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| Features |
| ZAGAF: Hard work pays off |
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by
Frank Phiri , 30 April 2006
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06:52:54
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Driving in the major cities of Blantyre, Lilongwe and border towns of Mwanza and Karonga, chances are very high that you will come across trucks bearing the name Zagaf. These long-haul trucks are a common sight along the Magalasi-Chirimba road in Blantyre. Yet for Aslam Gaffar, the man behind this transport empire, the journey begun with two dilapidated lorries inherited from his father. Frank Phiri caught up with Gaffar—better known as Zagaf—to learn about the secret behind his success.
Who is Aslam Gaffar?
I am a first born son of Zubeda and Abdul Gaffar. I was born at Lirangwe in Blantyre on June 18, 1962. I come from Chikuli Village in Traditional Authority (T/A) Chikumbu, Mulanje. I am married to Monira and we have four children. The name Zagaf derives from my mother Zubeda and me. Zagaf Transport is, therefore, myself and my mother, but I can safely say it’s a family business. I am a Muslim and pray at Machinjiri Mosque. I was born in a family of five children—myself, Rashid, Shamim, Firoza and Nafisa. Shamim is a chartered accountant living in Germany while Firoza is married to Mr Ali. Nafisa is studying in London. Rashid is in government.
Where did you go to school?
I went to Hezeldin near Chichiri and then Bishop Mackenzie Primary Schools. I then went to Dharrap where I really got disappointed for not being selected to a government secondary school. There was a perception during that era that a person with a name like mine could not be selected to a government secondary school. From Dharrap, I went to Central High School where I represented the school in the National Quiz competition. I did exceptionally well at GCSE O Level given that I scored credits in eight subjects. I left High School in 1975.
How did you find yourself in this business?
Initially, my father, Aslam, was a brick-layer and transporter. He used to burn bricks and deliver them to buyers. When he died in 1983, he left behind a small business that included two seven-tonne lorries—a Hinno and Toyota. From a very young age, my father had inculcated in me a hard-working spirit, and by the age of 15, I could repair any truck. Being a hard-working and ambitious young man, I was keen to take the business to another level. I was also lucky in the sense that my taking over the business coincided with the war in Mozambique. Suddenly, there was a boom in the transportation sector created by the destruction to the Nacala railway line. Other than Mozambique, the moving of agricultural inputs and produce and cement, boosted our business. Chipiku Stores were also very reliable. Up to now, I’m deeply indebted to Admarc and Portland Cement. It’s unfortunate that Chipiku closed while Admarc has down-sized operations. In those days, Chipiku Stores was a pillar for transporters.
Describe your daily work routine.
I wake up at 6:00 A.M, exercise for 25 minutes, take a shower and have a light breakfast of tea and toast. I then drive to the workshop [situated in Chirimba Heavy Industrial area], where I check which trucks have come back and which ones are ready to go. I then inspect books to see if my management is doing the right things. I knock off very late since I am also personally involved in repairing and rebuilding my engines. But these days, I have trained a number of young mechanics while I specialise in gear box and air systems.
How big are your operations in terms of fleet size and recruitment?
Zagaf Transport now has 130 trucks—70 are road tankers and 60 are for dry cargo. My young brother Rashid ‘Rashy’ Gaffar [Deputy Minister of Transport and Public Works] has 50 trucks, but I run them for him. When buying trucks, we do not go for credit and we prefer to deal with the dealers directly. We do not like credit exposure because it has many risks. We usually enter into interest-free agreements with dealers. These agreements usually run for four-months during which period we get deliveries and source all the money required. Zagaf has diversified into other things other than road transport. So in total we now employ 512 people.
Most commentators say doing business in Malawi is like climbing to the top of Mulanje Mountain—interest and inflation rates are high—and in your sector the cost of fuel and spare parts is ever increasing. How do you cope?
Yes. Things are becoming tougher by the day and this has prompted me to start diversifying from transport. In this regard, I opened up a tyre-unit, Tyre Leaders, a cement branch in Mzuzu called Zagaf Cement Sales and Mpatamanga Cattle Ranch. In all this, I see transport still playing a key role, but which should broaden the risk rather than clinging to transport business only. I am also researching into other viable sectors, and I see a lot of potential in manufacturing. The reason for diversifying is that I do not expect enough demand for road trucking by 2008.
By diversifying, are you implying that Zagaf Transport too is scared of stiff competition?
Not in the sense. By diversifying, we’re only trying to read the market. With talk of Zambezi-Shire Canal, repairs to Beira Railway and Mozambican transporters investing heavily to improve their capacity, there might not be much demand in road haulage from Malawi.
What are the key challenges in this business?
Our biggest dilemma is how to keep running costs low. Our costs in Malawi are high because of the inherent tough economic environment. The direct impact is that our charges tend to be higher as compared to foreigners who charge lower. Some of the problems could be solved if government started to listen to our pleas. For a long time, we have not received a desired response from government on various constraints we face as an industry. We’ve been losing a lot of business to foreigners because government is not keen to change certain unfavourable policies, that make our charges expensive. They [government] should open up and we need to talk. At micro level, I would say indiscipline by drivers and the toll that the HIV/AIDS pandemic is taking on them is heavy.
What is the secret to Zagaf Transport’s survival?
Hard-work, good planning, luck and the grace of God.
What is the happiest moment of your life and what is the saddest?
I am most happy when I am at my farm and on the road—I love travelling and my trucks. My father’s death made me and everyone in the family very sad. We’ve re-registered his transport company A.G Transport, to honour his memory and achievements.
FACT FILE
Managing Director: Zagaf Transport
Founder: Zagaf Cement Sales
Mpatamanga Cattle Ranch
Tyre Leaders
Part-Manager (Environmental Affairs): International Haulage Brokers (IHB).
Other business involvement:
Vice President, Road Transport Operators Association of Malawi (RTOA).
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