Summary
The Bakhresa Group, a diversified conglomerate with an annual turnover exceeding USD 300 million, operates across several SADC Member States. The company faces significant operational hurdles, including inadequate energy and transport infrastructure, non-harmonised taxation, and excessive regulatory bureaucracy. These barriers increase the cost of doing business, reduce returns on investment, and limit capital for reinvestment. To mitigate these issues, the group engages in direct relationship-building with government agencies and lobbies through business councils, while advocating for regional infrastructure investment and streamlined trade facilitation.
Key insights
- The Bakhresa Group operates a diverse portfolio of 19 companies across eight sectors, including petroleum, telecommunications, and grain milling, with an annual turnover exceeding USD 300 million and a workforce of over 2000 employees.
- Infrastructure deficiencies significantly increase business costs, specifically regarding power-intensive operations in Tanzania and other countries where electricity is costly. Transport is hindered by poor rail networks and degraded roads in Zambia, while the Tanzania Port suffers from congestion and a lack of bulk cargo berths, leading to demurrage charges.
- Regulatory bureaucracy and a lack of harmonisation create inefficiencies; for instance, importing grain requires dealing with 9 different agencies, and exporting dairy products from Tanzania requires at least 4 different approvals.
- Financial and fiscal barriers include the absence of double taxation agreements between Tanzania and several SADC countries, as well as acute foreign currency shortages and exchange rate disparities in Malawi.
- The Bakhresa Group employs several mitigation strategies, including establishing direct relationships with the Tanzania Revenue Authority and port authorities in Mozambique, and lobbying via the Confederation of Tanzania Industries and the East African Business Council.
Cite the original document
- APA
- South African Institute of International Affairs (2012). Bakhresa Group. https://saiia.org.za/saiia-toolkit/bakhresa-group/
- Chicago
- South African Institute of International Affairs. Bakhresa Group. 2012. https://saiia.org.za/saiia-toolkit/bakhresa-group/.
- Wikipedia
- {{cite report |author=South African Institute of International Affairs |title=Bakhresa Group |date=25 July 2012 |url=https://saiia.org.za/saiia-toolkit/bakhresa-group/ |access-date=17 August 2026 |via=Climate Insights Directory}}
- BibTeX
- @techreport{southafricaninstituteofinternationalaffairs2012bakhresa, author = {{South African Institute of International Affairs}}, title = {{Bakhresa Group}}, institution = {South African Institute of International Affairs}, year = {2012}, month = jul, url = {https://saiia.org.za/saiia-toolkit/bakhresa-group/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }
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