Iam more optimistic about Africa than I have ever been in my career,” says Caterpillar CEO Doug Oberhelman. “Africa has changed greatly.”

The 37-year company veteran notes that it will not be long before the continent sees bigger foreign direct investment flows as economic and political conditions continue to stabilise, as has been the case over the last ten years.

Africa has seen a mining- and energy-driven recovery, which has had the domino effect of an increase in disposable income, which will, in turn, require an increase in foreign direct investment, he notes.

Oberhelman says Africa has a “huge population” that wants “to live better”.

“We are looking to make an investment in Africa.”

He notes that Caterpillar has on its radar screen the development of an African manufacturing plant, but cautions that this will not happen within the next two to three years.

Such a facility will also not manufacture mining capital equipment, but more energy- and construction-related equipment, with specialised mining equipment production remaining at the company’s existing manufacturing sites.

This means, however, that the capital equipment manufacturer will need to see “faster growth in the energy and construction sectors” in Africa.

Taking a global view, Oberhelman says worldwide population growth has seen a global consumer base that requires infrastructure and consumed commodities – all of which suits the Caterpillar brand.

“Every time a road goes in, or an airport, we want to be there.”

Oberhelman notes that global iron demand is expected to increase from 1-billion tons in 2010 to 2.5-billion tons in 2030. Copper demand is to increase from 19-million tons to 43-million tons, and aluminium from 41-million tons to 99-million tons.

Estimated total mining capital expenditure is expected to see a 9.8% compound annual growth rate to 2015.

Energy demand is very much in the same boat, with oil, natural gas and coal to account for 80% of the energy fuel mix through to 2040.

Caterpillar has certainly managed to cash in on the world’s hunger for energy and commodi- ties, with the company posting record results in 2011 and looking set to repeat this in 2012.

Sales and revenues reached $16-billion in the first quarter of 2012, compared with $12.9-billion in the first quarter of 2011.

“We are in a sweet spot right now,” admits Oberhelman.

Profit after tax reached $1.58-billion in the first quarter of 2012, compared with $1.22-billion for the same period in 2011.

The outlook is for the company to reach revenues of between $68-billion and $72- billion in 2012, a big jump from the $32.4- billion recorded in 2009.

A $10-billion trail of acquisitions in the rail, mining equipment and electric power sectors looks set to spur on these numbers further over the next few years.

Oberhelman is especially positive about the potential contribution from MWM, which “could be our jewel”.

MWM has developed an engine that burns natural gas.

Waiting in the wings is the acquisition of Siwei, which will be Caterpillar’s largest acquisition in China.

Siwei produces a roof support product line for the mining industry.

Barloworld, the South African Caterpillar dealer, in May, opened a R250-million remanu- facturing centre in Boksburg, which has the capacity to rebuild capital equipment components for customers in the mining and infrastructure sectors.