Traders of electrical transmission and distribution equipment to African utilities

South Africa
Construction; Education & Government; Energy & Power
Client Code: BN000034222
Turnover (Forecast): R165,689,280
EBITDA (Forecast): R4,235,346

Our client is a trading business, buying electricity transmission and distribution equipment and selling to African countries, largely for electrification projects in rural areas. The company mostly targets donor-funded tenders floated by the power utilities of countries across the African continent, who act as the implementing agency of the funders for the electrification infrastructure. The company’s core business is to secure supply contracts through these tenders. 

Key Aspects
  • Expenditure on African electrification infrastructure will continue for years to come and the demand for our client’s products will remain substantial for many years
  • Rural electrification is seen by African governments as a priority to stimulate economic growth
  • Deep experience in trading into Africa, with a strong knowledge of economics, politics and trade requirements of countries across the continent
  • Established over two decades ago, the multiple shareholders have leveraged their diverse skills over the years to expand the business across many countries
  • Work with 19 African countries
  • Trusted advisors and suppliers to national utilities companies
  • Low risk business model
  • Strong order book and project pipeline
  • Proven tender success for strategically selected projects
  • Committed leadership ready for the next phase of growth
Opportunities
  • Skilled at supplying electrical transmission and distribution equipment into Africa, the opportunity exists to both expand this offering to include supplementary infrastructure, educational and healthcare products to the same market, and to offer contracting services for the installation and commissioning of the electrification infrastructure.
  •  Expanding the product range by supplying specialized equipment to utilities: identifying niche products and presenting these to the utilities companies will grow the market demand for niche products with a higher margin.
  • Expanding the services offering by having a specialized team dedicated to medium voltage and low voltage line construction and substation work will increase revenue as more opportunities are moving towards turnkey projects.
  • Increasing the market sectors targeted by bringing in experts in other infrastructure sectors will expand the opportunities available to the business as global donors typically fund several key infrastructure sectors. Further, partnering with independent power producers and other specialists in the sector will further present growth opportunities as many utilities are moving to renewable energy supply.
Current Markets
  • The company has an excellent reputation with the power utility companies of 19 African countries, earned over many years of outstanding performance. 
  • The company targets donor-funded tenders from global organisations such as The World Bank, African Development Bank and International Development Association.
  • Understanding the complicated logistics involved in supplying into Africa, our client is supported by a strong network of long-standing country representatives, who understand the local culture and language. 
  • As one country slows down in their electrification projects and purchasing activity, another will enter the market with a new expansion drive and issue several tenders, creating a constant supply of opportunity for the company.