Wednesday, March 19, 2014

A man deeply committed to Africa (Source : “L’Eventail” Magazine).

Our guide to the extraordinary career of Philippe de Moerloose is Michaël Delvaux, a close friend from the start and a key figure in the structures of SDA and SDAI, who tells us about the small SME that has grown into a holding currently rivalling the big names in international distribution.

At the head of the holdings SDA and SDAI, in over 20 years, Philippe de Moerloose has developed a Group of companies with a presence in 27 countries and three main sectors of activity: the distribution of cars, the distribution of construction equipment, mining and forestry machinery and the distribution of agricultural tractors.

Focused chiefly on Africa, Philippe de Moerloose was able to seize the opportunities offered by the continent in order to transform them into an exceptional business. SDA encompasses companies active in the exclusive representation of automobiles and machinery in Africa.

More broadly, the consortium SDA/SDAI (2008/2012) offers a full range of high-quality products and solutions and above all, after sales service on a par with any European network. The investments in structures to meet the international needs of manufacturers and the recruitment of talented staff have been the keys to their success. But even more than his thorough knowledge of Africa gained over his two decades on the continent, it is Philippe de Moerloose 's capacity to pass on his knowledge that has made the consortium a true asset for its partners, clients and suppliers.

The start of an adventure

After spending his youth in Katanga, Philippe de Moerloose was sent to Belgium for his university studies. But it was with a certain apprehension that he landed in his country of origin, and he immediately missed Africa. A people-person and above all, culturally African, Philippe de Moerloose was determined to return to Zaire after having benefited from all that Belgium had to offer. After all, his heart was in Africa.

In 1991, at the age of 23, Philippe de Moerloose founded a cooperative company that he named Demimpex (an acronym for de Moerloose Import Export), specialising in services in the import-export of spare cars parts between Belgium and Zaire, Rwanda and Burundi. No market study, no business plan, but three reasons, each of which alone would be enough: to provide service to the people he had met during his summer jobs in the mines of Katanga, a consuming passion for cars, and the intuition that there would be a demand that could be filled by a serious, resourceful and hard-working entrepreneur, and through which could earn a living. Service, intuition, passion and hard work became the foundations for his success. And it is no accident that these elements are inseparable from Africa, where the custom of sharing generously with the community, the value of hard work and the uncertainty of what the next day may bring are characteristic aspects of the culture.

Between 1995 and 2010, the dream was realised with accelerating growth for the company thanks to numerous takeovers. These acquisitions helped to expand the activities, allowing collaboration with teams from highly diverse backgrounds, and to grow the group by gaining representation in Africa for many leading brands (such as Nissan, Mercedes, Volkswagen, Ford…) as well as for industrial equipment (such as John Deere, Hitachi, Volvo Construction Equipment and Volvo Trucks). More than just takeovers, Philippe de Moerloose was also acquiring know-how and thus gradually building an invaluable network; he would be able to use it to optimise sales and to expand the structure in order to offer his clients the service he believes they deserve: “the same kind of service that your average person receives in Europe.”

A growing success

Philippe de Moerloose quickly built up a clientele among mining companies, commercial companies, transport companies and African governments. On the basis of this success, he could have simply stopped there. But it wasn't in his nature: he can't abide failure, or waste, and sees the debacles and abandoned projects of others as opportunities and ideas that simply haven't been implemented properly. For a decade now, Philippe de Moerloose has specialised in overhauling and restoring to profitability companies that have got into trouble due to poor management or lack of persistence. “You can reach a goal when you have a clear one, and through hard work”, he exhorts his teams. In this way, Philippe de Moerloose was able to create his hotel and industrial activities by taking over assets that others did not have the dedication to make profitable.

A man of strong intuition, Philippe de Moerloose also added a new link to his group, given the constant demand and the results achieved: in fact, he created logistical platforms in Dubai and Antwerp as well as in China. These are all part of a commercial strategy to focus on the idea of services. Some are resigned to losing ground against the commercial power of China or the Middle East. For his part, Philippe de Moerloose is investing to learn and to turn a profit just like he did as a young student in Belgium.

Understanding his client's needs and meeting them remain his sole obsessions. With slim margins and fierce competition, the strength of the consortium is in the availability and the large stock of vehicles and machines. Thus, instead of delivery from the factory in 2 to 3 months, the company is able to deliver in 3 or 4 weeks. He has large warehouses that allow him to store 2500 vehicles and machines; the same applies for the spare parts. Currently the group has a workforce of nearly 3,000 employees around the world and has experienced growth of between 15 and 20 % annually over the past decade.

Humility in the face of a complex market

Whilst success can be disorienting for some, Philippe remains a discreet man with a low profile who doesn't enjoy flattery. He retains his outspoken taste for challenges, for surpassing himself and his profound commitment to the African continent. He is fluent in Swahili and more than ever he feels at home expressing himself in this language.

After all, Africa is a difficult continent in which to work if you are not African. It takes patience and you need to approach people with an understanding of their culture, without losing your own personality. Africa sometimes frightens away Western investors, particularly because the press generally refers only to the political instability, war or questionable business practices. “It's a very simplistic image transmitted by certain media", he notes. Africa is an extraordinary growth zone with many opportunities in all sectors, particularly in infrastructure, agriculture and services. It has a young population full of energy and talent who only need benevolent leadership and the means to express themselves. This is my credo and my profound conviction. That is why I am confident, and why I make these investments. The business world in Africa is changing for the better. And it's thanks to this that we are able to fully realise our goals. The successful companies are those who create value, not those who confiscate it.”

Never one to resist a challenge, but has Philippe de Moerloose achieved his goal? It matters little. This true businessman is always looking for more. Not simply for himself, but for his 3000 employees and his clients. With the help of experience, he has learned that the tide can shift and the market moves very rapidly. He has seen companies go under for good, or unable to recover. He has purchased some of them. Starting from scratch to become an established name in the market today, as a company that is successful, loyal and acknowledged by its clients, employees and suppliers was never a goal in and of itself; but it has become a point of pride. Today, the caption of industry has a nostalgia for the days when he discovered the mines during summer jobs and the period when, although he was the boss of the SME, above all, he was an outstanding salesman. Already at a young age, Philippe de Moerloose gained this talent which became the other invaluable secret of his group: his capacity to organise dedicated management committees, competent in their jobs, allowing each member, male or female, to develop the qualities of vision, strategy, and perseverance necessary for the group to emerge.

Few people are able to convey their qualities to their teams, but those who manage to do it no doubt reap more rewards than all the dividends in the world. At a time when financial holdings are under fire for their short-term vision, Philippe de Moerloose would like to prove, with the help of Africa, that it is still possible to reconcile financial goals on the medium-term with long-term industrial goals. He can scarcely believe it himself but in our opinion, he is an example of the entrepreneurial model of the future.

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