INTERVIEW
Eric Vemer
CEO of Group Five
With the international community focusing more on Africa as an investment destination, Eric Vemer, Group Five CEO, shares his views on why the continent is the next big investment destination.
“A big opportunity that the South African banks and credit institutions have is that these institutions have a significantly higher credit appetite in the country than many international institutions. Therefore, from an investor point of view, you have a big advantage if you headquarter from here.”
FDI Spotlight: Looking at the next 3 to 5 years, what would you say are the trends and developments to focus on and where do you see the growth for South Africa and Africa is going to come from?
Eric Vemer: The key growth areas are focused around the fact that there is an almost unlimited demand for infrastructure across our continent. There is also an unlimited amount of finance for the right deals. Group Five sees it all the time. The macro environment in Africa has been challenged, given what has been happening in the commodities cycle globally. Therefore some of the momentum of private sector interest and investment has declined due to the decline in those prices, especially the price of oil. However, there has been some recovery in the last 6 or 12 months. There has been quite a lot increase in budget price requests for mining companies and a lot of the sovereign wealth of the African governments come from the revue of mineral revenues and exports and this does provide some basis of confidence in the recovery in Africa.
What are your views on human capital within a company?
Eric Vemer: You have to have a strong and clear set of values. Cultured values eat strategy for breakfast. Entrepreneurs have to flourish and you have to place a strong focus on people, excellence, transformation and integrity. At Group Five we drive a very open culture, where it does not matter what area or level you are in, everyone’s door is always open.
Do you feel that South African leaders have a responsibility to rebrand the country to the international community and to take the capabilities of South Africans into Africa?
Eric Vemer: Yes, I absolutely do. Many South African companies tend to be a little bit arrogant and aloof; they do not always have the best reception in Africa and they get removed. You have to be very aware of that and improve relationships in all areas with the locals so that they feel involved and like they are part of what you are trying to do. You have to get into the mind-set that you are investing with them as local partners who want to grow business and grow the country together. This way international companies and investors will come to your organisation when they are looking into doing serious business into Africa.
Why do you believe South Africa and Africa as a continent is the next big investment opportunity?
Eric Vemer: Africa is one of the last frontiers of growth and opportunity. The continent has a growing population of young people with strong aspirations of improving their own lives. So you are starting from a very low GDP per capita, so you are starting with a low base. Therefore the macro content on the continent for the youth is significant; this covers all sectors from consumer goods to infrastructure development. First movers who create strong brands on the continent will do well over the next 20 to 30 years. Africa also has a welcoming environment, despite some macro challenges such as corruption and it is remarkable how accessible how senior leadership in Africa is.