Certus Corporate Service
2008-05-19

An exciting and
challenging market

There are many business opportunities in North Africa, especially in Tunisia, which is of interest to Swedish companies. Primarily, these are the textile industry and especially jeans and treatment of denim. Other areas are mechanics, electronics, construction business and Swedish environment-friendly products in water and energy.

Through my company, Xena Consulting, I assist Swedish companies in the North African market and vice versa. This is how I got in touch with Wasaco in Malmö, the international operations of the company that produces the Swedish water saving system, Elless. I was assigned to help them find a serious Tunisian partner as well as assisting them at an environmental fair in Tunisia last November. The fair was very successful and their products got excellent commercial exposure.

 

Already last December, I received an offer from Enviro Concept to become an associate and Managing Director for the Elless products in Tunisia and North Africa. Enviro Concept, owned by Moez Belkhiria, represents Elless in North Africa. Enviro Concept’s business idea is to focus on supplementary environmental products in energy, composting, water etc. With future business opportunities in mind, I was on the plane to the African continent. A big but interesting step, since it is about products for the future on a continent where demand increases day by day and where Swedish products represent quality and knowhow. This combination offers great growth potential and that attracted me.

 

Having lived in Tunisia 1990-2004, I was fully aware that my life would change dramatically once again. After a month, both positive and negative things have happened. On the positive side, is a great reception in the market place for Elless’ water saving products. Sonede, the water distributor in Tunisia, has contacted us several times to attend their seminars. They have a specified assignment from the Tunisian president to inform the general public about reducing water consumption. At a consumption volume of 2000m3 water per year, you need to go through a control every five years. This means checking leaks as well as getting a subsidy to buy water saving products.

 

I must stress the importance of having a partner with a great local network. For example our partner, Moez Belkhiria, has introduced the products to hotel owners with 16 chain hotels. Without a large network, it is difficult to arrange meetings at the right level with ministries and organisations like the Hotel Federation. A week ago, I got in touch with one of our competitors who have been in the market for more than six years. Their partner had no contacts or interest in the business, which resulted in a poor introduction to the market.

 

Another important factor is to emphasise Swedish technology. With a professional approach, a straightforward marketing technique, quick answers etc, you quickly gain confidence from your Tunisian counterparts. This goodwill will be beneficial in future business relations. Wasaco’s professional basis of calculation has, without exception, highly impressed our potential clients. It demonstrates how much you will save by using these products as well as the payback period.

 

On the negative side, you will still find a number of dishonest individuals, especially in the consulting area, like lawyers and accountants. They charge enormous amounts without executing what was agreed upon. Thankfully, there are exceptions of very skilled and professional people, but you have to be aware. On the other hand, you normally get a lot of support from the administration when establishing a business. My advice is to try to do it on your own, but don’t hesitate to look for assistance by an accountant. Don’t pay in advance (possibly 10 percent) and make time to be there to follow up. I will continue with my consulting business, Xena Consulting, and would be pleased to be of assistance.

 

Another problem that may occur is to manage your personnel; keeping the distance, deciding who does what, delegating tasks and following up. Gradually you will realise who is able to work independently. You also need to motivate, reward and create a balance to achieve creativity and responsibility within your staff. In business as well as in relation to your staff, it is important not be too “friendly” and run a risk of getting exploited.

 

In spite of all these new routines, it is a great challenge to sell Swedish technology in North Africa.

 

Right now, we are looking for supplementary products like solar and wind energy or other products that may fit into our concept.

Madeleine Eriksson
Madeleine Eriksson, owner and founder of Xena Consulting
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