‘New investments to bridge demand in cable industry’
Aberdare Cables, a cable manufacturing company based in South Africa, has stated plans to bridge the gap of Nigeria’s demand for cable, noting that the current capacity available in the country is yet to meet the demand of Africa’s biggest market.
The Group Export Manager, Aberdare Cable, Johannes Mpotu, explained that Nigeria is key for any manufacturer’s quest to be successful in the continent, reaffirming the company’s commitment to uphold the standards set in the Nigerian cable market.
Mpotu at a stakeholders’ forum in Lagos, explained that plans are also underway to set up a facility in Nigeria, pointing out that Nigeria is a market that cannot be ignored.
In his words, “What we are trying to do is not to be everything to Nigeria, but trying to find the gap in the market so that we understand the value chain and understand where we need to play as a business. We are a manufacturer of cables within the total value chain, but might not necessarily come in to do everything in the country. We need to understand where we need to play and then decide on the extent of investment.”
According to him, Nigeria is understandably a very high, tolerant market with the best standard in the world in terms of cable production, assuring that Aberdare is not out to cut prices, reduce standards nor cut corners.
“We will be guided by this market on what is required and what is available for us as a market to participate. Quality is very synonymous with our brand and we just want to be a player in this market, the demand is huge and I think the capacity available in the country is not enough to meet the Nigerian cable market,” he stated.
He said Nigeria’s educated and entrepreneurial population would go a long way to support its drive to create job opportunities for the nation’s youths, adding that the company would also deploy the use of available local resources when it finally decides to invest in the country.
“Nigeria is a big market and apparently if you set up a facility here you might even battle to sell outside Nigeria because Nigeria will consume your capacity. So for us this is the value we are bringing into the Nigerian cable market. It will take about a year or two before we firm up our decision to set up a facility here because Nigeria is a market that you cannot ignore. In two years we should be able to announce the extent of investments,” he said.
The Country Representative, Nigeria Market Development and Expansion, Oweh Mba-Sam, said acknowledging the fact that Nigerian cables are the best in the world, the company is strategizing on how to maintain the quality while also bringing down the cost of labour to compete favourably in the Nigerian cable market.
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