Page 30 - EngineerIt March 2021

OPINION

Africa is coming of stations around the country, Petrocam
and its lubricants has been accepted as
an African brand.
Africa’s time is now. Sure, the
age and multinationals pandemic and other geopolitical
events have added challenges, but
there is no denying the potential of this
must adjust continent by the mere fact that 60% of
the population is under 25 years old.
Businesses that build their models in
favour of this demographic today will
enjoy a mutually beneficial relationship
By Ridwan Gany, CFO at Petrocam for many years to come.

What does any of this have to do
with South Africa?
frica should be treated as the unique continent that it is, to realise its full potential. The most developed market on the
This is not to say that multinationals currently operating on the African continent continent? South Africans deserve to be
Aare not adding value, rather it means that far more Africans could benefit if treated in the same way. While there are
multinationals adapt to the specific context of the continent. glossy buildings and pockets of immense
wealth, there are also large swathes of
Cost and quality matters the population that are excluded from
Cost and quality matters in the oil and lubricant sectors worldwide, and even more so in quality and durability on price point alone.
Africa – this is true from Alberton to Abuja. It is all good and well bringing quality to the Beyond that, why should the wealthier
continent, but high pricing in the African context excludes the majority except well-to-do pay more just because they can?
businesses and elite role players. Consequently, most market participants are forced to This is the pain point that Petrocam
use inferior product. hopes to fill with its African experience:
As a business, we are moving trucks throughout various countries on the continent at provide quality at a far more inclusive
any given point, interacting with local businesses and various supply chains, and we have price. By doing this, South Africans, like
observed that Africa is modernising at a noticeable pace. their African counterparts don’t have to
In the oil sector, Africa has traditionally used older vehicles which utilised certain settle for inferior quality because of cost.
mineral oil products, but an increase in the standard of living across borders has led to
the introduction of a modernised commercial fleet and private vehicle market. This has More about Petrocam
necessitated bringing in modern, high-spec oils to the continent, but with the proviso Petrocam Trading (Pty) Ltd, established
that these should still be affordable. Despite the increase in economic activity, on a in 2004, is an entity focused on
like-for-like basis, the buying power on the continent broadly does not match that of commodity trading in Africa. Petrocam
developed markets. has in the last 10 years developed
invaluable and competitive experience
Africa deserves better quality in operating in developing countries and
That’s the key. Africa deserves quality at a more palatable price point, and this is achieved has cemented its ability to facilitate trade
by streamlining operations, and carefully managing supply chains. This, in turn, stimulates in emerging and developing markets,
business activity in various countries on the continent. All these components – from relating to African import and export flows
quality, to price, to active downstream business opportunities – build trust in a brand. of commodities. www.petrocam.co.za n
So, what does a multinational need to do then, to switch the script and adapt to
Africa as opposed to Africa needing to adapt to a model of business that originates in
developed markets?
It sources the best base oil at a cost that doesn’t pass unnecessary financial
burden onto Africans. Then, when it comes to additives, it travels to the countries with
best practise and negotiates deals that suit the African market. It then invests in a
manufacturing process that does not compromise on quality but is designed to pass the
cost savings to the end-consumer. It hires and outsources various aspects of the business
to Africans.
It is our view that any oil company that wishes to adjust the status quo in favour of
the people of this continent needs to demonstrate three things – it must understand the
African context, it must be generating business on the continent and it must have a proven
track record which speaks to credibility.
Petrocam’s story in Nigeria is perhaps testament to this philosophy. Entering a market
dominated by giants is not easy. Many have tried and many have failed. However, with a
client-centric approach focused on quality, reliability, and price sensitivity, Petrocam has
been a steady supplier of refined products into Nigeria. Today, with solar-powered filling

EngineerIT | March 2021 | 28