Barloworld is targeting six sectors to boost the growth of its business and is busy positioning itself "o expand into west and east Africa‚ according to company chief executive Clive Thomson.
Barloworld's Clive Thomson is upbeat about the company's Africa prospects. Image: Barloworld.
While the diversified company has continually expanded its operations outside of SA‚ its African growth has tended to focus more on countries south of the Democratic Republic of the Congo (DRC).
In results released this week‚ in which it reported a strong 26% rise in headline earnings per share, Barloworld emphasised its strategy to reallocate capital to "higher return opportunities".
Thomson said the company's six strategic growth segments were mining‚ infrastructure‚ power‚ automotive‚ logistics and agriculture.
"We have taken our Avis Fleet Services business into Ghana in west Africa‚ and we're looking at an acquisition opportunity at the moment in east Africa for that business‚" Thomson said.
Logistics business faces challenges
He said while Barloworld's logistics business was traditionally focused on SA‚ it was following the expansion of its customers into the rest of Africa.
"Logistics is one of the biggest challenges in Africa‚" he said, adding that the sector provided opportunities for those able to provide solutions.
Thomson said Barloworld is focusing on the existing territories where it operates to grow through with established businesses in these regions.
While most of the company's growth would come from countries in southern Africa including Zambia‚ Angola‚ Mozambique‚ Malawi‚ Namibia‚ Botswana and SA, Baroloworld is positioning itself to expand into west and east Africa.
Thomson warned that while many mining companies were holding back on new capital investments‚ much of Barloworld's mining equipment business was focused on parts and services‚ which benefited from ongoing maintenance of existing mining operations.
Although the external environment was likely to remain quite tough‚ Thomson said Barloworld was confident that it will improve its operating performance through internal efficiencies and organic and acquisitive growth.
I-Net Bridge For more than two decades, I-Net Bridge has been one of South Africa’s preferred electronic providers of innovative solutions, data of the highest calibre, reliable platforms and excellent supporting systems. Our products include workstations, web applications and data feeds packaged with in-depth news and powerful analytical tools empowering clients to make meaningful decisions.
We pride ourselves on our wide variety of in-house skills, encompassing multiple platforms and applications. These skills enable us to not only function as a first class facility, but also design, implement and support all our client needs at a level that confirms I-Net Bridge a leader in its field. Go to: http://www.inet.co.za
LEGAL DISCLAIMER: This Message Board accepts no liability of legal consequences that arise from the Message Boards (e.g. defamation, slander, or other such crimes). All posted messages are the sole property of their respective authors. The maintainer does retain the right to remove any message posts for whatever reasons. People that post messages to this forum are not to libel/slander nor in any other way depict a company, entity, individual(s), or service in a false light; should they do so, the legal consequences are theirs alone. Bizcommunity.com will disclose authors' IP addresses to authorities if compelled to do so by a court of law.