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Western Cape Africa Agribusiness Forum

Western Cape Africa Agribusiness Forum. Exporters Club of SA. “DOING SUCCESSFUL AGRI-BUSINESS IN AFRICA”. Presenters: Andy Knox & Andy Church. Venue: Lord Charles Conference Centre Somerset West Date: 14 th June 2012. Industrial Projects. Infrastructure Projects.

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Western Cape Africa Agribusiness Forum

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  1. Western Cape Africa Agribusiness Forum Exporters Club of SA “DOING SUCCESSFUL AGRI-BUSINESS IN AFRICA” Presenters: Andy Knox & Andy Church Venue: Lord Charles Conference Centre Somerset West Date: 14th June 2012

  2. Industrial Projects Infrastructure Projects Operations & Maintenance

  3. Group Structure CEO – Mike Gibbon MD – Max Stemele MD – Stephen McCarley MD – Bill Yeo BMS (Pty) Ltd MD – Allen Liversage OM – Fábio Bellam • 100% Employee Owned

  4. Joint Operations Infrastructure Industrial Operations and Maintenance New Business

  5. Initial Strategy • Targeted niche market with few competitors. • Able to service from South Africa without expensive setup costs. • English speaking. • Reasonably stable. • Close enough that could be reached within one or two flights.

  6. Financial • Fixed fee contracts are the preferred norm. • Most clients like to negotiate, so make sure there is something to give away. • Secure up-front payments and try and stay cash positive. • Don’t release work until you are sure finance is available or in your bank account. • Try and secure payment sureties (not popular).

  7. Contractual Agreements • Majority FIDIC based. • Not always the end all, be all. Good to have, but normally personal relationships and a handshake has more meaning. • Generally those (local companies) in Africa doing big business have good connections, so legal action is normally not effective. • Best to retain good relationship with Client and be abreast of his current financial situation.

  8. Project Viability • Problems encountered in Africa: • Availability of water. • Power. • Access. • Soils.

  9. Medical • Have a plan in place. • Emergencies normally happen over weekends.

  10. Security • Work force needs to be mobile. • Constant security monitoring.

  11. Thank you...

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