Article published in March issue of Endeavour Magazine. Access full issue here.
As history has shown us time and again, efficient food production and farming is the key enabler of economic growth, and the stable platform upon which societal development can be achieved. if sub-Saharan Africa is to truly realise it’s great, and yet unfulfilled potential, make no mistake about it – fostering a vibrant and sustainable agriculture sector is essential. Continue reading
Do you need to do some heavy lifting, loading, and moving? Do you have the right equipment on hand to do the job? The construction industry has changed a great deal over the years, with new equipment and machinery making these time-consuming and difficult tasks far quicker and easier to accomplish than ever. Crawler loaders in particular have changed the face of the construction industry. Continue reading
If you are looking for a range of ground engaging tools to invest in, none have impressed us more in recent times than the CAT range currently available on the market. The sheer versatility on offer and the capacity to manage a wealth of heavy lifting, digging, and loading tasks, are what make the CAT range of Ground Engaging Tools (GETs) so sought after in the construction, mining, and various other demanding industries. Continue reading
In the agricultural industry, tractors are essential. Over the years, different models and designs have emerged, all of which have brought about greater productivity in the industry. Along the way, articulated tractors appeared on the market and they have been exceptionally useful ever since. It is an undeniable fact that agriculture in Africa is under pressure to perform and provide. Continue reading
Article published in February issue of Endeavour Magazine. Access full issue here.
It is no secret that the lands of Africa are blessed with unimaginable riches, thanks to the vast natural resources that are to be found on and beneath its ground. For an example of this, we need look no further than the statistics surrounding its estimated mineral resources.
In the view of experts, more than 30% of the world’s mineral and metal deposits are to be found on the African continent, including three-quarters of the world’s known platinum-based metal deposits, half of its diamonds and chromium, and huge reserves of bauxite, cobalt, coal, copper, and iron ore. Naturally, for the countries that are fortunate enough to be blessed with such a bounty, mining acts as a key source of revenue with which to bankroll the building of the roads, railways, airports, dams and power stations that they so urgently need: a costly multi-billion-dollar endeavour.
Unsurprisingly, the number of mining companies that operate in the region – the explorers, the apprentice’s , and the big-name multinational heavyweights – are many, meaning that marketplace competition is predictably fierce. As mining companies jostle and compete to find and extract the precious minerals and metals that lie in wait, demand for world-class equipment and service support to give them an edge over industry rivals is great. As one of the largest and best-regarded distributors of heavy equipment and aftermarket spare parts across much of the sub-Saharan region, not only to the mining sector but also the construction and agricultural sectors, Kanu Equipment is often the first point of call.
Kanu Equipment’s mission is simple: to ensure that its customers across all industries are able to run their operations continuously. They achieve this through the supply of equipment, as well as through the ongoing support of locally-based or onsite maintenance teams who have second-to-none access to spare parts. Kanu Equipment believe in doing the basic things right, and also keep these services available to their customers maintaining the fruitful partnerships they have built with equipment suppliers of the calibre of Liebherr and Bell.
The Kanu name is inspired by an old African tale Kanthu N’khama, a story about a small but brave and resourceful bird that flies into a dark and forbidding forest, where it overcomes challenges and great danger to emerge from the other side larger and infinitely wiser. Kanthu N’khama, meaning ‘hard work pays off’, is a fitting namesake for the company, which through sheer hard work and an unerring dedication to superior service delivery has risen to become an industry leader in only four years. As Kanu Equipment’s founder and CEO, Stephen Smithyman, told us, it can’t be said that the company didn’t manage this rise the hard way:
“After starting the business in Congo, we then expanded into West Africa two years ago, and then last year we bought a business in Botswana and Zimbabwe – we basically started out in the hardest countries to do business in and then worked our way around.
We represent some of the best brands in the world. Liebherr is obviously a leader in supplying some of the best mining equipment in the world, and for Liebherr it’s the productivity of that equipment that counts. We’ve got an objective that we seek to achieve that is to reduce the cost per ton of ore mined for our customers. Our mining customers are looking for productivity and reduced costs. They want availability of machines and availability of spares.
On the construction side, the needs of customers are very similar. We deal with the top construction players in the sector, and they are particular about their needs. In terms of equipment, on the earthmoving side we’ve got the Liebherr, Wirtgen and Bell brands to support our customers – we’re very strong in this area, in addition we rent a lot of machines out.”
Initially, Kanu Equipment’s customers came from the Central African construction sector, but it wasn’t long before the company made its first foray into the mining sector as an equipment and service support provider. Since this time, Kanu has carefully cultivated a reputation for excellence, and has expanded into West Africa and Ghana in particular, where it is highly respected by the artisanal gold sector, as well as expanding into Ivory Coast and Liberia. Recently, Smithyman has overseen Kanu’s expansion into Sierra Leone, where it provides earthmoving equipment to two mining projects, while in Botswana the company continues to enjoy the fruits of a strong working relationship with some of the leading mines. Kanu is one of the few equipment dealers to be found anywhere across the continent that is able to operate in both Anglophone and Francophone countries, which in the view of Stephen means; “We’re quite unique in this respect, not many others are able to position like this because they have very different legal structures and ways of doing business. And this gives our customers quite a holistic view.”
Being one of the largest dealers and distributors of Liebherr and Bell, equipment, among others, across Western, Central, and Southern Africa, is undoubtedly advantageous to the company, However, as Smithyman was keen to stress, it takes more than equipment to achieve market leader status and stay there – rather, in his view, it is more a matter of values, knowing what customers want, and then delivering beyond their expectations:
“It’s not about providing cheap equipment – it’s about delivering productivity and longevity, and the ongoing maintenance of that equipment, and ensuring that the cost per ton is very low.”
As he was keen to stress over the course of the interview, the Kanu team, from its directors and senior management teams to the man on the ground is committed root and branch to its mantra, ‘’Experience The Support,’ and for good reason. Rather than the company’s impressive range of world-class products, instead, it is the company’s support and maintenance services post-sale that is the key to Kanu’s success. Upon starting the business, Smithyman soon found that the lack of support, poor availability of spare parts, and disinterest after the deal was done, was a common complaint from Kanu’s growing customer-base.
“We really care about our customers. Our whole existence is orientated around the support we can give to our customers, and the support we can give to our staff. Our slogan means that through supporting our staff, supporting our colleagues, we can then support our customers. That’s what’s embedded in our organisation.
We’re a very young team, we work hard, and for me the most challenging thing and the most inspirational thing is when you can do the difficult things really well.”
Therefore, it became apparent very soon that entering into a technical partnership with the leading equipment brands like Liebherr and Bell, with a strategic view to dominating the aftermarket spares business, would quickly allow Kanu to gain market share at the expense of its rivals. By representing a lot of leading brands in the aftermarket space, it can help its customers reduce the cost of doing business. And word soon spread that Kanu Equipment did things differently; communication doesn’t stop once money exchanged hands for the initial purchase. There’s aftercare, support and maintenance – it’s an ongoing service.
“Even if you’ve got another type of machine we can still provide a spare part to get your machine going. We are well stocked with aftermarket spares
In every country and region we have maintenance staff and mechanics on-hand, we have workshops and spare parts centres within easy reach, and we employ 490 people, made up of expats and locals who we have trained at training centres like the one in Botswana.”
With further expansion into the last remaining region of sub-Saharan Africa, East Africa, and with the mining and construction sectors set to surge over the years to come, to say the least, these are exciting times for the company, as well as the African mining sector, which, having survived a gruelling downturn that shocked even industry veterans in its severity, is now set to reap the rewards of an overdue market boom.
“We’re expanding this year into Tanzania and Kenya. Our overall objective is to become the biggest supported dealer in Africa, We want to cover the African map with the exceptional brands that we represent.”
Can you provide us with a brief overview on Kanu Equipment and its operations?
SS: The business started four years ago. We started in the Republic of Congo, renting machinery for the construction sector. Our first exposure with the mining sector was through one of the mines of Exxaro. Since then we have expanded into Ghana, where we are very strong in the artisanal gold sector. We represent Bell and Liebherr in many West African countries. Although there has certainly been a downturn in mining, this has not affected us greatly. In fact, we have seen growth in Ghana, Ivory Coast and Liberia. We are also expanding into Sierra Leone with two mining projects for which we will provide earthmoving equipment. In Southern Africa, we are very strong in Botswana, with Debswana being our largest customer. BCL was also one of our largest clients prior to its liquidation. The reason why we have not suffered greatly from the mining slump is because we perform very well in after sales support and spare parts delivery. We believe we have the right business model to survive the downturn.
What are the challenges of the African regions where you operate in in terms of logistics and import duties?
SS: Every country has a different regime. We are one of the few dealers to operate in both Anglo and Francophone countries in West Africa. Obviously, in certain countries it is more difficult to operate. In Sierra Leone, the system is quite relaxed, but in Ivory Coast and Congo it can be very expensive to operate in. In Ivory Coast, for example, the government is supporting us by granting us certain tax exemptions with our investments. We are opening a central spares hub for West Africa in Ghana and we hope that the ECOWAS conventions get approved to open up all the regional markets. This would be remarkable in terms of the free flow of goods and opportunities.
How can technical support teams operate efficiently in these regions?
SS: In every country we have mechanics on site. We usually have workshops outside the capitals or main cities and a team on the site of operations. To operate, we build containerized spare parts centres in these locations. We have a large training centre in Botswana, which has been qualified certified by Liebherr for training. We also employ expats to facilitate with the training of locals in these countries. Given that work permits can be tricky in many of the countries where we operate, we focus on training of the local population.
Have governments been supportive in the establishment of training centres for the local population?
SS: We have had a few initiatives. One of our shareholders is actively involved in offshore development programs and funds for Africa. At Kanu, we want to attract funds to develop the skills and develop the areas where we operate, this is beneficial for both sides since it stimulates the business and communities.
What share of your clients is from the mining sector?
SS: I would say that about 45 per cent of our sales are directed to the mining sector, but indirectly, this percentage could reach 60 per cent of our clients. Other important sectors for us are construction and agriculture.
How have the demands and needs of your clients in the mining sector evolved following the downturn?
SS: Within Africa, there is a lack of liquidity, so a lot of our customers opt for equipment rentals. This is especially common in the artisanal gold mining sector, where our clients literally pay for the equipment as they get their gold. We offer finance solutions through a fund in Mauritius. We support our customers throughout their operations, ensure they work optimally, and then pay us.
Do you find the equipment sector overcrowded?
SS: Our main competitor is Caterpillar and its dealerships. In many markets the sector is very competitive, with the exception of some of our smaller markets. Therefore, we have found that our competitive advantage is to support our clients in the best possible way through after sales services and spares provision. Service is the key differentiator. When you support your clients by ensuring that your machines are always operating, then you lower their costs and this is very important for them.
How would you describe your cooperation with Liebherr and Bell?
SS: We get very good support from them. Generally, the spares availability is very good and they support us by keeping stock on the ground. Liebherr has reduced costs and made their machines easier to operate and repair, benefitting our African customers. Both companies spend a lot on R&D and they assess us every six months on new developments. We also have feedback sessions every four months.
What is the driving force behind the business?
SS: For me, it is all about the opportunities that we have created in the markets where we operate. The fact that you develop skills for people and provide them with jobs is very satisfactory. This is what I am proud of.
Nobody who has spent a little time in the province of KwaZulu-Natal could fail to be aware of the importance of sugar to the economy of the region. The growing area extends from the province’s South Coast through the Midlands and all the way to its border with neighbouring Swaziland, also a sugar-producing nation, to the north. When harvest time arrives, the crop provides a welcome source of work and much-needed income for KZN’s rural communities as well as an enticing snack for local children. The practice of cutting the crop manually has persisted and requires backbreaking effort on the part of the cutters. However, to get the crop loaded and on the road to the sugar mills, the farmers rely on the remarkable abilities of the 3-wheeled machines known as cane loaders. Continue reading
Since humans first started to build permanent dwellings and experiment with alchemy and new methods of preparing food, there has been a need for equipment capable of reducing large lumps of material of varying degrees of hardness to produce smaller and more manageable particles and, on occasions, even to reduce them to a fine powder. For example, colourful minerals were frequently ground to a powder by members of ancient civilisations such as the Egyptians, who used them to prepare the pigments used to dye clothing or perhaps as the basis of paint for writing and decorative art. Similarly, it was, and still is in many parts of the world, the practice for village women to pound corn or wheat in order to reduce it to the consistency of flour. Continue reading
Along with mining and agriculture, forestry has become one of the cornerstones of the South African economy. Although not among the world’s top ten exporters of this commodity, thanks to competitive pricing, growth in the exports of local wood is becoming responsible for an increasingly significant portion of the nation’s hard currency earnings. Continue reading
South Africa, in common with many other countries on the African continent, is highly dependent upon its local agricultural industry to meet both its domestic requirements and the demands of the export market. Given the semi-arid nature of the land and its age that as left it low on certain nutrients, in order to provide an adequate yield, farms are frequently required to be much larger and are often far more remotely situated than farms in other parts of the world. Continue reading
