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Q & A With Anda Maqanda: His AM Group Has Got The Power In South Africa’s Energy Sector

Q & A With Anda Maqanda: His AM Group Has Got The Power In South Africa’s Energy Sector

As South Africa gears up to undertake a major overhaul of its strained energy sector, you can be sure Anda Maqanda will be in the forefront.

Entrepreneur Maqanda is owner of the AM Group, an engineering company that offers engineering consulting, design and construction of electrical overhead power lines, renewable energy and automation.

Based in Port Elizabeth, AM Group employs more than 50 workers. Maqanda, 30, launched the company in 2010. A certified electrical engineer with a master’s degree, he said he always wanted to be his own boss and over his father’s objection, he left a full-time job to go into business for himself. His father wasn’t too impressed and in fact said Maqanda became an entrepreneur because he was too lazy to work.

Maqanda’s first business in 2008 failed and he returned to employment but the entrepreneurial itch still needed to be scratched.

So he recouped and opened AM Group two years later. This time he found success. He went on to become the winner of the South African Breweries (SAB) youth entrepreneurship program, SAB KickStart.

It took six months to get his first contract, but when he did, it was from the City of Cape Town. Today, his clients also include Eskom, South Africa’s public electricity utility, De Beers (for which AM Group provided mining and extraction services) Metrorail, Heineken, and the Swaziland Electricity Company, among others.

Maqanda spoke to AFKInsider about his business.

AFKInsider:  Why did you start AM Group?

Anda Maqanda: When I started AM Group, I saw an opportunity and a need for excellent reliable power infrastructure here in South Africa.

AFKInsider: How did you fund the business?

Anda Maqanda: I funded the business using my own money. I used my pension and savings that I had saved from my previous employment.

AFKInsider: How do you stand out from your competition?

Anda Maqanda: AM Group is very client oriented. We don’t just work for our clients, we work with them. We work closely with our clients, we position ourselves as partners rather than just a mere service provider. All services or solutions that we provide are as per client specification.

AFKInsider: What have been some of the business challenges you have faced in the South African energy sector?

Anda Maqanda: The market is fast becoming saturated, and also the profit margins are fast decreasing every year. This makes us work extra hard to land contracts, build our reputation, and look for other revenue streams.

AFKInsider: Is it easy to do business in South Africa?

Anda Maqanda:  It is not very easy at all because most of my potential clients prefer bigger companies rather than small-medium enterprises and we are a SME.

AFKInsider: What are your goals?

Anda Maqanda: My goals for year 2015 are to increase or double our turnover while creating additional employment opportunities. My long-term goals is to publicly list the company at JSE Limited (the largest stock exchange in Africa)–and I know we can get there.

AFKInsider: What do you like the most about what you do?

Anda Maqanda: The responsibility that I have for my 56 employees, they look up to me for support, to provide for their families, and every day I wake up knowing that I have a responsibility not only to my own family but also to my employees’ families.

AFKInsider: What has been the most important business lesson you have learned?

Anda Maqanda:  Never to bite off more than you can chew. It’s better to turn away business than to take on business you can’t complete. Also, I have learned it is always  important to take well-calculated risks and to always have a thick skin for criticism, because as you get more successful you will be under more scrutiny.