Doing Business | Sales & Marketing

July 19, 2012

Africa: Difficult Challenge for Mauritian Businessmen

Africa is a dream. Mauritian entrepreneurs eyeing the continent in order to offset the slowdown in their main markets. But those who installed there discovered that Africa presents a complex political, economic and social elusive.

If the 'businessmen' premises were able to tame the local market and that of the West, building up an image of 'winner', for the African market and its population of one billion people, is something else.

But as the philosopher Seneca said, "it's not because things are difficult that we dare not." For Mauritian entrepreneurs dare, and have not equivocated to try the African adventure. But the results so far are mixed.

In Madagascar, for example, Mauritian firms find themselves in a situation similar to Sisyphus, which reach the summit of success remains difficult. Phoenix Beverages Limited (PBL) through New Brewery of Madagascar, whose production was launched in 2010, is facing difficult economic conditions, and increased competition. PBL has recorded for the last quarter losses of Rs 31.8 million against Rs 27.6 million at the same period last year.

The lottery company Gamma Civic in the Big Island, Reel Mada SA, continues to accumulate bad performance since its launch in February 2011. With operating losses of

Rs 117 million, management tries to operate, with all the difficulties of the world, a plan to reverse the situation. The situation appears to be identical to the United Basalt Products, who suffers from a lack of activities in Madagascar.

In Mozambique, Innodis declined at its output. The company to face competition, has decided to increase its production by 50% at the end of this year.

Because of political upheavals in the Maldives Island Resorts Lux saw its double-digit growth, achieved four consecutive quarters, down 3.3% for the quarter ending in March 2012.

Conveniently located 12 kilometers south of Marrakech, Domaine de Marrakech, New Mauritius Hotels Group (NMH), offers a bet diversification. But the tourism industry in Morocco currently blowing hot and cold. A public-private task force, responsible for regular monitoring of tourism and develop an action plan was established to limit the impact of the crisis on the Moroccan tourism sector.

The arrival of Omnicane be one of the biggest breakthroughs of a foreign company in the Kenyan sugar industry. But the Kenya sugar industry is far from the promised land, because one of the challenges facing the sector is the decline in productivity per hectare. The cane is not well paid, this led to many farmers neglect sugar to other crops such as corn and subsistence agriculture.

 

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