CZ Electronics is a truly South African company and OEM (Original Equipment Manufacturer) that creates products specifically for the South African market, bringing consumers the familiar AIM TVs, sound products and electronics seen at Pick n Pay stores, among other products.
Beyond AIM, though, CZ Electronics is also extending its reach throughout Africa. And Malesela Kekana, Head of Regulatory Affairs and SADC Business Development for CZ Electronics, talks about the company’s journey of expansion into the continent.
AIMing for success beyond SA shores
Malesela says, “The pandemic has affected business operations everywhere. And most of the initiatives we had planned at the beginning of the year stalled temporarily. But while some of the engagements we had lined up didn’t work out, we do have big plans in the pipeline for 2020 and 2021”.
He continues, “Going forward, we will be pursuing opportunities in the SADC block. The free trade agreement in the SADC community enables us to drive our expansion strategy in this region. It gives us a great platform as most of our products are compliant in terms of regulations.
Quality manufacturing for Africa
“The products that we are taking to the continent meet all the free trade agreement requirements. And we are looking to capitalise on the arrangements that are already in place. The product offering will be driven by our core business, which is contract electronics manufacturing.
“For example, a businessperson in Zambia might want to develop a product – like an electronic board that could be used in industrial processes. It’s CZ’s business to manufacture those boards.
“It is part of our mission to provide electronic components for a wide variety of uses, that could potentially drive many African businesses. It is in our interest to support African business and entrepreneurship.
Industrialising Africa
“Over and above contract manufacturing, we also, of course, manufacture consumer electronics products – like TVs and sound. As an OEM, we create bespoke products for other companies as well. Our approach is to start with the consumer products in our catalogue. And building on that, we are aiming to support the industrialisation of the continent.
“We support a variety of industries, including mining, transport, petroleum companies and many others. Any sector that uses electronic components in their business is on our radar. CZ’s empowerment philosophy is also a driver. We are pushing for local manufacturing wherever we can – both at home and within the African market.
“We aren’t looking to exclusively drive South African-made products into Africa. Our concept is to localise certain operations in the markets we expand into. For example, we would manufacture all the boards and electronic components for a TV in South Africa and then assembly would be done in Zambia – creating opportunities for local people, who will provide a finished product.
Engaging with African partners
“We continually engage with our partners in various countries about where there may be a need to invest in assembly plants. We are also looking at creating opportunities through logistics firms who can provide support in-country by distributing to various retail sectors.
“We are looking at many areas where we can provide value locally – from a technician who can gives support or a local assembly line, to distribution companies who can take our products where they need to be. We are also looking to target retail stores, where our products could serve local consumers – as AIM does here in South Africa.
A positive response
“The response to our products in the SADC market so far has been really good. We manufacture quality products and serve the market well. In terms of business development, there is a big appetite from business to business partners who want to engage in opportunities with us.
“CZ is a leading contract and OEM manufacturer. We have entrenched ourselves as an entity that drives localisation and empowerment. And we will carry this philosophy through to the continent. We have established ourselves as a company that builds proudly South African products, made by South Africans, for South Africans. The same approach applies to our African partners.
“it is a responsibility to position ourselves, not only as a South African company, but a Pan-African company. We are in the fourth industrial revolution. And that is all about the connectivity of things. Anything electronic needs electronic boards and components. And we see ourselves as the drivers of localisation during the fourth industrial revolution in Africa in supplying those components”.
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