[Photo: Despite teething problems, Mr Dhanuka, who runs telecommunication company Delta Network, has no regrets about expanding his business into Africa.]
By Fiona Chan
HE WAS attacked with a sledgehammer while driving from the Lagos airport to Victoria Island in Nigeria, and his colleague was detained in the Ivory Coast immigration office for 36 hours and made to give up his money.
But Mr Vikash Dhanuka, 35, who runs Singapore-based telecommunication company Delta Network, has no regrets about expanding his business into Africa.
Since he made his first business trip to Nigeria in 2003, Delta has set up five offices in the continent, from which it runs its operations in 18 African countries, including more exotic locations such as Uganda, Sudan and Madagascar.
Revenue from Africa makes up 60 per cent to 65 per cent of the company's annual turnover, which hit $200 million last year, Mr Dhanuka said. In the continent's CDMA market, Delta has a 35 per cent to 40 per cent market share.
This is impressive considering that Delta went in alone, with no help from any international organisations such as the World Bank.
Despite initial problems getting financing and manpower, as well as bad experiences with disappearing clients, Delta managed to succeed in Africa due to 'networking', said Mr Dhanuka, an Indian-born permanent resident.
'In Africa, references and contacts are everything.'
These 'difficult markets' present great opportunities to get a first-mover advantage, he added.
'We want to be in these markets where we believe the competition is low, because the big boys would possibly be looking at these countries as their last priority,' he said.
'Once we're the first ones in there, it's a matter of expanding our portfolio. In Nigeria today, we have more than we can chew - we are in defence, railways, oil and gas - because now we understand how to do business there.'
To Mr Dhanuka, Singapore companies going into Africa now 'are already late'.
His advice: 'Pick a country, get your product and go there first. Start with one country you feel is right for you in terms of your business model, and then look at moving forward from there.'
