Tschudi Group
Tschudi Group is a Norwegian family-owned company with roots back to 1883. The group builds on its three main commercial competencies; Shipping, Logistics and Offshore Services in order to create joint transport solutions. The group is represented in more than 12 countries, and last year, in the middle of the pandemic Tschudi Group opened their second office in Africa in Maputo, Mozambique. We have talked to Thomas Vestergaard, Managing director of Tschudi Mozambique regarding the companies business venture in Africa.
Tschudi opened their office in Maputo, Mozambique in July 2019. However, their connection to Mozambique draws a line back to 2016 when they started a partnership with the local Mozambican company Energy Works. The Tschudi Shipping company has been heavily involved in the Oil & Gas industry for many years, and their broad range of services for transport, ship management, recruiting offshore crew, and visa services match the demands that work in Area 1 and 4 will create.
- During the establishment of our new team, I traveled forth and back to see fit that everything developed according to plan. Things rarely do in Mozambique. I quickly found that my physical presence was needed in order for everything to progress in a timely manner. In March 2020, after several trips to Maputo, I decided to move here indefinitely. To me, the business opportunities were too interesting to miss. At the time Area, 1 and 4 were quickly developing and it was clear that the chance to part take in the early stages of the project had an expiration date.
It takes time
Mr. Vestergaard has now lived in Mozambique for about one and a half years, and his first conclusion is that there are no golden rules for a successful business venture in the African market.
- Life here requires the ability to live in the moment, so try not to plan in detail for your future business projects. Accept that things rarely pan out as you planned it. The ability to adapt to new and unforeseen challenges is pivotal. If you try to run your business here as you would do back in Scandinavia you will be at a loss. It seems on paper to be an easy fix to set up a company in Mozambique but it is not, it is very time-consuming and costly. We are lucky to be blessed with a reliable local partner.
Also, the pace can be incredibly slow and patience will be your best friend!
Networking is extremely important. Things are not as official here as they are back home. If you want to know, what is actually going on in the industry you need to enter the streets, have dinner with business partners, small talk with locals and show up to as many events as possible.
Mr. Vestergaard has several tips for companies and investors to remember when it comes to the business culture in Mozambique. Firstly it is important to understand that the locals and expats are not expected to act the same way. While locals rarely show up on time, expats are expected to.
- If I have a meeting in town I always ensure to show up early even if it means that I have to wait for long.
Secondly, negotiating with potential clients can be a timely affair.
- I try to focus on creating informal relations with small talk when I meet people first. If you get along with your employees, business partners and clients on a more personal level it will make doing business with them much easier.
Thirdly, remember never to use peoples’ first names unless they have asked you to.
- I always go for Mr. or Mrs. followed by their last name. And I must say, it takes time to learn how to do business in Mozambique!
His key advice is to expect many challenges if you want to run an office from afar. If you are serious about establishing a successful business here, you need to be here physically. Create a team of locals. After all, they have the necessary knowledge to carry out projects in the area. He believes that magic happens when expats and locals collaborate.
Implications due to the pandemic
- When I first moved here in March Covid-19 was of course an issue. Uncertainties as to how things would evolve created tension and some companies even decided to withdraw from the country. At least for a while. However, things never spiraled out of control here as much as we could have feared. The operations have mostly have been affected by delays, definite cancelations have happened very seldomly.
While Covid-19 without a doubt has impacted everyday life here, for both locals and expats, I think the terror in Palma March 2021 demanded more urgent attention. Both situations pose direct threats to how life in Mozambique will be in the future. In some ways, I think it overshadows the current pandemic. In relation to how it affects our business, it most certainly forces us to pay special attention to safety. For our employees, the ships we manage, but also for the cargo we transport.
Learn more about Tschudi Group: www.tschudigroup.com
