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Re-Awakening of Mining and Construction Equipment Sales in SADC Countries

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Post Re-Awakening of Mining and Construction Equipment Sales in SADC Countries   Sat Aug 13, 2011 12:51 pm

2011 has shown a "re-awakening" of the SADC countries in recent months in their quest for good used construction and mining equipment.

Marsay Equipment specializes in stone crushing and screening equipment which serves both the construction and the mining fields and the value of sales to both sectors has been more or less equal. This is a slight change from 2009 and 2010 where most of the sales were to smaller mining operations. With the construction sector livening up, this is a clear indication of the resurgence of infrastructure development in our neighbouring countries, particularly Namibia, Botswana and Zambia.

A good sign for South African business is that the surrounding countries prefer to source equipment from South Africa as opposed to their European counterparts. From discussion with clients in SADC countries the underlying reasons for this are four fold:

1. South Africa has good value for money reconditioned equipment comparable in quality and price to anywhere else in the developed world.
2. SADC clients seem to have an inbuilt trust of South African suppliers and they do not fear to pay for the goods up front knowing that they will arrive on time and up to standard on quality.
3. Delivery is quicker and cheaper
4. Suppliers in South Africa know how Africa works and ensure that clients are supplied not only with quality equipment but also with continued after sales service

Countries showing the most signs of an upturn are Namibia, Botswana and Zambia. A significant percentage of enquiries originate from Zimbabwe but these rarely materialise into any real business. From the comments received from the potential clients, their reticence is very much related to the uncertainty surrounding government policy to "take over" the majority shares in all privately owned companies - take note JM - Bob's system ain't working!

A rent trend even among smaller mining operations is to beneficiate minerals locally thus ensuring that countries are not only getting higher prices for their goods but also creating additional employment within their sectors. Marsay Equipment is currently involved in a pilot manganese smelting project, which if successful, will be offered to other mining sectors in order to assist in mineral beneficiation. Benefication in Africa of minerals mined in Africa is key to developing the continent but this must go hand in hand with the development of the necessary skills needed in order to successfully compete on a global platform.
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