With the discovery of oil in Ghana, the economic and business landscape of the country is changing beyond recognition. We talk to Mona Boyd, managing director of Avis Ghana, about how she is preparing her business for an explosion in demand.
The brand name Avis is known the world over for prestige car hire and fleet management services, and is synonymous with quality, reliability and, of course, security. Operating in over 165 countries around the globe, Avis is often seen as a lifeline for business people and diplomats venturing into unfamiliar territory.
The company to hold the Avis Ghana franchise began operating in1994 with just three cars and a vision of quality and business management that would quickly differentiate it from the rest. “Ghana at that time had just had its first successful democratic elections after a string of coups, and there was virtually no business infrastructure,” explains owner and managing director Mona Boyd. Most competitors were informal, simply operating from beneath a tree with no concept of managing and growing a business or operating with overheads. But from the very beginning, Boyd targeted quality. “Being American I went to the community I knew best, the American community. We put maps in our cars, dressed our drivers in black slacks, white shirts and shoes, and gave them written instructions and a full tank of petrol, which was unheard of in Ghana.”
Drivers received thorough customer services training, a process that quickly became formalised into a corporate training standard. Growth, however, was hampered by the stagnant economy and an absence of business infrastructure. By the time the company was awarded the coveted Avis franchise in 2001 it was operating with 15 cars, had established an enviable reputation in the marketplace, and its drivers were taking clients to most West African countries including Togo, Benin, Côte d’Ivoire, Burkina Faso, Mali and Senegal. “For many of our customers, it was often quicker and safer to rent a vehicle from us and to be chauffeur-driven across West Africa rather than attempt to fly to their destination,” Boyd says.
It wasn’t until oil was discovered in Ghana two-and-a-half years ago that the business environment changed dramatically, with an influx of global businesses and clients. At that point, with 65 cars and operating a combination of rent-a-car and car leasing services, Boyd recognised the risks to the business as well as the enormous opportunities, and she moved rapidly to respond to the change. Significant investment along with new expertise would be required if the company was to take advantage of growth, and maintain its leading position.
Over the subsequent 18 months she forged a joint venture partnership with Avis South Africa to form a new company, Avis Fleet Services, Ghana. Twenty per cent owned and financed by Avis Ghana and 80 per cent by Avis SA, the new company went into business in March this year, bringing in expertise and technology from South Africa. “Now, all fleet management and leasing contracts are managed by Avis Fleet Services, Ghana,” she continues. “If a customer requires 50 vehicles on lease, for example, the new company can buy those vehicles and provide that service. And this has liberated our vehicles to supply the increasing demand for rent-a-car services.”
The rent-a-car service continues to be chauffeur driven, and is now supplemented by a well utilised point-to-point service. Moreover, with the Ghanaian roads improving in quality, the company is planning to introduce a self-drive car hire facility in the future. Customer service is high on the corporate agenda, and all customers are surveyed as a matter of routine, with Avis Ghana seeking feedback on performance and looking for ways to improve its offering. Meanwhile, staff and systems are being put in place to establish long-term customer relationships.
From a sales and marketing perspective, Avis Ghana and Avis Fleet Services, Ghana work very closely together, providing a seamless Avis service from a single contact point to all corporate, government and private customers.
The Ghanaian business environment has certainly been challenging, and one of the most serious issues is the paucity of business and management skills. To fill this gap, the company has been continuously investing in training, sending staff on MBA courses, and paying for degree and postgraduate courses. At the ground level, the company’s 60 drivers are given customer care training four times a year to maintain high standards of professionalism. This investment in skills has been so successful that it has presented the company with one of its greatest challenges: how to retain valuable staff.
“Our problem is that companies coming into Ghana meet our staff and immediately want to hire them. So we not only spend a lot of time creating a highly professional organisation but we’re also working to create a family-like environment for them to work in. I do a lot of activities to promote friendships among my staff, and if we can’t compete with the high salaries offered elsewhere, we supply other perks. For example, we’ve set up a scheme for staff to buy shares in the company, and we also reward exceptional work with shares.”
The company has kept ahead of the competition by utilising the latest technology. Two years ago it implemented an in-house reservation and fleet management system providing an online booking service and secure payment by credit card. This links into the Avis World System, giving customers seamless worldwide access with the distinctive Avis branding.
Expansion and service development is continuing on all fronts. Avis Ghana is setting up a hospitality suite and offices at Kotoka International Airport, the point of entry for many corporate clients. When this opens in June this year it will complement the two existing outlets in hotels in the capital, Accra. Preparations are also underway to open an office in the oil industry centre of Takoradi a month later, in July. Further into the future the plan is to expand into the cities of Kumasi, and Aflao, on the border with Togo.
Boyd believes that the changes that have taken place so far in Ghana are just a sign of things to come. “The oil industry has already had a big impact.We are providing transportation services for four major companies in the oil industry, and we’ve been working with an increasing number of global services companies flooding into Ghana: Google, IBM, Morgan Stanley...the list goes on. But I think the future impact is going to be much bigger,” she says. “So we don’t have time to wait for that to happen, we need to be ready before it does.”
Over the next 18 months the plan is to increase the rent-a-car fleet to about 100 vehicles. “I have a big vision for this company. In the next five to seven years I want to increase our fleet to 500 vehicles deployed across the country, and expand our footprint into all the major cities, as well as mining areas and locations where industry arises,” she concludes. This will all require significant investment: “Once our current expansion initiatives are completed I will be turning my attention to the possibilities.”
Written by Gay Sutton; research by Robert Hodgson
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