windlab Developments.
Windlab together with their South African partners are well poised to fully develop a number of large wind farms in South Africa over the coming years.
Africa is a largely untapped market for Australia firms and the potential for partnerships is enormous. For ACT businesses looking to explore opportunities on the African continent, South Africa with its global focus, strategic geographical location and world class infrastructure presents a highly competitive investment location and a stepping stone into opportunities in the broader African region.
Tips for ACT businesses looking to explore opportunities in Africa
For more information contact Ms Cathy Atkins, Australia-Africa Tradelinks & Networks on cathyatkins@australiaafricatradelinks.com.au or Chris Horsburgh, ACT & Region Manager, Austrade at chris.horsburgh@austrade.gov.au
The ACT Exporters’ Network is proudly sponsored by the ACT Government, Canberra Business Council, the Centre for Customs & Excise Studies and AusIndustry.