Local companies should shift their focus away from the short-term profits realised through imports and embrace performance-oriented local manufacturing to drive the South African economy and enhance job creation, First Tech Group CEO Andy Bertulis said on Friday.
Speaking at the official launch of the commercial and infrastructural services group in Johannesburg, Bertulis attributed the success of the now R4-billion group to its strategy of vertical integration coupled with a strong manufacturing focus.
“As South Africans, we often question our ability to compete on the international production and manufacturing stage, without realising that we are quite capable,” he said.
He added that a target-driven manufacturing strategy would enhance job satisfaction and improve overall productivity.
“We need to make factory-based jobs appealing through the establishment of performance incentives,” Bertulis said.
Moreover, the company was focused on creating sustainable job opportunities through its skills development programme, coupled with a targeted expansion into Africa.
First Tech was embarking on a focused pan-African penetration strategy to further establish a footprint on the continent and realise its objective of becoming the largest infrastructural supplier in Africa.
This would be achieved through the acquisition of associated entities focused on expansion within the company’s four divisions – construction, manufacturing, piping and mass distribution.
“By carefully identifying companies that have synergistic offerings with our existing portfolio we have been able to grow the group successfully in a modular but synergistic manner,” Bertulis said.
Further growth was planned for Kenya, Ghana, Tanzania and the Democratic Republic of Congo, with additional countries under consideration including Zambia, Zimbabwe, Namibia and Mozambique.
The group most recently acquired steel fabricator and erector Cosira, which would provide First Tech access to larger infrastructure, expanded service offerings and additional resources, while enabling the group to leverage on Cosira’s established client base in Africa.
“While we are proud of our roots and heritage as a South African company, we are proactively establishing a footprint in Africa. Furthermore, it is our intention to continue increasing our penetration of pan-African countries,” Bertulis added.
The company attributed its growth thrust into the continent to several local industry challenges, including militant labour action, a faltering mining industry, skills shortages and uncertain infrastructure spending.
The continent’s historical lack of infrastructure and the deterioration of existing infrastructure also provided impetus to renew focus into Africa.
Bertulis added that the company would continue to seek out companies and brands that would enhance and complement its existing portfolio and would benefit from the intellectual capital made available by this synergistic model.