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South African ICT distributor market faces serious threat

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Syntech co-founder and director Ryan Martyn highlights some of the biggest challenges ICT distributors face in South Africa.

Syntech says one of the biggest challenges in South Africa’s ICT distribution sector is compliance with regulations and import duties, which add to the costs and times associated with releasing new products.

“It has made it difficult to achieve quick turnaround times on new products or to provide consistent supply,” said Martyn. “Buying decisions are now largely driven by price and availability. Whoever has stock and the cheapest price wins the business,” he said. “We work very closely with our key reseller partners to deliver solutions that we believe carry the most value for those markets,” he added.

“Mustek manages its margins by adjusting selling prices in line with exchange rate fluctuations, and thus, the net realisable value of the stock would increase if the rand weakens in comparison to the rate at the time the stock was brought in,” said Coetzee.Hedging is when a company commits to buy or sell a product at a set quantity at a set price, also known as a future or forward contract.

 

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