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Thu, Aug 27, 2009
The Business Times
Taking the road less travelled

By JUSTIN CHAN

POWER supplies are not much of a concern here in Singapore but in Uganda, having uninterrupted and constant access to electricity ranks high up in the list of demands that businessmen have, right next to 'making money'.

Cheryl Tong, managing director of Pursuit Pte Ltd, saw this as a business opportunity after a backpacking trip there. Giving in to her inherent desire to go into business, Ms Tong set up an outfit selling uninterruptible power supply (UPS) systems in Uganda.

Although intermittent blackouts in Uganda are common and demand for UPS systems is high, none of the other major distributers of UPS systems such as APC and Livet has direct offices in Uganda itself. Rather, those firms operated through local agents, which typically means increased costs to all parties involved and which introduces additional logistical challenges into the equation. Pursuit, by contrast, decided to set up direct presence there, in the capital city of Kampala.

Still, running a business in Uganda would typically present problems far beyond the standard bureaucratic headaches one would expect elsewhere in the world. So why did Ms Tong pick Uganda - which, due to the ongoing conflict between the Lords Resistance Army and the government in northern Uganda - can hardly be said to be the safest place in Africa?

'Compared to the rest of Uganda, Kampala is relatively safe,' she says.

But she recalls one of her trials. After touching down at the airport one time, she had to wait for a week to claim her misplaced luggage. When she finally did, the lock had been broken, half her items including medication were missing, and she had to pay to get her luggage back.

'People who complain about poor baggage handling at Heathrow should take a trip to Uganda,' quips Ms Tong.

Personal security arrangements are also paramount, she casually mentions. There are 'countless' attack dogs patrolling the grounds of her office, not to mention guards armed with automatic rifles.

Despite all these challenges, it has been a fruitful experience for Ms Tong. Pursuit broke even within a year and is expecting to hit $1 million in sales next year. Ms Tong intends to expand the UPS business to other parts of Africa, such as Congo and Sudan.

'Of course, this is a very tricky field to navigate, and it will be necessary to be cautious with our expansion strategy, particularly in light of the fact that we have not found a local partner we are sufficiently comfortable with for taking on additional requirements,' she says.

However, there is one deal-breaker that she acknowledges could put off daring Singaporeans willing to brave the perils of doing business in Africa. 'The food is a real problem there,' she admits, mentioning that, among other issues, 'rocks can be mixed in with your rice, water for instant noodles is a limited resource'. And that doesn't include the other associated food-related issues that she says would be the biggest turn-off for food-loving Singaporeans.

This article was first published in The Business Times.

 

 
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