Today, Novasol Africa celebrates its 2 year anniversary since its ‘re-birth’ from the partial sale of Sol Trading. During this time, we have been blessed with considerable support from all of our stakeholders. Most of our suppliers have continued with the existing Sol Trading credit arrangements, our new bankers have made the changeover painless and efficient, and you our customers, have stayed with us and provided us with very gratifying sales growth over this period.
Not surprisingly, the political problems and misappropriation of foreign funding by the Moz government have now started to impact on economic activity in general and the devaluation of the Metical in particular. Novasol’s current order book is fortunately relatively healthy thanks to a few large project procurement orders we are in the process of executing. Our ‘bread and butter’ small and medium procurement work has however declined significantly in the past 2 months. Simultaneously the lack of foreign currency in Moz has affected our customers’ ability to settle their imports timeously and as a result, Novasol’s ability to extend credit. I would however like to thank all of you for the lengths you are going to, to chase up payments with your banks and we would like to assure you of continued procurement support from the Novasol team.
The difficulties being experienced by our Moz customer base has prompted us to review our market geographically, and re-evaluate our generally reactive procurement business model. To this end, we welcomed Graham van den Heever to the Novasol team in August 2016. His expertise in IT and digital marketing has been put to good use as we officially launch our website today and embark on a new and pro-active approach to reaching customers. Graham has also spent some time improving business processes with a mineral exploration/core drilling business, which has given him the opportunity to spend time in other Southern and Central African countries and gain some knowledge of the mining sector, which is currently absent from our customer base. Graham has therefore primarily been tasked with establishing a customer base for Novasol in these new territories, but will also implement a digital marketing strategy for Novasol, which will include our appointment as distributors of a few targeted product lines. You have been added to our web page’s mailing list for communiques on special deals we or our suppliers may be offering and general news relating to our activities. I do not intend to bombard you with unwanted mail, so you will of course be able to un-subscribe from these bulletins. Watch this space!!