Digital trends in Africa
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take advantage of new opportunities
Visa?
avoid obstacles on your way to Africa
Security
prepare your business operations
Uganda
the gateway to East Africa
Find your local business partner the platform is here
doing business in Africa
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Contents
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Business opportunities in Uganda
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Partnerships in Africa
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Comet Consular Services takes you to Africa
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Guardian - prepare your business for challenging environments
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Digital Africa
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Africa Innovation Network presents a high profile seminar on sports and business in Africa
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Dear reader
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elcome to the new B2Africa Magazine. In this edition we present articles about partnerships, African diplomacy and selected cases of Nordic companies doing business in Africa. Among other we bring an exclusive interview with H.E. Ambassador of Uganda Zaake Wanume Kibedi who shares his thoughts on business opportunities in Uganda and on the East African market.
Africa: Challenges and solutions
A number of African countries have recently experienced an economic set back. Growth rates have been disappointing and dependency on commodities has again proved to be a great challenge for many economies in Africa. This is especially true for relatively large Danish export markets like South Africa and Nigeria. For Nigeria the low oil price has hammered the economy, and South Africa is struggling with slow Chinese demand, a commodities slump, sharp currency declines and the worst drought in decades.
B2Africa Magazine Nordekon ApS Kigkurren 8G, 3. Floor 2300 Copenhagen (+45) 7027 2625
Despite the decreasing trend there are also bright spots. In East Africa, Kenya and Ethiopia are showing growth rates of 5-6 per cent and in West Africa, Côte d’Ivoire is moving forward with a growth rate of around 8 per cent. According to World Bank Group’s flagship publication ‘Doing Business 2017’, a total of 80 reforms, making it easier to do business, were implemented in 37 of 48 economies in Sub-Saharan Africa. That is an increase of 14 percent over the previous year. Kenya made the list of global top 10 improvers for the second consecutive year. As an example Kenya has made registering of property easier by increasing the transparency at its land registry. As many countries in the region improve their investment climate and undertake macroeconomic policy reforms, foreign direct investments are expected to continue to grow, although at a slower pace.
Editor Edition Morten Søgaard Autumn/Winter 2016. 2. edition ms@nordekon.com Readers 5500 downloads of last magazine Design and Layout Advertisement Morten Søgaard fls@nordekon.com
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Africa can be a challenging place to do business, but with the right approach it can lead to great opportunities for Nordic companies. In this edition we look at partnerships as a means to a successful approach in Africa. Further a digital evolution is on the rise in Africa that brings along new opportunities for Danish companies to take part in. It’s our hope that this edition of B2Africa Magazine can inspire Danish companies to see Africa as an attractive continent for investments and that it can lead to new innovative and sustainable solutions and partnerships since there is a great demand for Danish products and services in Africa.
“The young generation wants to reach out to the world. Consumer behaviour is undergoing changes and people have started to focus more on quality instead of prices.” H.E. Ambassador of Uganda, Zaake Wanume Kibedi
Enjoy reading Morten Søgaard Editor
Cover photo, Moses Mengu at the Africa Innovation Network seminar - photo: Morten Søgaard
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H.E. Ambassador of Uganda Zaake Wanume Kibedi - Photo: Morten Søgaard
Uganda offers a luxuriant climate with great tourist attractions and the potential of being the gateway to the East African region. For Danish companies, interesting business opportunities can be found within infrastructure, agriculture, healthcare but also within the most recent area, ICT.
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Uganda The Gateway to East Africa
B2Africa Magazine met H.E. Zaake Wanume Kibedi, Uganda’s Ambassador for a talk on how Danish companies can benefit from the potential.
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Why should Danish companies invest in your country?
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of 12.5 million people from the middle The Uganda Revenue Authority classvoluptam, or above, which is dolor considerable the quunt first ped corruption free Obit, aliquas as aceperibecame aerspel ipid moluptatur in to dolecta the Nordic countries’ institution under her im leadership, so it a comparison autatustis sa solupid qui blandus quis ea samus ipsandi qui population. myqui hope shevolenti will alsonctusci clean up aut eumet que non cus, in nullestiunt,isad custhat dolori the Roads psaecatecate niendi asperit. FictoAuthority. te pore, Uganda is a member of COMESA There is infrastructural vellanis voluptia vid et ium sendae provit andus ut massive escillaborem dolorum (Common Market for Eastern and transformation taking place in not Southern Africa) so when you are only Uganda, but in the entire East operating in Uganda you will not African Region. need any further requirements for MARKETPLACES queregion. sitata quidelietAn eum ex ende-is Thealiquodi exporting tovolethe whole Northern Quias restiae genis repudio nseniasinexample ne et most, sedit fuga. catem. Et officius quo quat quiatem eum evelliquia Lacea For Danish companies operating Corridor Integration Project moluptatus. Simet derro quodi namus dolore et exerum sent dis from eaque Uganda have access experum that will connect the everis pli-you even rae ius, as volori dit quam aliquae bus. Vid enimolupaut voloreperum facit lia alic tem dolore to nonsequo the American viased theutAGOA countries in the region tas quo market quo mi, es quossum excest quae volest, alit to om-a (Africasitaerovid Growth and explaborumet Opportunity asi Act). dolut and moluptat take trade quo blautecte nonectus everia di qui quodictota il It comnimos is an opportunity to penetrate new level. et The project bit, sa remolupta sunt isto dolecto alis venimentet Os ut vellab ipsam, odic pro voluptias mos the American offered by the eumendi encompasses faceped errorummarket totas eiunt. Giametesequam,not iliaest offic tem. tus. Inctum reic to asperion et adis but United States regarding tariff free and rem only railways, Beaquam repe reimo eni totatiae et ut exped et voustrum etur? into aditatio iummarket ad et luptat asit quota senis free access the US roadsidio as cor well. Quiam auda solupdolorae audamus latur. 6,000 products. has just Bitatquatur tafor queover voluptatis idis queItium cum been renewed for 10 years.
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The fact that every region in Uganda has investment potential underscores the importance of a good transportation network. We are not only focusing on roads, but air transport as well to facilitate tourism, which has become the
major income for the country. To this end, the government is planning to construct four domestic airports that can support tourism and production all over the country. We would be happy to invite Danish companies to take part in infrastructure projects.
In which sectors do you see the greatest potential for partnerships with Danish companies? We shall look at the fastest growing sectors in Uganda. ICT (Information, Communication and Technology) is one sector that is growing rapidly and has been a focus
area for the government. Secondly, infrastructure development within roads and green energy which coincidentally is a sector in which Denmark has excelled.
The Northern Corridor The Northern Corridor is the busiest and most important transport route
in East and Central Africa, providing a gateway via Kenya to the landlocked economies of Uganda, Rwanda, Burundi, Eastern DR Congo and South Sudan.
The main Northern Corridor transport network is connected to the Port of Mombasa, Kenya, and includes a road network, railways belonging to Kenya Railways Corporation and Uganda Railways Corporation, rail-lake transport, inland water routes, container terminals and an oil pipeline. The importance of the Northern Corridor Route for Uganda and its neighbours has meant that both the Government of Uganda and international development partners have devoted substantial resources to its upkeep and improvement over the last three decades.
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For us to transform a larger portion of the population to the middle class, we need sufficient energy. We are also looking at education and health as focus areas in the context of oil & gas and mines. Another very important sector is agri-business. Uganda’s backbone is agriculture. That is an area where you will find 72 per cent of our labour force. We are working on becoming more efficient, and Denmark has excelled with the latest technology. So, here I see good potential for partnerships, and remember that almost all agricultural products of
Uganda are made in an ecological way. Let me emphasize that ICT is on top of the agenda. Our service sector is developing rapidly because of the growing middle-class and so has the financial sector. Now more than ever, more people have bank accounts. Even more people are paying bills and checking local market information and prices on their mobile phones. We would like to become more efficient in the public sector and I would very much like to invite Danish companies to partner with us in developing the public sector in terms of ICT improvement.
What does the typical consumer in your country look like – what are their demands? First of all we are a young population and as such, consumer behaviour is undergoing changes. People have started to focus more on quality instead of price. The move away from cheap products from the East is evidence of this. The young population is more openminded and not restricted to one specific product. The advent of social media and other information sharing applications have widened their array of choices and information on the
latest products. There is a great demand for classy goods, and that is why for example the Danish company Jack and Jones just recently have initiated production of T-shirts in Uganda. But have in mind that your service needs to be fast, because Ugandans are not that patient in business life. Remember to explain what people are paying for, so it will be easy to understand that quality products last in the long run.
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In terms of partnerships, what do local companies need from Danish companies? - any specific Danish “know how” that you would like to mention? That would be within green energy and agri-business, especially within food processing. Remember that this country (Uganda) is rich in terms of raw commodities, but unfortunately most of it is exported before it has been processed. A good example is in the production of cotton and coffee. Therefore we need more value addition techniques, another area Denmark has excelled in.
We would also like to attract companies that can help standardize our products so we, with a higher volume, can start exporting agricultural products for example to the European market. And lastly let me emphasize that Kampala is a fast-growing metropolitan capital and we would like to attract Danish companies within construction with the know-how of low cost housing creating sustainable cities.
COWI and infrastructure projects in Uganda In 2008 COWI A/S in consortium with COWI Uganda Ltd. and Kwezi V3 Engineers, South Africa won a major African highway project west of Lake Victoria with the reconstruction of sections of the Northern Corridor Route from the Mbarara - Ntungamo section, Ntungamo-Kabale section and the Kabale-Katuna section (approx. 155 km). COWI has recently been involved in a number of infrastructure project in Uganda, among others the reconstruction of a new expressway from Entebbe airport to Uganda’s capital Kampala which is a distance of 37 km.
Further COWi has been responsible for the planning and design of all stages as well as technical surveys for the reconstruction of the airport which includes: • 20.000 m2 extension of passenger terminal • New 10.000 m2 cargo centre as well as apron and road access • Extension of apron for passenger aircraft • Major refurbishment of two runways including runway lighting • Renovation of pavements on remaining aprons Sources: www.cowi.com
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Comet Supports Danish Companies Doing Business in Africa
Comet Consular Services is all about supporting companies become more efficient when doing business abroad – to do so the company is offering a number of services. Experiences from the field gives the company a good insight in culture and in where business is heading in Africa.
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ith more than 30 years of experience Comet Consular Services knows how to deal with embassies and challenging bureaucratic systems.
For businessmen and women traveling abroad time is money, and therefore the company assists in visa applications, legalization of contracts and export documents etc.
“It is Comet’s ambition to be an advisor for the customer and offering the whole package. We visit the embassies for our clients, but we want to be in contact with them earlier. When an application is turned down, it is often because of insufficient time.” Carsten Østberg, Director Sales & Operations at Comet Consular Services.
Good planning - a means to overcome challenges For companies doing business in Africa, and especially for small and medium sized, entering the African market can be a challenge. Challenges come in many variations, but some can be avoided by good planning. According to Carsten Østberg the company experiences, that for some African countries it can be rather challenging to get at visa. For example is it quite difficult to get a visa to Angola. If you apply for a work visa, the Embassy will look internally at what kind of workforce they have available. “If you hold a special position which they cannot fill themselves it is easier to get a visa, but if your profile is also found locally, they can make it difficult for you”, says Carsten Østberg.
For this reason Comet Consular Services has specialized within this area. The company handles documents for all involved authorities: embassies, translators, the Ministry of Foreign Affairs etc. and naturally this is a big advantage in complicated cases. The close corporation with multiple authorities has given the company valuable knowledge, and the experience is also useful when Comet assists African and/or subsidiary companies in their visa applications to the Nordic countries etc. For Comet this is a growing market.
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Comet is not only supporting companies that are on their way to Africa for the first time. Also a number of frequent travellers are using their services. It is possible to hold two passports and the company has a number of clients that have handed over one of their passports, for Comet to take care of everything.
“Our clients can pick up their passport in any given Danish airport before departure. We have a 24/7 service and we have always someone at the airport to look after your passport”, says Carsten Østberg.
Comet digital solutions help customers plan their business trip Comet InfoBook is an online platform where the client can find relevant information and documentation. This includes all the information from the embassies, and any given order can be be tracked and traced.
“We make the process easier for the client. Our online platform creates more flexible solutions and they don’t have to worry about rules and regulations. They just log on to our online system this is how Comet creates value”
The world is changing and few pays with cash. “This is often a big headache for many corporate clients. That is also why our clients find our service interesting when having a meeting abroad within short notice”, Carsten Østberg explains.
Carsten Østberg, Services.
According to Carsten Østberg the platform can be of great value to clients that are traveling to destinations where the visa process is more complex. E.g. for Ghana you need four applications, and all the information is easily accessible on the Comet InfoBook platform.
Comet
Consular
The world is changing and few people pay with cash. “This is often a big headache for many corporate clients when dealing with the embassies (the embassies often prefer cash when processing an application, edit.). That is also why our clients find our online service interesting”, Carsten Østberg explains.
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Lessons learned from doing business in Africa Africa is a big continent and two embassies are not alike. Rules and regulations, and not at least culture, can differ quite a lot. “We have good relations to the African embassies but you also have to have in mind that deadlines might be a bit blurry, and sometimes you have to “push” to get things happen. For this reason we build relations on many levels at the embassies, for example with the case workers behind the counter and preferably also with someone from the trade department or the ambassador”, Carsten Østberg explains. The company is in close contact with its customers and have come across many Danish and Nordic companies that are doing business in Africa. One important lesson learnt is how crucial it is to find the right local partner.
“In many countries it is the law that you set up a joint-venture with a local partner. Often Danish companies have to hire local staff from the partner, or they have to hire local people as board members. They might not be contributing, but you have to pay them a salary. These are issues to be aware of, and trust is therefore key when entering a partnership”, says Carsten Østberg. According to Carsten Østberg, one of the solutions is to meet other Danish companies and learn from their experience via business networks and different events. It is important to talk to somebody who is already on the ground, and find out how they are working.
“When clients do not have time to stand in line at the embassies, or time and resources for trade documents to be legalized and translated, Comet Consular Services steps in.” Carsten Østberg, Director Sales & Operations at Comet Consular Services.
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Where is the traffic heading? Things are a bit tough in Africa at the moment. The company’s activities are 25-30 per cent down in Africa, and this is mainly related to declined traffic to the oil producing countries. “Other sectors are doing quite well
and there is an increase of companies within infrastructure, from building roads to tele-communication. The activities are further related to electricity and power plants with all its sub-suppliers”, says Carsten Østberg. “On a geographical scale most activity is related to Ghana and Nigeria in the West. For East Africa: Uganda, Eritrea and Ethiopia are on top of the list, and then of course South Africa – but in SA you do not need a visa”, says Carsten Østberg. “It appears that Central Africa is not an area of interest for Danish companies, at least not for our customers. Ghana is increasing, and actually Gabon is a growing market and one of the few bright spots related to the oil & gas industry”, Carsten Østberg explains.
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Facts Since 1985 Comet Consular Services has assisted companies in visa applications, legalizing of contracts and export documents etc. Most of the clients are based in the Nordic countries, and the company has departments in Stockholm, GÜteborg, Copenhagen, Oslo and Helsinki, and partners world wide. Comet Consular Services is market leader within the field, and it’s 100 employees handle around 60.000 visa applications and 15.000 trade and legal documents a year.
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Peter Blom, at the Africa Innovation Network Seminar - Photo: Morten Søgaard
Digital transform How can Africa benefit from digital transformation - and what opportunities will it create for Danish companies?
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“Africa should not be still playing catch-up when the fifth revolution (digital revolution, edit.) comes around.” Poul Kagame, President of the Republic of Rwanda, at the 26th World Economic Forum on Africa, May 2016.
mation in Africa Martin Sønderlev, at the Africa Innovation Network seminar Photo: Morten Søgaard
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Digital trends
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echnological change is transforming virtually every economy around the world and access to the internet is a powerful driver for growth and productivity. At the Africa Innovation Network seminar, held in September, in Copenhagen, Martin Sønderlev Christensen, partner at Socialsquare – a leading digital consultancy company in Denmark, explained that a digital transformation encompasses new types of products and services, new business models and new organisational models. According to Martin Sønderlev the impact of a digital transformation could be greater in Africa than in any other region, because the continent is in the relatively early stages of adoption of the internet, whether it is digital technologies that offer fast processing power or big data, which leads to new business models and improving business operations. Significant infrastructure investment has taken place in many African countries and has given rise to increased access to mobile broadband and rapid spread of low-cost smartphones and tablets. It has enabled millions of Africans to connect for the first time, and large corporations are introducing new affordable models specifically geared to the African market. Demographic trends, including urbanization, rising income, and a generation of young skilled people within information communication
technology (ICT) will take the development to the next level e.g. via innovation hubs like IHub in Nairobi, Kenya. Martin Sønderlev explains that the digital transformation affects the possibility to introduce new products and services like innovative webbased applications. Dynamic new business models can capture large opportunities if you move rapidly and decisively. “The open source platform can trigger huge gains in cost savings for your company and the Internet makes things more simple, more social and more scaleable – it cuts out the middleman so you can take your typical idea or product directly to Africa.” Martin Sønderlev, Socialsquare.
Partner
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African countries preparing for the digital transformation
Many African countries have strategies for ICT in place. In Rwanda the president has initiated the government’s joint venture with South Korea’s KT Corporation to build a 4G network that aims at reaching 95 percent of the population within the next years. Further Rwanda is emerging as a regional high-tech hub and boasts one of sub-Saharan Africa’s fastest GDP growth rates. This remarkable progress can be seen in relation to the country’s rapid evolution as a knowledge economy, powered by smart policies and investments.
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Transforming the key sectors in Africa
According to the report, “Lions go Digital - The Internet’s transformative potential in Africa” by McKinsey Global Institute, the Internet’s greatest impact in Africa is likely to be concentrated in the following sectors: financial services, education, health, retail, agriculture, and government. For the financial services the Internet will reduce transaction costs and bring services to people who may live far from the nearest bank branch or ATM. An example is Equity Bank in Kenya that targets financially excluded segments through agency banking and zeroopening-balance accounts. It has been so successful that by 2014 it held 57 percent of all bank accounts in Kenya. Another remarkable case is M-Pesa that provides cellphone-based banking services. Many schools in Africa lacks sufficient textbooks but can now access educational content on affordable tablets or e-books. In Mauritius for example the African Leadership University uses technology to reduce teaching costs and deliver innovative e-learning modules and they are planning to build 25 campuses across Africa. Another example is the E-learning platform Eneza, which is offering online mobile certificate courses. In Africa people travel long distances for medical treatment. The Internet is enabling greater use of remote diagnosis, treatment and education.
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In South Africa for instance mobile application technology is finding its way into the city ambulance services to ensure that the closest ambulance to the scene is dispatched. Like other regions retail via E-commerce is expected to grow rapidly in Africa, and it will open up a new shopping experience for Africa’s growing middle class. For the governmental institutions the Internet is a powerful tool to improve transparency, streamline service delivery, and automate revenue collection. The Internet can increase farmers’ access to expertise and information on everything from weather, crop selection and pest control to management and finance. It can also improve access to markets, generating better prices for produce. An example is Kenya’s iCow which is an agricultural platform developed for small dairy farmers with online and mobile phone-based information and educational videos. It has been credited for increasing milk production by 30 per cent among its users. Furthermore, examples of technology being used in certain forms of distributed infrastructure such as smaller-scale solar energy solutions for households is on the rise.
M-Pese as a stepstone for the Danish company M-PAYG An example of a successful company that has built a new business model using the adoption of new technology is the mobile telecommunications operator Safaricom, in Kenya.
The company launched the mobile payment initiative M-Pesa in 2007 and today it provides cellphone-based banking services to millions of people in East Africa and beyond. Services have gradually been added including airtime and electricity purchases, bill and salary payments, online shopping, remittances and salary disbursements. Today, M-Pesa is recognised as one of the most successful financial services innovators in the world with 14.6 million users. One of the companies that have taken advantaged of the new technology is the Danish company M-PAYG that provides pay-as-you-go solar energy. M-PAYG provides a service which allows low-income families access to clean energy through affordable monthly mobile money installments. For 5 dollars a month the company is offering solar power to the rural population of Tanzania in order to charge electrical devices like mobile phones etc. The company works together with M-Pesa in order to process the transactions since many of the costumers do not have access to a bank account. Instead they are using the mobile bank provided by M-Pesa.
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Facts • Sub-Saharan Africa had the fastest rate of new broadband connections between 2008 and 2015 at 34 per cent per year. Broadband connection in this part of Africa is expected to increase from 20 per cent in 2015 to 80 per cent by 2020. • East Africa is a global leader within mobile payments. Africa’s penetration of smartphones is expected to hit at least the 50 percent mark in 2020, up from only 18 percent in 2015. • E-commerce is growing quickly in Africa. Nigeria has experienced a doubling of revenue each year since 2010 and in South Africa the revenue grew by 28 per cent a year over the same period. • In sub-Saharan Africa, cellular-enabled machine-to-machine connections are expected to grow by around 25 per cent per year to 30 million by 2020. That being technology enabling networked devices to exchange information and perform actions without the manual assistance of humans. In many sectors, this is a game changer. Source: “Lions on the move”, McKinsey Global Institute, Sep 2016.
At the Africa Innovation Network seminar - Photo: Morten Søgaard
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Partnerships as a means to success Crucial for starting your business in Africa is finding the right partner. Further you need to focus on culture, as the business culture differs. For a talk on partnerships B2Africa Magazine met Søren Jeppesen, associate professor at CBS and expert on development of companies in developing countries and Flemming Sørensen, CEO at Nordekon. Nordekon has recently launched a platform where companies can find partners in Africa.
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How to get success on the African market? Søren Jeppesen: It is important to keep in mind that most of the African markets are fairly small, they are undeveloped in some senses and they differ from each other. For a company this means, that the potential scale or size of a particular market often is limited.
About Søren Jeppesen Søren Jeppesen’s main research concerns the development of firms in developing countries.
It’ s seldom that an entry strategy for one market can be replicated in another market, so in many cases scalability or economies of scale are limited. So, few markets in Africa are easy to enter and be successful in. The good news is then, that the potential for earnings is quite high as the competition often (but not always) is limited and prices are fairly elastic.
He works on issues regarding local factors which influence the development and growth potential of SMEs in the developing world.
How then, to be successful under such circumstances? Keeping the situation in mind and combining a set of elements should provide a reasonable chance of success; • It’s about being realistic, acknowledging that the endeavor will take time, and probably longer than anticipated, hence setting aside sufficient human and financial resources and being patient. • Targeting one or maybe two markets at the time is key. In particular for newcomer firms to the African continent, this approach should ensure proper focus – and it should safeguard against spreading too thin and hence risking investing too much money in activities, which end up not paying off. • Local presence in the market is crucial. The ideal approach is to set up a small marketing or sales office or at least be able to come frequently in order to meet people, suppliers, customers and get a close feeling of what is going on, including seeing what the competitors do and not do. While this approach is also costly and maybe too costly for some, an alternative can be to figure out whom to partner with on the ground as this gives local presence too.
His research projects concerns African firms and institutions, youth, entrepreneurship and employment in Ghana, Uganda and Zambia, and the importance of Codes of Conduct for working conditions in the textiles and clothing industry in Southern Africa.
Søren Jeppesen - Photo: SJ
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What is the role of Partnerships? Søren Jeppesen: From a resource point of view partnering with relevant organizations and entities is often recommendable. Because it is difficult and time consuming for a company to acquire the necessary information and experience in order to be able to function profitably in a given market. Here, organizations and entities with knowledge and experience from the market have valuable assets, which make partnerships attractive. Whether we for example talk about a consultancy company with knowledge
in the industry or the market in general, an NGO, a business association or a government entity, all may have the insights that your company lacks. Partnering with such organization can be a less risky short-cut to the market. The downside of this can be that it is difficult to identify partners that share the goals and ambitions of your company. Even if you find some level of similarities, it is time consuming to develop and make a partnership wellfunctioning.
Why are partnerships important when doing business in Africa? Søren Jeppesen: Partnerships or partners can bring in valuable knowledge on what to do or what not to do, which is difficult for a company to obtain by itself. One example is that it is often very difficult to get reliable market information on almost any African market, as the institutions which usually compile this in our part of the world, are not doing so on the African continent. Or if they do, the statistical information is most often incomplete. Here, a consultancy or marketing bureau that has worked in the industry for some time can have a lot to offer. This mainly concerns more ‘mature’ markets, while other organizations like NGOs might be the ones to talk to, if your company is into newer growth markets like
renewable/green energy, sanitation and water, ICT and so on. Based on their work in these industries and an increasing attention to partnerships with companies, NGOs often have considerable knowledge on these markets. Finally, public or government entities might also be possible partners as they are looking for companies that can provide new solutions to long-standing challenges. These government entities might be able to grant a license, or provide the land if needed for construction of a demonstration plant etc. Sometimes the partnerships involve two or more organizations, which on the one hand can expand the knowledge base,
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but on the other hand also may increase the risk of differences in working methods, resources allocated and objectives. In any case, in spite of the potentials, it is important to keep in mind that
a partnership takes time to develop and mature, so once again a company should be ready to invest. Otherwise it is not worth the effort, but will only lead to frustrations and thereby wasted time and money.
How does Nordekon facilitate business in Africa? Flemming Sørensen: At Nordekon we operate with two phases when setting up business in Africa. Phase one is the investigation phase that involves feasibility study and elaborating of the business plan. Often this is followed by a field trip on a business delegation where the company meet a local partner, if required in the business plan, and hereby hopefully closing the deal. Phase two is when operations start locally. As a Danish company you need to obtain licenses and permissions,
recruit staff and perhaps build sales and/or production facilities. Crucial for setting up your business in Africa is finding the right partner(s) to work and cooperate with. Furthermore you need to put extra focus on the cultural differences as Africa has different business cultures than we are used to in our part of the world. Nordekon has for the same reason just launched the largest B2B Platform for Danish companies looking for partners in Africa and vice versa.
Nordekon B2B Platform The Platform was recently launched by Nordekon and is Denmark’s largest platform for companies looking for business partners in Africa (and Asia). Nordekon B2B Platform is a marketplace where companies can see and search for a local partner listed by sectors, which makes it easy in relation to identification and contact. By the end of this year Nordekon B2B Platform is aiming to contain information about more than 5000 Danish and African companies. Sign up Nordekon also facilitates Denmark’s largest Africa business network, Africa Innovantion Network. Read more
Flemming Sørensen, CEO and Partner Nordekon - Photo: Nordekon
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Guardian Africa: Great opportunities – a few precautions Photo: Guardian
Africa is full of beauty and interesting business opportunities, but for companies considering starting up in a more challenging part of the continent, right measures should be taken into account.
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D
oing business in the region has never been more appealing than it is today. For many companies, operating and establishing business in Africa, has brought their business to a new level. But for those companies who do not have experience in operating in such different environments, the step can seem drastic. However, this should not stop them from expanding their business activities into Africa’s emerging markets.
“When sending employees to challenging areas, the safety of the employee and therefore of the business is a matter of being prepared – risk can be reduced with the right measures. Thus, operating in a challenging environment can actually be altered to your favour, when prepared to do business where others don’t.” Founder and managing partner of Guardian-srm, Norman Kristiansen.
Preparation is crucial to success
Being prepared and having the right security, resilience and mitigation procedures in place is a question of “duty of care”. Basically there are two factors in place. As a first priority there is the safety and well being of the employees. Giving the employees the right attention, training and support provides them
with the right tools to manoeuver in challenging situations and to handle critical events. Secondly, being trained and prepared for critical situations allow the employees to focus on their tasks abroad, knowing that the management has procedures in place to act accordingly.
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Dealing with security in a challenging environment
Photo: Guardian
When Guardian-srm consults companies in relations to entering new markets, the first thing that needs to be in place is a Corporate Security Policy.
Furthermore the Corporate Security Policy raises awareness and generates a corporate security culture in the organisation.
This has to be set up mainly to define responsibilities of the traveling employee as well as of the management and to supply Standard Operations Procedures (SOP’s) to handle crisis situations.
This has to be accompanied by the right special risk insurances and the appropriate training for the management and the traveling employees. Thereby the employees receive skills on how to behave and avoid potential dangerous situations.
“The essential in prepping for a deployment is the focus on the details along with a shared understanding of the importance of security between the top management and the employees.� Norman Kristiansen.
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The case: Nigeria
A mid-sized Danish energy company, having recently commenced business with the Nigerian government, approached Guardian-srm for support as it was to send employees to Nigeria. The company was to have a local office in Port Harcourt and it was the first time the company would have employees in a high-risk area. “The initial thing we had to find out was: what is the company’s policy regarding security and what are your ambitions regarding ‘duty of care’?. By clarifying the facts, we could outline the company’s risk willingness and available resources.” Says Norman Kristiansen about the assignment. On-site security assessments of the facilities and hotels, where the employees are to live and work, were also supplied. All of the risk assessments were done to provide the company with local knowledge about emergency procedures, possibilities for medical treatment and external security measures.
In this case, the top management wished to view the worksite themselves, so Guardian-srm’s senior advisers accompanied them to Port Harcourt. The top management found the security measures to be in line with the Corporate Security Policy and felt ready to deploy employees to Nigeria. A security partnership agreement, which supplied the employees in Nigeria and the management in Denmark with a 24/7 emergency responder and advisor in case of critical events, was established between Guardian-srm and the company. Through specialised and skilled security risk consultancy, the company went from having no knowledge and experience with operating in a highrisk area to being fully integrated in Nigeria after six months. “The essential in prepping for a deployment is the focus on the details along with a shared understanding of the importance of security between the top management and the employees”, states Norman Kristiansen.
How to prepare in six steps • • • • • •
Outline the Corporate Security Policy. Educate employees and management. Conduct on-site assessments. Establish a security partnership agreement with an experienced provider. Supply traveling employees with pre-travel advices. Establish a 24/7 hotline in case of emergencies.
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Africa Innovation Network (AIN) AIN presents a high profile seminar on the 8th of December 2016. The speakers will present cases regarding sports and business in Africa
Sports and Business in Africa • CEO and Club Owner, Mr. Tom Vernon will present his thoughts and vision for the talent concept, Right to Dream which is connected to FC Nordsjælland (Football Club North Sealand). • Mr. Karsten Werge will provide us with key insight on how FC Midtjylland works with Sportstar College/Academy in Denmark and Nigeria. • The Global Goals World Cup initiative and Eirsoccer will be presented by Co-Founder, Mrs. Rikke Rønholt Albertsen. • “Hand The Ball” learning initiative will be presented by founder and Chairman of the board, Mr. Lasse Boesen and Managing Director, Mr. Kim Fischer. • Mr. Glenn Cummings, CEO at “Alive and Kicking” will present their project regarding production of foot balls in Ghana, Zambia and Kenya.
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The Right to Dream talent concept
Right to Dream Africa is a purposebuilt, fully-residential academy located on the banks of the River Volta in the Eastern Region of Ghana, providing scholarship opportunities to young and talented Africans. The Academy programme focuses on the development of student-athletes through football, education and character development, enabling them to access Right to Dream´s world-class graduate pathways.
FC Midjylland and Sportstar College Ikast-Brande
FC Midtjylland (FCM) was the first football club in Denmark to build a football academy back in 2004. Since then the project has evolved into a college which besides football, also has badminton, handball, golf, cycling and volleyball on the program, and with the ambition to unite sports and education. Since 2002 FCM had a formal collaboration with FC Ebedei in Lagos, Nigeria. FCM runs and finance a local football academy along with former professional footballer Churchill Oliseh. Karsten Werge, integration manager at FC Midtjylland and head of the Sportstar College, will make a presentation about the work taking place outside the football field for the young talents arriving from Nigeria.
The Global Goal World Cup
The Global Goals World Cup (GGWC) is a women’s amateur soccer tournament
designed to expand the scope of a conventional sport event. They draw on the perspectives of designers, architects, academics and activists, to merge true global citizenship with the game of soccer. To qualify, teams have to play and take action for one of their favorite 17 UN Global Goals. The GGWCup is developed by the nonprofit sports organization Eir, founded by Danish coach and campaigner Majken Gilmartin. In 2015 Majken teamed up with former elite athlete and sustainable development activist Rikke Roenholt, to launch the new ”play for change” movement in partnership with the United Nations Development Programme and The Danish Ministry of Foreign Affairs.
Hand the Ball
“Hand The Ball” is a non-profit foundation aiming at improving the quality of life of children and teenagers in developing countries and disaster areas world wide, through physical, non-competitive group activities with the unique Hand The Ball puncturefree handball.
Alive and Kicking
Alive and Kicking (A+K) sports balls are hand-stitched in Nairobi, Lusaka and Accra. Through targeted employment, Alive and Kicking creates and sustains ethical jobs. The majority of A+K balls are sold through African retailers, and UNICEF, UEFA, Arsenal and Coca-Cola have used A+K footballs for projects across Africa.