Along with a more educated population and growing middle class, these changes will bring on rapid growth in consumer spending. The temptation will be there for investors to enter these newly emerging markets quickly, but to thrive in these markets a more measured approach is the key. Western businesses need to do their due diligence and establish local partners that understand the social and regulatory hurdles.
Very Different From Western Markets
Investing in Africa can be very different from doing business in Western markets. For one thing, there is still a great deal of mistrust in some areas due to the recent colonial past. Corruption is also still a common problem. Investors need to commit resources on the ground in African countries and they need local assistance to make this happen. African markets are too complex to manage from a distance. A strong local presence is a key component of any successful investment strategy in Africa.
Understanding Regional Differences
Each region has its own unique customs, tax laws, regulations, and level of development. There’s no one size fits all approach to the African market. This is why many Western investors have avoided setting up shop so far, but with the right partners, these barriers to entry can be overcome. Firms like Shikana Law Group are in place to bridge the divide making investment in Africa an attractive proposition. They’ve already partnered with many large firms from Europe, Asia, and North America.
Regional Differences in Each Country
The importance of having local partners can’t be overstated. In Africa, regulations and customs often vary from region to region in the same country. This can be both challenging and frustrating for investors. Businesses that do attempt to go it alone without local help usually fail.
