Bigger companies shun smaller projects

There is much opportunity to
streamline the supply chain in
Africa especially when it comes
to smaller operations, says Paul Runge,
managing director of Africa Project
Access.
According to Runge there are no set
systems to address the needs in Africa,
with many smaller projects having very
haphazard set ups. And with supply
just not up to standard, many projects
are happening all too erratically.
A recent trip to central Mozambique,
where various hotel projects are under
way, proved this once again, he said.
“I was shocked to see how a few
guys with a truck or five are trying
to get to everything. It is all a mad
scramble to supply the demand and
very rudimentary,” Runge said.
While he understands that many
big companies are not interested in
the smaller contracts, it does raise
the question – what happens to the
smaller projects? “Why must it be
complete chaos? What has to happen is
a proper needs analysis, which allows
companies to be pro-active and address
the issues at hand. It is unnecessary for
people to be waiting for stuff all the
time.”
According to Runge there have been
plenty of complaints about supply
chain demand in various countries,
proving that there is a need to address
the supply chain. These complaints
even came from the copper belt area
where activity was huge until the
economic downturn. “There were many
complaints about the supply chain. It
is not a well-oiled machine that runs
smoothly.”
And, says Runge, while South
Africans are remaining inwardly
focused due to the many projects at
home, neighbouring countries are
picking up the slack. “There are so
many special projects under way in
South Africa that are big and grand that
many companies are not going to go
and look for projects in Africa where
there is often no infrastructure.”
He said countries such as Namibia
had, however, identified opportunities
and were now a preferred option when
moving cargo into Angola, especially
the south. “It is a very viable option as
a source of supply into Angola as they are efficient and the ports and airports
are doing well. The Namibians have
worked hard at supplying Angola.”
Runge said while it was
understandable that some operators
were hesitant to become involved
in Africa’s smaller projects, there
was also much opportunity. “Africa
is the only continent still showing
positive growth, so it is no wonder
the entire world is interested in the
continent. Africa is a treasure trove of
resources and commodities with much
opportunity. But there is no denying
the intrinsic need for a far smootherrun
and operated supply chain.”