Modern Quarrying

MODERN QUARRYING

October - November 2015

ON THE

COVER

ew business development is a key

component of the group’s growth

strategy. Under the leadership of Carl

Malan, the dedicated business devel-

opment team is focused on identify-

ing and pursuing opportunities in existing markets,

as well as in anticipated new high growth areas.

“With our diversification policy at Afrimat, we

made a clear decision to start investigating and

procuring an international income stream in addi-

tion to our South African base. This is a broader

Afrimat strategy and we targeted specific areas in

Africa with Carl, myself and other team members

travelling into Africa,” Odendaal explains.

The senior management team visited

Mozambique some four years ago, with the

approach that it would not enter the market unless

it had been awarded a fairly substantial contract.

“We bid primarily to Portuguese companies as well

as other international companies. We had a busi-

ness plan and had found a source but we had no

presence. At that stage, our presence was flights

into Mozambique and handing out business cards.

This low-risk approach didn’t work for us and

forced us to revisit our strategy.”

Afrimat believes that Africa is its most natural

move, and considered Nigeria, Ghana, Zambia, and

Mozambique again.“We walked away from Nigeria

and Ghana for various geographical and other

challenges; Zambia had options but we couldn’t

find the right partnership agreement and the eco-

nomics didn’t work for Afrimat.

“We returned to Mozambique having identified

the Tete-Ncala railway line as a viable opportunity;

not in Ncala itself but in the hinterland where work

is required and where the offerings are not that

many. We have been successful in our bid for a con-

tract, and this was our first step into Mozambique.

“At the same time, the Cabo Delgada Liquified

Natural Gas (LNG) project, spearheaded by two

international companies, Anadarko and ENI, came

to the fore,” he says.

The project is advancing an onshore LNG park

Afrimat –

building strength

beyond borders

JSE-listed company Afrimat has extended its reach into Mozam-

bique, supporting the rapidly developing region with high quality

aggregate products for civil and mining projects, as well as drilling

and blasting services. It has established quarries in Pemba and

Cuamba in the northern region with another quarry planned for

Palma.

Dale Kelly

chats to Gerhard Odendaal, MD Afrimat Con-

tracting International about the reasons behind this move.