RAYMOND OBERMEYER The importance of Tanzania as a regional hub is underscored by the fact that it is undergoing significant infrastructure development
Drive engineering specialist SEW-Eurodrive is adding to its existing presence in Tanzania, its main hub in Eastern Africa, by opening a new office in Kenya and starting a recruitment drive in Burundi and the Democratic Republic of Congo (DRC).
SEW-Eurodrive’s Tanzanian branch, in Dar es Salaam, which is staffed by 13 people and functions as an independent subsidiary, looks after several countries in East Africa, including Uganda, South Sudan, Ethiopia and Somalia, as well as the DRC in Central Africa.
“We will have to ensure that we are able to accommodate future growth in all these markets. We are very confident about our prospects in Africa and continue to do well in many countries,” SEW-Eurodrive South Africa MD Raymond Obermeyer says.
In 2014, when SEW-Eurodrive opened its Tanzanian office, SEW-Eurodrive Tanzania MD Urs Roos stated there was a need to get closer to the end-user and assist original-equipment manufacturers (OEMs) in the region.
“It is crucial to offer a reliable service without compromising quality,” he noted, adding that countries that fall under SEWEurodrive’s East African office umbrella also include Burundi, Eritrea, Kenya, Rwanda, and Tanzania.
Obermeyer highlights that the importance of Tanzania as a regional hub is underscored by the fact that it is undergoing significant infrastructure development.
“We have full technical backup and service facilities in support of the many projects we are involved with in Tanzania, from road and rail to ports and harbours,” he says, explaining that East Africa represents a major growth area for the drive and automation technology specialist.
“We have managed to secure a lot of business in Africa and I see it contributing a large percentage of our turnover in future.”
Obermeyer points out that the growth is largely owing to SEW-Eurodrive’s brand being well-entrenched in Africa, especially in sectors such as mining and agriculture. Further, the outward focus on expansion on the continent is necessary to counter the prevailing socioeconomic climate in South Africa.
“That is the determining factor. We need growth, political stability and business confidence to ensure the continued sustainability of the business,” he says.
Obermeyer explains that SEW-Eurodrive remains committed to South Africa, with the main Johannesburg manufacturing facility relocating to a new 50 000 m2 site in an industrial business park adjacent to the current facility. Property rights for the new development are expected to be secured by September, following which a decision will be taken as to the exact make-up of the new facility.
“This is because South and East Africa, including Tanzania, Kenya, and 14 other countries, now fall under the ambit of the South African head office. At present we are looking after 22 countries in Africa from the South African operation. Therefore, the construction of the new facility will very much be in line with our expansion strategy for the continent,” he highlights.
While the investment for the new local manufacturing facility is being provided by the German parent company, the necessary business decisions are all being made locally, he assures. The greater South Africa itself is not being neglected, with the Port Elizabeth branch, in Greenbushes, recently relocating to new premises to accommodate growth in the Eastern Cape market.
This move reflects both the growth of the branch and the importance of the Eastern Cape, says branch manager Francois Sieberhangen.
Although Port Elizabeth is the smallest SEW-Eurodrive branch nationally, it is showing promising growth. “We look after some of the largest accounts nationally and are a major contributor of servo drive technology, alternating current drives and decentralised drives,” comments Sieberhangen. The branch services the entire Eastern Cape, with customers in the automotive, food and beverage, tyre and rubber, wood and timber, and fishing industries, in addition to OEMs and resellers.
Obermeyer concludes that a key differentiator for SEW-Eurodrive in the local market is that it owns all its local offices, as opposed to leasing premises, which not only represents a major investment, but is testament to Germany’s confidence in South Africa’s future.