The decision to do business in Africa is a solid one that will provide entities with the requisite return on investment. Indeed the industry dynamics within the continent has shifted to position Africa as the market to invest in. Prior to making an investment a business case for the entity should be developed in order to position the continent within the entity’s scope. The dynamics within Africa are quite diverse when we look at the culture and demographic within each country. Indeed in terms of infrastructure, policy and regulation we have a diverse set of countries with specific structure for each prospecting entity. The goal to participate in business within the continent is in knowing how each country regulates its market and ideally what is needed to play favorably as an entity.
Africa shows significant growth in terms of profitable industries to venture into. This article by Olayinka Sodiq itemizes a set of favorable businesses to deploy 5 fastest growing businesses in Africa in 2022 . In the article we have an indication that technology is on the increase within the continent and as such business with a strong technological integration would be suitably placed to venture into the markets.
Closer to the ground the dynamism would portray a certain shift. This therefore calls for detailed market intelligence to inform investment decisions. Market insights indeed would involve a topline scope of the regions of interest in a country, followed by on ground traversing of the same target regions and noting which businesses are placed in brick and mortar and which operate fully online. When scoping for business one should however demarcate the target region into urban and rural areas. Urban areas are easier to serve with products and services due to the increase of infrastructural development while rural areas are suitable for raw material sourcing and would need a good introspection to note opportunities to source.
Where we choose to do business in Africa will largely be determined by the political, environmental, social, technological, economical and legal environment. These should thoroughly be determined prior to making the move into a certain market.
All things said however, Africa remains the fastest growing in population and infrastructure and those taking the steps to enter into business within the continent are well placed to benefit from the suitability of the continent to business.
Bonus link on businesses to venture into on the continent
Nyangi Consultants LLP 