With Africa forming part of BRICS, AECI's decision to expand its explosives business, AEL Mining Services, into new territories; namely the rest of Africa, Asia Pacific and South America, proves to be a clear-sighted decision.
Frost & Sullivan, global consulting and market research firm, recently completed a two phased project for the AECI speciality chemical cluster, to identify growth opportunities for the company in Africa and Latin America. Based on the outcomes from this study, Frost & Sullivan was able to identify potential channel partners for the firm, in both Africa and Latin America, to support their expansion into the regions.
"The key attributes in any expansion strategy is threefold: Firstly, to identify market growth within a country, based on overall economic indicators and on understanding the current market conditions", explains Frost & Sullivan's Consulting Manager Chantel Lindeman. "Secondly, by identifying the correct partners who align with the business and are also willing to form a partnership; and lastly, being able to acclimatise to the way of doing business in the new country, rather than taking any preconceived ideas about the business environment."
Graham Edwards indicated that AEL will be focussing on countries, such as Morocco and Mozambique, as these regions hold significant growth opportunities for the company. Frost & Sullivan believes this decision would be viable, as it bodes well with their expertise in the coal mining sector. However, for their Chemserve business, Latin America has proven to be a greater opportunity for the company, as this is a more matured market for chemicals uptake.
In conclusion, Frost & Sullivan believes that timing is fundamental with geographic expansions, and AECI is well positioned to continue their growth in Africa and other regions. Frost & Sullivan is delighted to be working with AECI as the preferred growth partner to support the company's operational expansion.
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