POSITIVO chief: Why we are opening a plant in Rwanda

On the sidelines of the three-day Innovation for Africa conference held in Kigali last week, Rwanda signed an agreement with POSITIVO BGH, a Latin American multinational, which manufactures laptops, computers, tablets, and other electronic gadgets, to put up a production plant in Kigali. The firm which makes an annual turnover in excess of $2.5 billion annually and with over 40 years of experience, will be one of the main suppliers of ICT equipment to the Ministry of Education. Juan Ignacio Ponelli, the POSITIVO president in Africa spoke to The New Times’ Collins Mwai on their investments and plans in Rwanda. Excerpts: Of all countries in Africa, why did you settle for Rwanda? The government here is commited to developing the country. Rwanda’s GDP growth in previous years has averaged 8.8 per cent. There has been stability in the country which attracts investors. We share a vision of growth with Rwanda and, in pursuit of this vision, it is important that the private sector engages with government. What will be the capacity of the plant you plan to build? Once the plant is operational, we will be ready to deliver about 700,000 units per year. We expect to begin production by March next year (2015). How much are you looking to invest? We are listed in the stock exchange and regulations preventing us from revealing such details. With such capacity, do you think you will find market for your products on the continent? Africa is a very interesting market to which we are bringing worldwide technology and quality standards at affordable prices. The products will compete fairly in the market because they are going to be made in Africa and will be affordable. Do you think there will be enough competent human resources here or you will fly them in from Latin America? This was one of the issues we discussed with the government. We will bring a few people in senior management positions, but not for long. We plan to train local engineers and local staff so as to create more jobs. How was the reception by the government? Any incentives? As a company policy, we do not look at the government as clients but as partners. We did not need much incentives. What the government did, however, was to enter into an agreement with us on a certain number of computers they will purchase annually to allow us to have a starting point. Besides cash returns, what are some of the expectations of your firm as you establish a local manufacturing plant? We expect to build an eco-system, an education eco-system. It is not about brining hardware to people, it is about bringing solutions and education. Our ambition is to bring and avail education in a better and faster way. Our long term strategy is sustainable growth which will make people feel our presence on the continent. For those hearing of POSITIVO for the first time, what is it all about and how big is it? POSITIVO BGH is a joint venture between two business leaders in Latin America, one is POSITIVO, a Brazilian company with over 9,000 employees and revenue of more than $2 billion a year. The other is BGH, from Argentina, with more than 3,000 employees and revenue of about $1 billion a year. If you look at our growth in Latin America, you will notice that over the past eight years, our growth has been about 62 per cent annually, which is quite unique. We are looking to replicate the same performance in Africa. There is a lot of excitement from the local private sector players in ICT, do you have any plans for them? In Argentina, we made contests where people, mostly students, could pitch ideas of applications and the best ideas were developed into usable application through the firm’s support. We also offer internships and work closely with universities. Our idea here is to transfer knowledge to local people. It wouldn’t make sense to bring thousands of employees from Latin America, it would be very expensive. We hope to see Rwandans take ownership of what we will be doing. How is your production plan like? The first phase will be laptops; the second will be cell-phones and tablets. Depending on the market, we will bring the rest of our products. We share in the thought that you should not give a man food but rather knowledge that can enable him to fend for himself.

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POSITIVO chief: Why we are opening a plant in Rwanda