Talking business with security company boss Tony Sugden

In 2006 Tony Sugden, a retired Major in the British Army, co-founded Warrior Security.

In 2006 Tony Sugden, a retired Major in the British Army, co-founded Warrior Security, a security firm which operates primarily in post-conflict areas of Africa providing security management to corporate, government and humanitarian organisations. The firm currently runs operations in South Sudan, the Democratic Republic of Congo (DRC), Tanzania and Zambia and plans to enter Kenya this year. Sugden told How we made it in Africa’s Dinfin Mulupi more about his business. What inspired you to establish Warrior Security?

After 20 years in the British Army, and a further seven years as an employee in commercial security, it was perhaps inevitable that I would consider setting out on my own. However, it was also a realisation; despite the plethora of other security companies there was an opportunity for a company to tread a slightly different path. Security companies have traditionally set their course according to the muscle and stated security budget of the client, which hitherto has been set unrealistically low and as a result led to low wages, low morale, poor performance and poor profits among security companies. Our approach has been to create a model that essentially reshapes the client security aspirations and budget through quality and slavish adherence to the basics: selection, vetting, training and management enveloped by a proper living wage. Our approach has coincided with the influx of major companies coming in from the mining, oil and gas sectors who are inherently risk averse and who have an extremely strong corporate and social agenda.

Tell us about your experience doing business in the DRC and South Sudan, two countries that have endured decades of turmoil.

Whenever I mention that I operate in these countries, it usually elicits a collective groan but in reality the opposite is true. The DRC and South Sudan have endured many years of conflict and degradation – and in some areas continue to do so – but they are in this phase because they want to create a safe environment in which to mature. What better place for a security company whose sole aim is pitching in to create the conditions for a prosperous future. In South Sudan we were the first company to voluntarily pay personal income tax on behalf of all our employees. We provide employment to the local community such that our direct efforts contribute to the welfare of about 30,000 people.

I understand you are planning to enter the Kenyan market. What is driving this strategy given that the market is flooded with security firms?

It is true that there are far too many security companies in Kenya, and in other parts of Africa for that matter. A recent census indicated that there are over 1,000 in Nairobi alone, the vast majority of whom operate below all government mandated minimums, such as wages and use of equipment. The shame of it is that these companies are in fact contributing to insecurity because their wages merely encourage the guards to steal. We have never been in competition with this element, which operates essentially below the line. Nor were we prepared to compete with the relatively few security companies who meet the minimum standards because their competitive profiles have all been based on price and market share. Where we see a gap is in the sectors and organisations that put a value on performance. In order to succeed in this arena you must possess unparalleled integrity. You need to be committed and you will not survive if you are not agile and adaptable to their security needs. These factors naturally weed out the chaff from the best. We believe we have what it takes and leverage it by being locally grounded.

Describe the challenges you face at Warrior Security.

We face external and internal challenges. Externally, Warrior is as prone as anybody to political risk – which is very problematic, particularly in post-conflict areas – as well as areas such as non-tariff barriers, indirect and hidden taxes, an overly cumbersome and often obstructive bureaucracy and poor infrastructure.

Internally, we battle poor education and perhaps worst of all, selfish interests, which mainly manifest themselves in dubious ethics and poor integrity. In the case of the latter, this is so endemic that it is our biggest priority and I can say that a lot of our recent impact has come about because we have strong programmes to eradicate it.

What is needed to catapult Africa to the next level?

Africa is already an amazing place and we should not decry the progress on the commercial field that we have seen, especially in the last ten years, particularly in countries such as Kenya and Zambia. South Sudan will probably be the fastest growing economy in the world this year; Kenya and Tanzania are soon to benefit from oil and gas; and the DRC will soon have the largest gold fields in the world.

All the countries in which we operate have a vision and to my mind African countries must take ownership of the potential and must not blame their current woes on the past; instead they should harness the potential and deliver better infrastructure, especially power, road and rail networks. The combined population of the countries in which we operate is 170 million people, a fantastic market for growth but I believe it is imperative that we use the potential to drive up productivity through better health and education and drive down costs by improving on the costs of living and of doing business. Governments would do well to concentrate on cogent policies, the establishment of proper law and order and infrastructure, leaving businesses to deliver better food, products and better returns.

Tell us what advice you have for other entrepreneurs in Africa.

Africa in some ways has a surfeit of entrepreneurs and a shortage of good reliable workers. That said, my advice to genuine entrepreneurs is not to follow the herd, be disruptive and to gauge their business on the number of investors knocking on the door to back you. If there is no place in the market for your product do not bother and stay away from unethical products and practices as, in time, they will fail.

What lessons did you learn from the military that have contributed to your success in business?

The military can have a bad rap in terms of its perception as a draconian behemoth intent on wanton destruction; yet I was fortunate to learn and practice leadership at the tactical, operational and strategic levels. As a result I would like to think I am comfortable interacting effectively on many levels and across a diverse platform of ideas, things and actions.