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SEVEN THINGS TO UNDERSTAND ABOUT AFRICA BEFORE YOU DO BUSINESS THERE Africa is a fascinating place to do business. The general consensus is that it is challenging, but nothing makes you feel more alive than Africa. Challenging is a relative term. With a flexible mindset, doing business in Africa is more fun, interesting and rewarding than operating in other markets. Africa, with a better record of political stability than it has had in many a generation is now building a platform for its own development. Beyond merely mining and agriculture, Africa is developing a broad economy that will provide healthy returns for those that embrace the opportunity and work with Africa to support its de- velopment. We often reassure our clients that Africa is using the exact same tools as anywhere else, maybe, just slightly differently. Many of the lessons companies would have gained in other markets are applicable in Africa. It is worth being aware that they may work in different ways or that some things may express themselves in Africa. However, with a degree of understanding you will not find yourself lost doing business in Africa. When developing your strategy for Africa understanding the five ele- ments below will ensure you have a fighting chance of success: Africa is ’the last continent’: Africa is the last significant area of unrealised potential in the global economy. Its late economic emergence and challenging business environment mean that today competition is less intense than in other markets, which will not last. Despite some operational challenges, the time to enter Africa is now. But to succeed, Africa must be important to the lead- ership team.

Seven Things To Understand About Africa Before Doing Business There

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Seven ThingS To UnderSTand aboUT africa before YoU do bUSineSS There

Africa is a fascinating place to do business. The general consensus is that it is challenging, but nothing makes you feel more alive than Africa. Challenging is a relative term. With a flexible mindset, doing business in Africa is more fun, interesting and rewarding than operating in other markets. Africa, with a better record of political stability than it has had in many a generation is now building a platform for its own development.

Beyond merely mining and agriculture, Africa is developing a broad economy that will provide healthy returns for those that embrace the opportunity and work with Africa to support its de-velopment. We often reassure our clients that Africa is using the exact same tools as anywhere else, maybe, just slightly differently.

Many of the lessons companies would have gained in other markets are applicable in Africa. It is worth being aware that they may work in different ways or that some things may express themselves in Africa. However, with a degree of understanding you will not find yourself lost doing business in Africa. When developing your strategy for Africa understanding the five ele-ments below will ensure you have a fighting chance of success:

Africa is ’the last continent’: Africa is the last significant area of unrealised potential in the global economy. Its late economic emergence and challenging business environment mean that today competition is less intense than in other markets, which will not last. Despite some operational challenges, the time to enter Africa is now. But to succeed, Africa must be important to the lead-ership team.

There is not just one Africa. The world sees Africa as one, but the reality is that there is more diversity in Africa than there is anywhere else. From language to culture, you will encounter evident diversity even within one country. This means that a nuanced approach is required to understand the most effective way to both engage and operate within Africa. More importantly, it means companies must understand what African countries align with their strategic objectives.

Talent, market knowledge, and risk are bottlenecks. More so than in most other emerging mar-kets, talent and market knowledge are in short supply in Africa. Political, economic, and govern-ance risks remain in many markets. Companies must build 2020 Africa capabilities now. There is little doubt that some organisations may have to build their infrastructure or supply chains from scratch. However, in the current climate it is likely that there will be support at government level for such initiatives.

Africa’s talent rebound will be a second injection of growth. Africa suffered a significant brain drain over the past 40 years. However, as prospects improve, the mood in the African diaspora is in favour of returning home. Returning with skills gained often in leading organisations, their arrival will be a step change in Africa’s capability. When devising a strategy for Africa, appealing to the diaspora will provide the cultural awareness required in addition to the skills needed. Job creation in Africa benefits both sides of the equation.

The African customer is rising. An African consumer class—and a set of thriving African com-panies—is emerging and starting to reach critical mass, even more likely as the investment in non-mining jobs increases. Companies must develop products, services, and brands that reso-nate with these consumers and business customers. They also need to manage distribution to ensure that goods and services are delivered as promised. In other words, they need to meet the new African customers’ expectations.

Africa has an ambitious development agenda. African leaders are diligently working to improve the economic and social infrastructure of their nations. Consequently, companies should deter-mine how they can help countries achieve their development goals while also making a profit. They need to commit to Africa.

Africa remembers colonialism. Africans remember their colonial history and this makes them wary of anything that appears to mirror that. As such, entry into Africa must focus on partner-ships and creating situations where Africans also see significant proportions of the benefits. As with any region, they want to know that they have their hands on the reigns and control their own destiny. Those that build partnerships will reap the rewards Africa has to offer.

We conducted research among senior executives across a number of sectors to understand attitudes at Africa. A snapshot of our findings is presented below. In high-level terms, the future for Africa is positive. While we are aware that most economic indicators in Africa are rising, it is refreshing to see that overall sentiment has improved.

Those able to tackle the realities above will reap the rewards that a fast-rising continent has to offer. One of the areas that makes Africa unique is that many African citizens are comfortable is at least one major European language and with their colonial history are comfortable with European culture. This creates an excellent platform on which to build relationships and partnerships. One of the areas we emphasise to our clients as they embark on their African adventure is, ‘before you identify your benefits, identify how Africa benefits from your investment.

If you can achieve that then you unlock Africa’s vast potential.

Seymour Sloan Research

Traditional attitude how is africa changing? What Successful companies are doing

executive Priorities

Africa is a low priority: risks are too high and the returns too small.

Africa is the last untapped growth market and is growing rapidly across all dimensions.

Including Africa as a strategic priority.

Define the vision for AfricaGain board level acceptance and support

Companies serve small pockets of wealth, but the market is no wider than that.

The diversity of African markets creates opportunities for all market segments and risk appetites.

Assessing the diversity within Africa and identify complementary markets to compete in.

Identify the ideal entry pointsPrepare to deal with the diversity within AfricaRemain adaptable to new challenges and opportunities.

African businesses are run by expats, with little in the way of local talent development

While talent is one of the challenges in Africa, the risk profile is improving as many in the diaspora return home.

Develop future capabilities now while also making the most of the African diaspora.

Invest heavily in HR, talent and developmentIdentify African staff within your organisation receptive to relocationBuild effective retention strategies

There are insufficient African consumers for a 'mass market'.

The African mass market is booming and already customers are brand aware.

Understand the African consumer to identify brand and product opportunities.

Develop African-focused propositionsInvest in branding strategiesOptimise distribution and build resilient supply chains.

Selling in Africa may be viable, but making in Africa is not

Increased stability and a greater desire to modernise and develop has seen Africa become a manufacturing option.

Invest in African infrastructure and capital resources

Build partnerships in Africa to share experienceLook at a ‘made in Africa’ propositionAlign growth with the African development agenda.