Looking to do business in Africa? There are things that you need to know

BY STEVEN KASZAB

There is a longing within many to return to the place where humanity began. Yes, Africa.

Visiting this continent will be a pleasant trip, seeing the many wondrous attractions and experiencing the large array of different cultures, languages and demographic centres. From North to South this cradle of humanity will inspire, intrigue and frighten you all at once. Visiting Africa and pursuing an opportunity to do business, there are two entirely different situations and experiences.

Long ago, many European, British and American Nations colonized Africa. A colonial power’s purpose is to take from the colony and give to their nation and so these colonies did just that. Each and every European Nation did some good and a lot of bad things while they were in Africa. Remember these same colonialists are still in Africa today, only they are known as multinational corporations, still stripping Africa of its natural resources, economic capabilities, and land, while manipulating Africans wherever they can.

The first lesson to learn is to do business in Africa you must be prepared to deal with open and hidden corruption. When the colonials were present so long ago, they stole each African’s future legacy by hook or crook. Many Africans in order to survive assisted these colonials and ultimately themselves and their respective tribes also. Africa became a petri dish of social evolution, where only the strong, clever, and corrupt will advance over the greater population. This corruption still remains. A hand under the table will appear in most transactions. You must be prepared for this and know how you will respond to this traditional way of doing business here.

Cultural and racial differences are very important here. Businesspeople of one region will support those they relate to. Similarity always encourages business dealings in Africa. The historic hatreds, mistrust and fears of Africa’s past are still very important and are reflected within each region of Africa. African Blacks in North Africa and South Africa still experience racism and exclusion. A person’s faith is also a tool of influence when doing business here. Understand your clients fully before approaching them. Know as much about them and the region they are located in also. Africans are shaped by the region and culture from which they come.

Investing in Africa will always be a long-term situation, never a short-term fix. Why? There is no such thing as stability within the various African economies. Currencies fluctuate like the tides off the shore of the Ivory Coast. Governments and their administrations are established and fall constantly. Since governments shape all aspects of African trade and their economies, be prepared to invest in things that will remain while these changes happen.

Also be prepared to compete with Asian and EU competitors. They are everywhere, have deep pockets and have a history of doing business on the dark side. Be sure to research who, what, where and the type of business. Who are your contacts and how do they do business? There are no governmental agencies to protect your investments or from competing concerns.

Approach a worthy and trusted consultant before entering the African dream. Those who live there and are bonded and trusted can and will make money for you. Their management will be expensive, but their assistance will benefit you in untold ways.