FM Logistics takes on the regional market
FM Logistics, a local company operating in the cutthroat logistics and distribution sectors aims to be the ‘ go to’ business for all things logistics. However, as Director, TATENDA SHERENI tells Botswana Guardian, the competition is high and key to a succ
Kindly provide background on the formation of FM Logistics.
SHERENI: First Motives, trading as FM logistics was established at the end of 2017 with the intention of being a fuel distribution company. However, the company now offers transportation to almost all goods traded within the southern African region. In fact, our plan is to become one of the foremost logistics companies in the SADC region in the medium term.
GUARDIAN: Why did you choose to start a business within the logistics sector?
SHERENI: We noticed how the major logistics companies catered to the multinational companies, leaving an opportunity with a lot of the local
companies which at the time were increasing the amount of international trade.
GUARDIAN: How receptive has been the clients to the group?
SHERENI: We have been well received among the local companies as they also believe in working with other like minded local companies like ours. It is worthwhile to note that the logistics business is challenging just like any sector.
So far, the South African market has proved to be slightly more challenging as they tend to have their preferred transporters. This has not stopped us from penetrating the market and taking some of the market share of goods which come to Botswana. We are hopeful that we will get more business in future as the business landscape opens up post COVID- 19.
G UA R D I A N : What specific services is FM Logistics offering?
SHERENI: FM Logistics transports industrial, agricultural and consumer goods. We have also ventured into the transportation of diesel and petroleum.
GUARDIAN: Who funded FM Logistics?
SHERENI: FM Logistics was funded by own capital as well as covering deficits through the assistance of close friends and family. I must hasten to state that, start- ups always experience the same problem of limited access to funding. Nonetheless, FM Logistics will not be deterred by this.
GUARDIAN: How has the company managed to deal with tight competition
coming from both domestic and international players?
SHERENI: In the logistics space, the best way to be competitive is to ensure your service is top notch. This is how we have managed to compete, as we insure all goods are transported in a timely manner without any damage.
GUARDIAN: Who are your major clients?
SHERENI: Currently, we are servicing various local companies, notably Petrohyper as well as Build Ezee.
G UA R DIA N :
Botswana Guardian understands that the company plies its trade in Botswana, South Africa and Namibia. What challenges have you experienced dealing in three different markets, with different trade laws?
SHERENI: The greatest challenges we have faced are the different charges a truck faces when entering different territories. Beyond that, we have found the different countries to be more alike than they are different.
GUARDIAN: How many people work at FM Logistics?
SHERENI: We currently have a team of about 6 permanent workers, then we have seasonal or part time people who come in to assist as per need.
GUARDIAN: As a youthful entrepreneur, what message can you send to those aspiring to become entrepreneurs, especially in the sector you operate in?
SHERENI: I would encourage other youth to take the leap of faith. There is never going to be a perfect time, and with each passing day the opportunity which you may have noticed is also being noticed by someone out there. Challenges will come daily, but if you remain focused on your vision and tackle matters as they present themselves daily, you will one day look back and marvel at what you would have built up.
G UA R D I A N :
What does the future hold for the company?
SHERENI: We intend to keep growing regionally as we firmly believe there will be a lot more intercontinental trade in the near future. In the next 5 years, we intend on FM Logistics being the name you think of first when you want to transport anything.
GUARDIAN: FM Logistics recently took part in the Botswana Stock Exchange’s Tshipidi Mentorship Program. How important is it for the company to have been part of the program?
SHERENI: We attended the Tshipidi mentorship program with the curiosity of how the capital markets work in Botswana.
We have since been exposed to various new ideas of how we can structure our business in such a way that it will one day be listed on our local stock exchange. The program has been very beneficial in that it has shown us that we can scale our company up to the size of the multinational companies we grew up admiring.
We will remain in close contact with the exchange as we grow and continue to learn.