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Business Editor
Antonio Fourie’s capabilities as chief executive to one of the country’s iconic companies – Innscor Africa – have been put under the spotlight following the recent resignation of long serving chairman David Morgan.
Although Mr Morgan’s departure is due to retirement, well placed sources said the current restructuring, which is being spearheaded by majority shareholder Mr Zed Koudonaris, ignited the decision as he had served for a couple more years regardless of the retirement need.
Mr Fourie who had been a consultant at the group for a year, announced his new position at an analysts briefing last month. However, his appointment has not been well received in the market with the majority questioning why the company’s majority shareholder has resorted to importing skills when Zimbabwe boasts of a rich skills base.
Mr Fourie is not yet resident in Zimbabwe. He told the briefing that he had not yet obtained a work permit but would fly out to Zimbabwe for three days each week.
Analysts say Innscor was sending out the wrong message by employing a commuting South African to be in charge of the third largest company in Zimbabwe. Mr Fourie took over from Mr John Koumedis. Just last week Old Mutual plc chief executive Mr Julian Roberts highlighted the country’s importance to the group mainly because it possesses a high skills base.
Mr Fourie is not the only South African brought in to boost operations; two more were brought in to head some of the new strategic business clusters.
“Innscor has put into question the credibility of Zimbabwe executives. Foreign-owned companies like Old Mutual and Delta always looked for local replacements. SABMiller had no shortage of local candidates before Pearson Gowero took over from Joe Mtizwa. That Innscor appointment sends out the wrong message,” said market analyst Jerome Negonde.
Economist and businessman Mr Joseph Sagwati said Zimbabwe is vaunted as highly educated and with a multiplicity of highly numerate personnel.
“There is no reason in the world that we are found wanting in any corporation to then parachute failed executives from South Africa and land them local opportunities. This is stretching the spirit of tolerance too far. We have local talent here in Zimbabwe. Why are they giving the post to the failed former Ellerines chief executive?”
However, Innscor said it was repositioning its business, with the objective of getting 50 percent of its topline from the regional operations as part of its three to five-year strategic plan.
“It could be that Innscor shareholders wanted someone who has an African focus but then again, is a South African the best choice considering that it does not have operations in that country? They need someone who understands the business environment of this country,” said an analyst with a local brokerage firm.
Analysts also questioned Mr Fourie’s track record as he struggled to turnaround furniture company Ellerines in South Africa. Ellerines is largely blamed for taking down African Bank Investments Limited. Mr Fourie, however, said he had great experience particularly in turnarounds, giving analysts a short history of his successes.
Ellerines went into bankruptcy in August after almost 60 years in business when Abil withdrew funding following losses of at least R70m/month since 2013.
Administrators have since been trying to save the operations, which provided jobs for 8 000 people across 940 stores. With 650 stores trading under the names of Ellerines, Town Talk, Furncity and Savells Fairdeal, these combined brands have made an indelible footprint in communities throughout South Africa and the neighbouring countries of Botswana, Lesotho, Nambia, Swaziland and Zambia.
According to Business Day (a South African newspaper) his resignation came as no surprise judging from the performance. Concerned market watchers from South Africa said Mr Fourie had kept his promise of transforming not just the company but the industry but only in the opposite direction.
“He stuffed up the furniture retail industry in South Africa. So yes he kept his transformation promise and brought down a bank as a bonus,” said the market watchers.
Innscor is trading on the Zimbabwe Stock Exchange with an 18,8 percent year to date loss at 65c much closer to a year low of 59,5c. It has been on a downward trend after it released its June finals which showed declining profitability; signs of a business in maturity.
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