Navigating lubes market dynamics in different African countries

In this edition, we are graced by the presence of Naly Rado Rakotovao, the Regional Lubricants Manager for East & Central Africa for TotalEnergies. Naly has 24 years of experience in the lubricants industry, and he has worked in Madagascar, East and Central Africa. He takes us through his journey in the industry, talks about these different markets and TotalEnergies operations in Africa’s lubes industry.

Could you take us through your journey in the lubes industry from when you started to your current position?

24 years ago, I was working as a technical and sales manager in the automotive after-sales field. Then, a new exclusive distributor of CALTEX, Tecnolub, in Madagascar, was looking for Sales and Field Technical Support, and they allowed me to discover the lubricants industry in 2001.

After leaving Tecnolub, I was appointed a Technical Advisor and Lubricants Representative at SHELL Madagascar in April 2002, where I stayed until September 2002. In October 2002, I became the Lubricants Manager for TOTALFINAELF’s affiliate, now known as TotalEnergies in Madagascar.

At the same time, I was involved in projects related to LPG and bitumen activities. In 2016, TotalEnergies gave me the opportunity to be in charge of aviation (project, operation, and sales) in Madagascar. Then, in 2018, I was appointed the Regional Lubricants Coordinator for the Indian Ocean before moving to Kenya to become the Regional Lubricants Manager for East and Central Africa. I returned to Madagascar in August 2023, but still kept my position in charge of East, Central Africa and the Indian Ocean.

What are your responsibilities as the Regional Lubricants Manager for East & Central Africa?

I am in charge of developing the company’s lubricants activity in the region through 11 affiliates. I accompany them on the implementation and deployment of TotalEnergies’ strategies and road map in terms of marketing, sales, technical support, and supply chain related to the Lubricants activity. The goal is to meet the company’s ambitions in line with market needs and the evolution of the environment.

You have been in the lubricants market in Madagascar. What are some of the major lubricants market segments and industries in Madagascar?

Transportation is a major lubricant consuming sector in Madagascar, and it consists of road transportation which has trucks, buses, and other vehicles facilitating the movement of people and cargo. The railroad is also growing. Mining is another segment that consumes lubricants. This sector has large-scale mining operations that mine the large deposits of nickel, chromium, cobalt and ilmenite. Other minerals in Madagascar are gold, diamond, sapphire, graphite, uranium, and titanium. The energy sector is another significant lubricant consumer in Madagascar. Hydropower provides approximately the half of the country’s electricity. The rest is mainly produced from thermal sources diesel and HFO power plants which extensively use lubricants.

Looking at Madagascar, East and Central Africa, what are some of the similarities and differences in these regions?

The main similarity is the importance of the heavy-duty segment in the automotive market, and the difference is the route to market in that the route to market in Madagascar is more straightforward compared to that of the market in East Africa.

How would you rate the knowledge of the African market in terms of quality lubricants, and how does this affect the customer’s purchase decision?

It’s a big question as we are talking about more than 50 countries with different types of industries and demands. For example, in some countries, we deal with the latest product technology meeting decarbonization as EV range or Hybrid, while we can find a large selection of entry level products still in the same country, signifying there is still room for growth.

TotalEnergies has a very strong presence in Africa; what are some reasons you think have helped the company cement its position?

It has been 100 years now, and as a pioneer, TotalEnergies has invested its latest technologies in downstream activity in Africa. As of today, TotalEnergies is one of the few major oil companies directly involved in downstream operations in most African countries. Its attachment to customers and proximity to the market are very important.

The lubricants industry has been at the forefront of embracing sustainability. How is TotalEnergies driving sustainability in Africa’s lubes industry?

Sustainability is at the heart of TotalEnergies’ strategy. Over the years, the company has launched different programs and offers to reduce carbon emissions from its activities and for its customers. TotalEnergies has deployed renewable energy in all lubricant blending plants, lubricant containers made from post-consumer recycled materials, and services and products to reduce industrial energy consumption, and it also offers Fuel Eco lubricants. These are lubricants formulated with Fuel Economy (FE) technology to help improve fuel economy and thus reduce CO2 emissions and fuel consumption. TotalEnergies has been developing FE products since the 1990s in close cooperation with key OEMs.

TotalEnergies has blending plants in several African countries. Which factors can contribute to intra-African trade and lead to better utilization and optimization of these blending facilities, especially in countries that share a border, for example, Kenya and Tanzania?

Harmonizing the standards should do that. Some countries have updated or developed their standards, which can differ from one country to another. Therefore, the offered product range differs, requiring dedicated production. Harmonizing product standards will ensure these plants can be better utilized to manufacture lubricants for several countries.

The future of the lubricants industry is dependent upon competent and highly knowledgeable professionals. How does TotalEnergies ensure that the professionals handling its lubricants business are knowledgeable and can offer world-class lubrication solutions to African customers?

People are at the center of TotalEnergies’s strategy. The company has conceived several types of training and skill development programs for each person and each position, and they have an entire division in charge of that, called TotalEnergies Learning Solutions. There are also other programs with which all lubricant staff are regularly trained and share their best practices and experiences.

How does technical support for an industrial or mining customer influence their decision to select a lubricant supplier? In your view, what more must be done to enhance this kind of support in the region?

The solution’s reliability may influence customers’ decisions when they select a lubricant supplier. Popularizing the Total Cost of Ownership (TCO) approach may help enhance this kind of support in the region, and it’s better for the environment as it reduces the carbon footprint.