Specialised call centre solutions provider Teleforge Communications has grown its revenue 90% during the last three months, due to the weakening of the rand – which has been flirting with an exchange rate of R18 to the dollar.
According to Andrew van Niekerk, MD of Teleforge, the company is able to buck the current moribund business trend in South Africa.
“If the economy weakens we gain as 60% of our customers are debt collectors – they prosper. If the rand strengthens we gain as the other 40% are sales, investment and security companies.
“Ten percent of our customers are now international and pay in dollars which means for the same dollar amount we now make 30% more than we did three months ago. This gives us an edge,” he says.
Van Niekerk explains that Teleforge develops all its software locally, so costs have remained whereas competitors that import their software have seen costs rise by up to 30%.
Teleforge is now in a position to outbid competitors – even at a rate of 30%, or more. This is because it has a market edge of 30% in terms of earnings.
Additionally, the company only operates on a prepaid basis which means the business has almost no risk.
In the last two years the company has notched up a 1000% growth in total revenue.
Van Niekerk adds that revenue from overseas ventures will deliver a 50% “kick” to overall revenues in the next 12 months. The company has clients in Swaziland, Kenya, Spain, Lesotho, Namibia, Dubai and Botswana.