Soraya Narfeldt, 48, is the founder and CEO of RA International, a leading African facilities management service provider. Narfeldt is a businesswoman who thrives in Africa’s most challenging and remote areas. From running a remote mining camp, to delivering expensive communications equipment to war-torn areas, she has built an extremely successful business working in Africa’s extreme locations.
She recently chatted with me about RA International’s journey so far and its expansion plans in Africa.
Break it down for me; what does RA International do?
At our core we provide construction, logistics, life support and maintenance services for those operating in remote and demanding environments. We focus on serving those involved in humanitarian operations, and the oil & gas and mining industries. NGOs, Governments, and private enterprises are among our customers These include the United Nations, World Bank, The African Union, several European and North American Governments, and a number of publicly listed companies.
What are the most challenging projects you have worked on in Africa?
In South Sudan, we had a major responsibility to build administrative buildings on behalf of the UN. Our role was to travel to the northern border, with over 50 people and a huge amount of extremely heavy equipment. The location was dangerous because it sat right in between two warring factions.
After being ambushed and after two of our employees fled for their safety, we had to spend two weeks negotiating to get our employees back. These outcomes are far from ideal but in a difficult conflict zone, which is why it is so important for us to build clear lines of communication with local communities and community leaders – gaining trust and confidence from all parties is crucial.
Our project in Chad was geographically challenging because we had to deal with extreme heat and a very real risk if being caught in flash floods. The Chad project required huge amounts of equipment in remote and unpredictable conditions – challenges exacerbated by the fact that help was many hours away if we ran in to difficulties. Being well-equipped and prepared for such extreme conditions meant that he project was successful.
Projects like these always push the team to rise above challenges and think creatively about how to get where we need to be – but no matter how challenging the circumstances or how remote the location, we have always delivered, regardless.
Talk us through RA International’s expansion into new markets in Africa and beyond.
RA International has regional offices across Africa. We have grown into a multifaceted firm, employing over 1600 people from 33 different countries. This experience across multiple cultures has led to a deep understanding of people from all sorts of backgrounds and we believe that this is what has allowed our organization to flourish.
We have a presence in more than 10 African countries and are proactively expanding our customer base by pursuing opportunities outside of the conflict and humanitarian environments. These include the mining sector in Africa. This by default also takes us into countries such as Mozambique, Malawi, Ghana and others.
In addition, we have branched out within the humanitarian sector and added customers such as the US State Department, European governments and large blue-chip companies to our customer base. This has broadened our geographical footprint in to countries such as Ethiopia. We are also exploring opportunities in the mining industry in Mongolia and are working with existing clients and customers on new projects in Vietnam and Latin America.
Your company also provides services to humanitarian operations. Talk us through some of your initiatives.
We operate in accordance with the UN Global Compact – so everything we do is in line with those objectives. All of our employees and all our business partners respect the Universal Declaration of Human Rights.
We also make sure that our suppliers adhere to our own social and environmental standards. We use a variety of tools to assess suppliers, including background checks, self-assessment surveys, site visits and audits. We do not work with suppliers who do not meet the standards we have set for ourselves.
When the international community intervenes to stabilize a nation, politically and economically through reconstruction efforts, we’re there to help. We have over a decade of experience working with Governments, NGOs, and supranational organizations in conflict and post-conflict regions. We are specialists in completing projects in demanding environments with humanitarian challenges – and we are driven by the need to help others. Very often, we invest locally to provide the local community with the tools that they need to build upon our work so that they are left with a sustainable business for the future. For example, if we need stones to be broken for a job, instead of expecting someone to break them manually, we might buy a jackhammer, give it to him to own, and request a reduced rate on the stones that we buy. The modern equipment that we leave behind then helps that supplier to grow his business.
How do you attract investors and capital when operating in a very risky markets in Africa?
Transparency, good governance and anti-corruption policies are useful in gaining trust from investors. Well-managed P&L accounts and records of contracts with clients and suppliers also contribute to gaining confidence.
At RA International, we support the UN Global Compact 10th Principle, which requires us and our suppliers to not only avoid corruption, but also to develop policies and concrete programs to address it. This is an important commitment and one that investors obviously look for when looking at Africa.
Investors should of course carry out their own exhaustive due diligence: on the organization, they are looking to invest in, the political climate in the country, taxation, repatriation of capital and the economic performance of the country itself: interest and inflation rates, foreign currencies held, GDP performance, bi-lateral and multi-lateral trade deals, WTO forecasts and bank capitalisation for banks in the country.
Our business relationships are built on honesty, fairness and trust and we operate a zero-tolerance policy for corruption, bribery and extortion, which is clearly laid out in our Code of Conduct and Company Policies.
Our books and accounts are externally audited, annually, by E&Y. This is a crucial way of identifying any payments which could be related to bribery or corrupt behavior. We are proud that RA International has never had such an incident reported.
Tips for SMEs to meet their financial goals?
Cash is king. So, protecting cash flow at all times is without doubt the single most important financial responsibility. SME’s must ensure that when they sign contracts with new clients and customers, terms of business include very clear payment terms: mode of payment (online bank transfer is always preferable), specific dates when the payment should be received as cleared funds, and if possible, a clause that stipulates that the supply of goods and / or services may be interrupted if payment is not cleared within the agreed timeframe. Your terms of business and payment terms should also clearly specify who pays for bank transfer fees.
It is of course a zero-sum game for you to pay your own suppliers late – so always pay them on time: this is as much about respect for those you partner with as it is about sound management. But, you must ensure that you get paid on time so that you have the cashflow required to pay your suppliers.
If you have a client or customer that always pays late, crack down on them and make it clear that it is simply unacceptable. You deliver your product on time and to the highest standards – they simply have to commit to paying you on time.
Technology can help you manage cashflow – easy to use web applications can help you by reminding you with email alerts and calendar reminders when payments are due. Make sure that the person who is responsible for chasing payments is on the ball and is able and willing to use software to get the job done. Most programs offer e-invoicing too, which makes accounting much easier.
Focus on the money going out more than the money coming in. Start-ups often get excited about monies coming in rather than cash that is leaving. So, ensure that ingoing’s and outgoings are very clearly laid out on a spreadsheet, with precise dates.
Finally – never pay late and never pay early. Pay on time. Cash is always King.
Lastly, what is your advice for companies looking to expand into Africa
Our success is built upon honesty, respect, accountability and sustainability. Any company that wants to operate in an African country has to begin with respect – respect for cultures, traditions, languages and business norms. Foreign templates rarely work, so it’s a great idea to partner with a local business, associate or partner.
Foreign firms also need to take seriously the issue of legacy – we all have a duty to leave a positive legacy when we finally depart: that means helping to train local employees so that they have the skills needed to run things after we leave. It also means making sure that we take care of the natural environment and the communities where we work.
Companies also need to be whiter than white when it comes to how they run their businesses. Anti-corruption policies are really important, and that includes anti-bribery. It is also really important to have a backup plan. Plan A has never worked for any project that we’ve undertaken or invested in. I always look at plan M, N, O, P or Q.
The second lesson is to invest in people that work for you. You might have 10 bad staff members, but the one good guy will make up for the 10 bad ones. By investing in people, you ensure that they hold you close to their heart and that they want to deliver good work for you. And it makes them want to stay with us. They are our security and protection, because it is their country we are working in, not ours.
We also invest in our local suppliers and teach them the standards that we need. We don’t shout and yell at a person because something is not packed properly, for instance. He doesn’t know how we need it packed. So, we must give him the box, the tape and the measuring tools, and show him the way we want it packed. If we need stones to be broken for a job, instead of expecting someone to break them manually, I would rather buy a jackhammer, give it to him to own, and request a reduced rate on the stones that I buy. The modern equipment then helps that supplier to grow his business.