Electrical equipment and services supplier Actom will take over a low-voltage product manufacturing facility in Kenya from existing technology partner Schneider Electric as part of Actom’s industrial expansion into East Africa.

CEO Mervyn Naidoo says the company is planning to establish industrial hubs in East, West and eventually North Africa, which will provide a platform for the broader portfolio of the company’s products and services in these regions.

Actom’s takeover facilitates the company’s plans to target the Tanzanian, Ugandan, Rwandan and Ethiopian markets.

“We intend to use the industrial platform in Kenya to enter the East African market with our products and services. We want to expand to Kenya, where we will transfer intellectual property (IP) and, where economically feasible, set up manufacturing and establish our repair business there,” Naidoo says.

He explains that Actom’s range of IP in low-, medium- and high-voltage products spans a spectrum of transmission and distribution products, as well as power generation and associated products.

“This will be a platform for the broader Actom group to not only enter the East African market but also to embrace East African economies where we will employ people and use our IP to get actively involved, thus also growing both Actom South Africa and Actom Kenya,” Naidoo says.

He believes the African Continental Free Trade Area (AfCFTA) presents numerous opportunities for intercontinental trade, especially within the economies of countries such as Kenya and Tanzania, which are growing at more than 4% a year.

“Based on this, we expect there will be significant demand for our products. As such, we plan to transfer our full scope of products and services into the African markets. Our offerings will be linked to demand, with demand in the region driving the prioritisation of what goes into the market first. The intention is to gradually increase our offering,” Naidoo says.

Actom celebrates its 120th anniversary this year. It currently manufactures products that range from boilers to control equipment, uninterrupted power supplies, light-emitting diode lighting, solar heating systems, transformers, switchgear and turnkey engineering, procurement and construction solutions. The company also provides full aftermarket repair and service solutions to its customers.

“By offering repair and service solutions, we can ensure the sustainability of our products, literally from cradle to grave. It would be fruitless having products that cannot be serviced; hence throughout the full lifecycle of the product, we can provide support and optimise lifecycle costs and availability. In this way, we can maximise availability and performance for our customers,” Naidoo explains.

Schneider Electric country president Kenya Carol Koech says the move to transfer the manufacturing and assembly plant in Kenya to Actom allows Schneider Electric to focus on positioning the company with key technology partners, as it carries out its strategy to prioritise its digital offerings, software and services to enhance its service offering to its customers.

“The move allows Schneider Electric to focus on expanding its reach in Eastern Africa, commercialising more offers, and growing its partner network to serve its customers with more technology and competitive value,” Koech says.