Global Business Perspectives

Much of the news around Africa is always negative, which is not necessarily always the case. 

Africa is the 2nd largest continent in the world and has the 2nd largest population in the world only behind Asia.

Africa has many emerging economies and the investment climates are becoming more favorable.  The top countries for growth :

1. Egypt

2.  South Africa

3.  Senegal

4.  Rwanda

5.  Kenya

Interesting notes:

1.  Time in Africa is a bit looser than here in the U.S.  If a meeting is set for 1:30, don’t be surprised if they don’t show up until 2 or even 2:30.  I would suggest you arrive on time but be prepared to wait about 15-20 minutes past the meeting time. 

2. There are between 1,000-2,000 known languages in Africa.  Be sure to understand which language is used in business for each country.  Many people will know English but your marketing materials should be translated for your target market to show respect and can make a good impression. 

3.  The roles of women in Africa are changing. More and more women are in leadership positions and female entrepreneurship is on the rise.  Especially in countries like Rwanda where many of the men have been displaced due to war and genocide.  However, don’t be surprised if some men who are practicing Muslims don’t shake a women’s hand in a business meeting.  As well as some women in Africa may merely nod as a greeting. 

4.  There is an AGOA grant that provides duty and quota free access to the U.S. and some European Countries.  I FC has increased funding for private investment.

5.  Ease of doing business in Africa is still not easy.  Many legal procedures are not in place for best business practices including taxes and customs.

6.  AIDS/HIV is huge issue for Africa with 15-20% of the population diagnosed with the disease which decreases life expectancy, has orphaned millions of children, strains the health system, depletes the educational system and stifles economic sectors.

Most of Africa was colonized by European nations and has struggled with ethnic divides often lingering from the colonization.  You must research the region prior to doing business there and weigh the pros and cons for your company as Africa can be a very rewarding place to do business even with fluctuating economic stability risk factors.  Attention should always be paid to building relationships first then doing business.

References and additional resources.