Euro Commercials Limited (EuroCom)
Owned and operated by Tanzanians, EuroCom is a one stop logistics service provider that handles containerised goods, construction new materials, warehousing and distribution, and brings efficiency to any business even in the most challenging environments.
With unmatched business skills and a regional footprint in Tanzania and throughout East Africa as well, EuroCom developed a deep rooted knowledge of the local markets and the different needed logistics, warehousing and distribution capabilities and were always known for providing unrivaled customer service, driven by a solid vision and mission statement.
To be the most outstanding transporter and logistic experts in Tanzania and East Africa.
To provide world-class logistic transportation services.
EuroCom takes pride in all the projects that have been undertaken and successfully executed with various esteemed partners across different industries both locally and internationally. The company has also expanded into the publishing sector.
EuroCom publishes the famous MAN MAGAZINE, a corporate and social magazine in Tanzania, profiling CEO’s and other notable Tanzanian and international men who have successfully climbed the business, political and social ladder. Some of the key men profiled includes, Azim Jamal (corporate sufi), Nehemiah Mchechu (CEO National Housing Corporation) . Mohammed Dewji (MO) CEO Mohammed Enterprises, Lawrence Mafuru, CEO NBC Bank,(PART OF ABSA GROUP). Mustapher Sabodo, a philanthropist and retired financial hedge trader, Rene MEZA, CEO VODACOM Tanzania Ltd, and Sebastaian Moshingi, CEO Tanzania Postal Bank, just to mention a few.
Mr. Dismas Leone Massawe is the CEO and Managing Director of EuroCom, started working in the company since inspection back in 2003.
Equipped with a unique blend of English and Tanzanian education and some great managerial and consultancy experience under his belt, Mr. Massawe has managed to enrich the business environment in his homeland Tanzania and continues to bring numerous contributions to the logistics sector up to date.
Please comment on the business strategy and philosophy of Eurocom and the future growth strategy.
Eurocom growth strategy plan has an overall end goal with specific tasks and intermediate milestones to ensure we grow as part of getting from A to B by putting together a growth strategy that will ensure maximum growth for the company and thats what we are doing at the time. And part of this strategy is market penetration, the least risky growth strategy for any business is to simply sell more of its current product to its current customers and thats what we have been doing at the time.
Apart from this, there is market development. As for us the next way up is to devise a way to sell more of our current product to an adjacent marketoffering our product and service to customers in another city or state. Alternative channels are another strategy growth for Eurocom, which involves pursuing customers in a different way such as, for example, selling our products and services online so as to reach a large number of potential customers. I would say our future growth strategy is product development. This is a classic strategy as it involves developing new products to sell to our existing customers as well as to new ones; we would ideally like to sell your new products and services to existing customers. And this is because selling our products to our existing customers is far less risky than having to learn a new product and market at the same time. And the new products for new customers will be sold alone and independtly from existing services and products provided at Eurocom.
What would you say are the current trends within the sector in Tanzania, and the outlook for the future growth of the sector within the country and on the African continent?
In todays world, companies strive to remain focused on functions and activities that are close to their core competence and where they enjoy competitive advantages. But they still need to perform a host of other functions in todays complex market place. This need opens the door for providers of business services. Over the past years Tanzania has diverted its economy due to foreign investment in the country and the hard work of people, which has lead to great opportunities for business people in Tanzania, such as to cross borders and do business in foreign countries. The current set trends in Tanzania have a lot of advantages for people in the business sector and the outlook for future growth of the industry.
What steps should be taken to position Tanzania as a more attractive destination for investors and increase FDI inflow to the country?
With its peaceful traditions, strong macroeconomic policies, stable political climate and plentiful natural resources, Tanzania has much to offer to foreign investors. The country has had considerable success in attracting FDI (foreign Direct Investment), I might as well say Tanzania has it, is already an attractive destination for investors. Tanzania is an ideal jumping-off point for accessing the growing market of the East African Community, of which it is a member along with Burundi, Kenya, Rwanda and Uganda. As a member of the Southern African Development Community, Tanzania offers access to the 13-member trading bloc, which has a population of more than 215 million people. Tanzania qualifies for the USAs African Growth and Opportunity Act (AGOA), which means that exports from certain sectors, including textiles, can be admitted to the USA without duty. The EUs everything but Arms (EBA) initiative allows Tanzania to export certain products to the EU without tariffs. Under Tanzanias Special Preferential Tariff Agreement with China, more than 400 goods made in Tanzania can be exported to China tariff-free. I think this positions Tanzania in a better place for foreign investment.
Can you give us your feedback on the potential impact of further development of the EAC, a potential single East African currency on trade and business within Tanzania?
There are much potential opportunities with the growth of EAC which comprises of Kenya, Uganda, Tanzania, Rwanda and Burundi like growth of market, free movement of labor, goods and services within the member states which will be of benefit to business people as well as an opportunity for the growth of economy. In 2012, the EAC was hoping to have had a single currency (monetary union) which will have a lot of benefit;
What can be done to end currency instability?
A single currency should end currency instability in the participating countries (by irrevocably fixing exchange rates) and reduce it outside them. Because the east Africa single currency would have the enhanced credibility of being used in a large currency zone, it would be more stable against speculation than individual currencies are now. An end to internal currency instability and a reduction of external currency instability would enable exporters to project future markets with greater certainty. This could unleash great potential for growth.
How would this affect the tourism sector?
Consumers would not have to change money when traveling within the currency zone, and would encounter less red tape when transferring large sums of money across borders. Travelers will no longer be forced to change money and pay banks the commission charges. A consumer might wish to make one large purchase or transaction across the border such as buying a holiday home or a piece of furniture. A single currency would help such transactions pass smoothly.
And what would be the business benefits?
Likewise, businesses would no longer have to pay hedging costs, which they do today in order to insure themselves against the threat of currency fluctuations. Businesses, involved in commercial transactions in different member states, would no longer have to face the costs of accounting in different currencies. Surprisingly, small firms stand the most to gain. Experts estimate that currently the currency cost of exports is ten times higher for small companies than for multi-nationals, who can offset sales against purchases and command the best rates.
Would cheaper mortgages lower interest rates?
A single currency should also result in lower interest rates to all member countries. The member countries will enter into a system of fiscal responsibility, which will enhance the currencies international credibility. This should lead to more investment, more jobs, and lower interest rates and for home-owners to lower mortgages.
How does Eurocom deal with the skills shortage, education and training issues in the country?
Improving peoples skills is crucial to address the many challenges Tanzania and Africa is facing. Our ability to remain competitive and to innovate relies on skills and education. Skills shortage, education and training is a big problem in Tanzania and Africa as it affects a lot of people leading to lacking great opportunities of doing business with the business world. A lot has to be improved like people should train and learn more from experts, open opportunity for unskilled labor so as to ensure they learn more as well as more training center for people.
Why would you say Tanzania offers an easy way of doing business?
It is still not easy to do business in Tanzania, though the government is trying to improve the investment environment. There is still a lot of bureaucracy in some government departments. This is evidenced by the report on the cost of doing business worldwide that places Tanzania in poor rank. Out of 183 economies Tanzania ranks 123 (2012) having dropped by one position from the previous 122 (2011). Other challenges facing business include high interest rates that prohibit borrowing from the financial institutions, fluctuation of the Tanzania shilling against foreign currency.