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ITWeb Africa

Thursday, Oct 17th

DCC wants more than 'pockets of accomplishments' in SADC

DCC wants more than 'pockets of accomplishments' in SADC

South African IT solution distributor Drive Control Corporation (DCC) has confirmed its intention to focus more on the SADC region and capitalise on "diverse pockets of accomplishments" to generate stronger growth as current ambitions are not being met.

This is according to Jenny Rex, Sales Director at DCC, who said the company will immediately leverage its branch office presence in Botswana, Mozambique and Namibia, along with ongoing support for Lesotho, Malawi, Swaziland, Zambia and Zimbabwe via its team in Johannesburg.

DCC supplies 400 reseller partners throughout the SADC region and Rex said the company will utilise its SADC branches and relevant infrastructure to ensure "good local stock availability".

She said despite the challenges, the company remains determined to gain ground in the region.

These challenges include currency fluctuation and limited availability of currency, as well as language barriers, among others.

"Each SADC country has its own set of challenges. At various times, local currencies have undergone major fluctuations. There have been, and there continues to be, restraints in certain countries in currency availability. Language barriers can also exist. Onerous local bureaucracy requirements hamper the speed at which events can happen. All countries contend their willingness to do business and encourage direct foreign investment but the substance is often very different," said Rex.

Credit lines are an imperative to facilitate business so a certain appetite for risk is an essential, she added.

But the region itself has its share of sophisticated end users Rex said, and is "certainly on par with South Africa." However, SADC's technology cycle is not as advanced and there is a commensurate demand for more entry-level products in these countries.

"None of the SADC countries have large populations so there simply aren't the economies of scale as in South Africa. The distribution landscape is similar to South Africa's. However, the most negative form of competition exists from the increasing infiltration of counterfeit printer cartridges. At times, despite having very clear geographical parameters in our distribution contracts, we are faced with parallel imports from Middle Eastern countries," Rex continued.

While the DCC acknowledges that few SADC countries are currently showing GDP growth, the company has confirmed a long-term commitment to the region, with the focus on a steady supply of what Rex describes as "premier computing brands".

"We have seen other distributors divest from some of the more complex countries altogether or commit to a limited presence with a "let's wait and see" approach. As a private enterprise we are more agile which undoubtedly gives us an advantage. We are delighted to be able to include Lenovo in our portfolio ... Lenovo also enables us to supply tablets to which we have previously not had access."

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