As more than 26 African countries have promoted economic recovery through construction and manufacturing businesses, it is expected that the construction market in Africa will grow to USD 109.6 billion, a 2.2 percent increase from last year. Various economic stimulus packages – railroad construction and electric power expansion – led by the governments are implemented, while easing restrictive policies. The South African government, for example, announced that it would expedite 62 infrastructure investment projects worth ZAR 340 billion to recover from the economic crisis due to Covid-19. It also seems likely that the Tanzanian government will continue to develop its economy via infrastructure establishment by reviving the ‘Tanzania Development Vision 2025,’ which has been slowed by the pandemic.
Hce incessantly developing overseas markets
Based on its agile promise, Hce has quickly been targeting emerging and African markets. As heavy equipment requires continuous follow-up support, Hce has offered quick customer service, including parts replacement and maintenance, and differentiated dealer experience based on the needs of local customers. It has recently received orders for 130 units of excavators as well as 415 units of wheel loaders and backhoe loaders (worth about USD 40 million) from Russia and Saudi Arabia. Especially, the equipment ordered by Russia is worth about USD 35 million, which well exceeded 40 percent of Hce’s Russian equipment sales last year.
The African market also shows how agilely and well Hce is implementing its customer-oriented response. Hce has recorded strong performance in Algeria and Sudan among 24 African markets where Hce operates and has been fostering its market power over all of Africa by accelerating reinforcement of its business network. The Hce business network as well as strategic localized marketing have contributed to this success. In Algeria where the government leads infrastructure development, Hce has established brand awareness through responsive customer service and provision of prompt part supply and maintenance.
Hce will continue to implement local marketing to increase its sales of construction equipment in existing markets with strong performance, while expanding the business with the success knowhow across Africa. To that end, it has taken the first step toward eastern Africa by concluding a new dealership contract with Nefc Group. With the partnership with Nefc Group as a regional dealer, Hce can strengthen its sales capacity in eastern Africa by expanding its sales network in five countries: Ethiopia, Djibouti, Somalia, Somaliland, and South Sudan. It has high expectations for the partnership with Nefc Group, which is owned by Mr. Mohammed Hussein Al Amoudi, one of the wealthiest men in the world.
A new-normal signing ceremony, beyond time and space
Hce-Nefc Virtual Signing Ceremony, a unique event that overcame a five-hour time difference, was held online at the Technology Innovation Center in Yongin to conclude the new African dealership agreement between Hce and Nefc. The two companies held an unprecedented live signing ceremony online due to the coronavirus pandemic. Executives of Hce in Korea and Nefc in Dubai – Moon Jae-young, executive director of Sales Department, Byeon Jeomseok, director, and Kim Pan-young, director, Mr. Hussain Al-Amoudi, Nefc CEO, and Mr. Waleed Sharafaddin, NEFC CFO – participated in this virtual ceremony.
A Key Partner for Eastern African Market, Nefc
Nefc is an industrial equipment dealer in eastern Africa. It deals in a wide range of products, from heavy equipment, machinery, vehicles, buses and trucks to related alternatives and components, and offers lease service for construction equipment. Nefc also plays the role of local dealer for global brands, such as Ford, Peugeot and Nissan, based on its strong local influence in construction as well as in agriculture and distribution industries in Africa.
Through the dealership contract with Nefc, Hce can implement its full expansion in the eastern African market. Nefc will promote the sale of diverse equipment types, including excavators, wheel loaders, backhoe loaders, skid loaders and motor graders, in eastern African regions – Ethiopia (Ries Engineering), Djibouti (AC Ries), Somaliland (Netco and Somtrac), and Djibouti Free Zone (Eat). As an initial order of 40 units was received, expectations for the business between the two companies is growing.
Nefc is an excellent partner that can perform business agilely considering local cultures and market conditions. With this dealership, it is expected that Hce will consolidate an important foothold to become a leading construction equipment brand in the entire African market beyond eastern Africa.
A Contact-free Signing Ceremony, Overcoming Five-hour Time Difference
The signing ceremony was conducted using Zoom, a video conference platform, to overcome the five-hour time difference and 6,800 km between two cities, Yongin, Korea and Dubai, UAE. It was a smart way of communicating regardless of location and the difficulties due to Covid-19.
The event began with introduction of guests, both companies and their business projects followed by congratulatory addresses, signing ceremony and commemorative photography. During each party’s presentation of past projects, embellished content on the large screen made a forward-looking impression.
Congratulatory addresses by Mr. Moon, Hce Executive Director, and Hussain Al-Amoudi, Nefc CEO, and commemorative photography also took place online. In their congratulatory addresses, the two representatives shared expectations about future collaboration that the two companies will carry out. As contact-free became the new normal, the unique commemorative photography also drew attention. Both signed the contract at their seats and then looked over each other’s document through the screen and took pictures.
Mr. Moon commented, “I have frequently used video conferences due to the pandemic since last year, though taking pictures in conjunction with the new contract-free trend was especially impressive. We met virtually today, but I look forward to meeting in person very soon.”
With the special virtual signing ceremony, Hce set a milestone in the African market. Hce and Nefc look forward to achieving greater growth through their partnership, an important steppingstone for targeting eastern Africa.
Source: Hyundai CE