Doing business in Africa is challenging for any company in any industry sector, but with 40 years of experience in the field, TATA has established itself as a company that is both commercially successful and relevant to the diverse demographic and geographical communities in which it operates across the continent.

During the period of its operations in Africa, TATA has observed and experienced vast changes; greater economic prosperity for more Africans, the evolution of the African Union, the establishment of a pan African parliament and the push for a single currency, the forging of closer regional trade ties including the African Continental Free Trade Area, and the rise and fall of democracies. With all its complexities, Africa is, however, ultimately defined by its resilience in the face of strong historical, social and economic head winds.

When TATA entered the African market almost half a century ago, there were no blueprints on how to manage and operate an automotive business. With nothing on which to model itself, the company created its own blueprints, establishing best practices and learning along the way, eventually becoming what it is today – a one-stop-shop solution provider moving people – from private cars to small passenger vehicles for scholar transport, larger buses for mass transit taking people to and from work, to luxury liners that take people across borders, also moving essential commodities and services including transporting water to small remote villages which are not connected to main water systems. TATA is facilitating trade on the continent, moving goods and stock from manufacturing and production centres to retail and other outlets, supporting mining activities on sites across Africa and in the agricultural sector, our vehicles are driving and supporting food security.

Over the last few months since my appointment as head of TATA in Africa, I have had the opportunity to travel and observe TATA’s operations across many of the 12 countries in which we have a presence. While each country presents its own unique set of challenges, there are also many opportunities for growth and development. 

The role of mobility in driving economic growth

Despite the growth of big cities in Africa, the continent still has many vast remote rural areas that are underserved by basic services. Eastern African has the highest rural population at almost 70% with only 34% of Southern Africans living outside urban conurbations. But business in Africa is all about reaching your customer, and having a footprint across the continent provides wider commercial solutions that move people, goods and equipment.

Improved mobility solutions fuel trade, enhance supply chains and support industries including mining and agriculture. Mobility provides access to places of education, healthcare and other services. Commercial vehicles are enablers of the economic activity that Africa so desperately needs. Innovations within the greater transport sector, including after sales servicing are vital to the continued growth trajectory of Africa.

TATA has built its business and reputation on its agility and adaptability which are key to successful operations in Africa. Creating partnerships and networks in complex demographic and geographical markets is invaluable, as is observing local cultures and customs. Forming local teams that are representative of each region, blending skills, languages and cultures with international expertise strengthens operations in difficult environments.

It is important in Africa to remain agile given the shifting economic cycles, policy and regulatory changes and infrastructure constraints. Finding ways to work with and around these external factors has been one of Tata’s guiding principles over the years.

In the same way that employee teams are tailored to their specific region, the company’s broad product portfolio across the continent allows it to address different market segments within each country, aligned with Africa’s dynamic needs – whether through financing models, technology integration or sustainability initiatives. Operating in Africa requires anticipating and responding to the ever-fluctuating conditions across the continent.

Looking ahead to the next decade, the greatest revolution in the mobility sector is likely to come from trends in green mobility and digital transformation in vehicle and fleet management. In the overall economy, women and youth are likely to play greater roles, and the gradual formalisation of the informal economy will reduce the reliance on cash, bringing more people into the digital economy. 

For companies and corporations, being forward thinking, anticipating customer needs and maintaining the highest standards of production and service requires something more than top-down management. Surviving and thriving in Africa requires partnerships, dialogue and broad collaboration across industries and disciplines. 

• TATA Africa Holdings CEO Jacques Taylor is responsible for driving the company’s strategic growth and operational footprint across 12 African markets. With over two decades of leadership experience in banking and business across the continent, he is passionate about unlocking Africa’s economic potential through mobility and infrastructure solutions.