BUSINESS
Future plans
South Africa is going to continue to be our
anchor point for infrastructure, capability, and
decision-making on the continent, and so even
as we grow the business across the border,
the investment here is going to reinforce our
ability to develop capabilities across the other
countries even more.”
Over the past 18 months, Cummins has
engaged in a multi-year strategy to take the
company to a B-BBEE level of at least level 4.
“We know that we will be higher,” says Pimi,
“but our target is to reach at least level 4. And
we do not just want to check the box; we are
actually doing things that will be sustainable
in terms of developing suppliers, augmenting
skills for people who otherwise would not
have been employable, having management
representation and inclusion, assessing
ownership, and so on.”
Speaking of the outlook for South Africa and
the region, Pimi says, “I think the immediate
outlook is stable, there is not going to be a
radical change in 2018 for my business. But the
mid-term to long-term outlook is fantastic. The
mining industry is cyclical, and we have hit the
bottom — the only way is up. We believe that if
we stick with our customers during the difficult
time, which we have done, they will remember
that when things pick up. And although the last
couple of years have been difficult, the signals
are consistent from our customers and from
analysts around the world — commodity prices
are trending high, and we believe that the
future is good.” ■
An artist’s impression of the
completed facility.
Said Butera: “A company like Cummins has
choices on where we invest our limited
resources, and we are investing on the
continent of Africa, and we are doing it big time
— not only here in Johannesburg, but also in
other areas, like Morocco and Lagos, Nigeria.
We have also recently invested in a joint
venture in East Africa.”
As far as its footprint in southern Africa,
Pimi says that the company’s next step is
Mozambique. “We launched a big operation
in Zambia three years ago, and one in
Botswana. Mozambique is a great country with
huge mineral resources and with important
infrastructure projects, and Cummins plays
at the heart of these sectors. Whether it is
power generation, infrastructure development,
or mineral extraction, our customers use our
products to carry out their business, and we
need to be where they are to support them.
“South Africa is still our key market — our
anchor market — particularly for my business
area, which is the southern Afri can aftermarket
operations and distribution,” Pimi adds. “And
this is not going to change. Our goal is to
make sure we defend our current market
share in South Africa, because it helps us to
build our capability across the border in places
like Zambia, Botswana, and Mozambique,
but also to develop expertise in South Africa
that we can export all over the continent.
Cummins customers and senior representatives from Cummins, Attacq, and Zenprop gathered at Waterfall Logistics Precinct
for the ground breaking of the Cummins consolidated facility.
JANUARY 2018
13