On the sidelines of the One Africa Business Summit held on 14 and 15 June 2023 in Cairo, Egypt, Martin Hendriksen gave an interview to the AFRIK21 Editorial Team. The CEO of IAMaga, the NEXUS Automotive International group’s regional structure for Africa, talks about the importance of services, innovation and sustainability in the development of IAMAGA and the automotive sector in Africa.
Afrik21: Why did the NEXUS Automotive International group created IAMAGA in 2019?
Martin HENDRIKSEN : We created IAMaga to meet the needs of the African markets and their specificities, and to be as close as possible to the communities on the continent. The platform will deploy the traditional NEXUS toolbox, i.e. everything that is currently available to suppliers and the community, but we are also developing innovative services to adapt to the needs of the community on the African continent.
What was the aim of the One Africa Business Summit held in Cairo, Egypt, on 14 and 15 June 2023?
Martin HENDRIKSEN: We organized this first One Africa Business Summit in Cairo to bring together our partners and the entire supplier community in one place. It was very important for us to bring the community together face-to-face, because the aim is to federate and exchange ideas in order to identify the most innovative services that IAMaga can provide on the African continent. At the Summit, for example, we identified the need to lobby governments and institutions on African Automotive Aftermarket issues. IAMaga will be working to meet this need, which we identified together during the discussions.
Could you describe the main obstacles you face on the continent?
Martin HENDRIKSEN: Counterfeiting, trade barriers and lack of training are major obstacles to market development in Africa. IAMaga’s objective is to propose concrete solutions for our community. For example, to solve the problem of counterfeiting, we are going to propose an ultra-innovative labelling authentication technology that was presented at the Summit. Thanks to this technology, our members and the entire chain, right up to the consumer, will be able to verify the authenticity of components. What’s more, since there’s a digital connection, it will enable us to develop a whole menu of additional services. We’ll be able to offer a supplier loyalty program because we’ll be connected to the garage or mechanic who installs the part. You can deploy fitting instructions, have a support service, have training, in short provide a guarantee.
We took part in a workshop you organised on sustainability. What is your vision in this area?
Martin HENDRIKSEN: : It’s an important issue at Nexus level. In March 2023, NEXUS launched its first Climate Day, which was held in Canada, precisely to promote an eco-responsible aftermarket. This has enabled us to create a model of sustainability for the market, which includes more sustainable garages, training, reducing the carbon footprint, more sustainable packaging and products, and finally the circular economy. Our role is to bring the subject to our community and share best practices. If we take the example of Motus, which is a member of Nexus in South Africa, it is probably the most advanced group of all on the subject of sustainability. Firstly, because it is a listed company, because of its size and its multiple continents of distributors. And then, at the other end of the scale, there are the members who have not yet integrated sustainability into their strategy. But they are gradually integrating it and sharing best practice.
In some sectors, such as mobile telephony, Africa is experiencing a “leapfrog” phenomenon, which consists of skipping stages in development. We’ve seen this with telephony, for example. Is such a leapfrog conceivable on the secondary market?
Martin HENDRIKSEN: Yes, it is possible to leapfrog certain stages that would take place in a more developed market, where people go through small stages, and we will be taking a big step in Africa. This is one of the specific features that we are taking into account in the development of IAMaga. For example, if you have a digital labelling system, you can have start-ups with a digital connection to the place where the product is fitted. As a result, you can set up an efficient communication mechanism.
Africa is a fast-moving and highly innovative continent, and it’s in this spirit that we want to develop IAMaga’s services
Interview by Delphine Chêne, Interview by Delphine Chêne, on assignment in Cairo