AFFRONTA Doing Business in Africa:Lesson 1- Basics
One Country - One Approach Africa is huge - It is not a connected economy It is a myriad of isolated countries - economically and geographically Each country requires Independent approach and Effort Consider carefully which countries to enter Cue (example): ● Available natural resources ● Population size ● Type of Industry AFFRONTA www.affronta.com
Long-run, Build Contingency African economies are growing but in isolation they are each very small. In this context, do not expect big volumes, big returns, immediately. Making a business run smoothly requires time...set aside buffer time for contingencies. Key challenges of getting around the complex political and regulatory contexts, developing local resources and talent need a lot of time to overcome. Building a contingency of say, 2 or 3 years is always a wise thing to do.
AFFRONTA www.affronta.com
Local Context Local knowledge is key to navigating the complex world of approvals and regulations. This is necessary for licensing and registration as well as for acquisition of key resources like land, leases, talents, etc. Alternative ways to circumvent initial hurdles is the direct acquisition of established local companies. Case in point L’Oreal in Kenya. Working with established consultants can help you greatly to easily set-up your company and avoid hurdles in approval and local regulations. This can save you a lot of time and money, as well as confusion and ‘headache’. AFFRONTA can guide you here...contact us www.affronta.com AFFRONTA www.affronta.com
Extended Efforts Sometimes basic services are in short supply even in large cities...water, electricity, transport, supplies, internet, e.t.c. Hence prepare to do more to overcome these challenges: invest in power generators, import fuel, make own water and sewerage systems, Likewise, professional services like marketing, accounting, etc (not forgetting government services) may not live to your expectations...manage your expectations. See the opportunity. These barriers to entry keep your competition away,,,what’ s the chinese word for crisis, that also means opportunity?
AFFRONTA www.affronta.com
Develop Local Talent Shortage of talent springs out of lack of adequate opportunities; this is common across Africa. Literacy levels vary from country to country. Choose to train and develop local talent to fill up your resource needs Shortage of managerial expertise creates high demand for good talent Expats can only be a short term solution because of the salary premiums associated with ‘risks’ of living in Africa. Talent sustainability is key Collaborate with local organisations and universities to develop talent
AFFRONTA www.affronta.com
Corruption is not the way There is a corrupt side to Africa... and there is not - know the difference A growing local business community understands corruption is not the way Choosing the right side may likely slow your business, but it will not prevent you from being successful... you will eventually get there
Be public and open to media... highlight your project’s benefits. Corrupt politicians are very careful to stop deals when communities understand benefits‌ Understand the power of communities, get to know their real needs
AFFRONTA www.affronta.com
AFFRONTA Solutions ( New Business Are you looking to invest in Africa? Need some help getting there? We at AFFRONTA make your Capital Investment, Trading and Operational decisions easier to make and less riskier to undertake. Let’s guide you to help set up your new business.
www.affronta.com
)
Business Expansion If you have chosen to expand business into Africa or to simply do trade and invest into Africa, we can customize a specific solution for your need.
Talk to us: info@affronta.com +971 50 5499406 AFFRONTA www.affronta.com