“On the world’s most diverse continent, companies need a deep understanding of local context” (Camarate et.al., 2016)
Africa has witnessed significant growth in the last few years. Just a couple of years ago, many experts and analysts labelled Africa as “the next Asia”, foreign investors watched with growing interest as local economies on the continent experienced significant boom. Many of the world’s fastest growing economies were from Africa.
Even with the decline of commodities which have been the primary driver of economic growth on the continent, Africa still remains a promising long-term growth market. The average GDP growth for Africa was about 3.4 percent in 2015, this was a full percentage point above growth rates recorded globally.
As sub-Saharan African markets present great opportunities for foreign investors and multinational corporations, so also do they present significant challenges for foreign interests who lack the requisite knowledge on how to navigate the complex socio-economic and political landscape of Africa, a complexity made even more challenging by the diversity of the continent. Foreign investors and multinational corporations with desire to do business in sub-Saharan Africa are often met with complexities that are radically different from what they are familiar with in their markets of origin.These challenges range from those that are company-specific, to challenges that are country-focused and global issues. Hence, challenges include multinational corporations’ choice of market entry strategies, decision to pursue: growth paths; strategic direction; new management approach; risk management approach; and, corporate social responsibility policies.The real challenge for them is the achievement sustainable growth and profitability in their markets of choice in Sub-Saharan Africa while contributing explicitly and consistently to the overall wellbeing of the human-being and other stakeholders. These complexities and how they are navigated, have the potential to make or break these companies in their effort to establish a foothold in such unfamiliar territories. As once stated by the business management guru – Peter Drucker, “culture eats strategy for breakfast”, the wide gulf which exists between these competing cultures have proven to be key determinants of how organisational strategies eventually pan out in practice.
Africa Monitor aims to solve these problems by providing tailor-made research and consultancy services to those who are brave enough to venture into the African landscape for business. We act as your local knowledge partner in shaping your Africa business strategy. We place at your disposal our extensive knowledge and experience on doing business in Africa, which covers socio-economic and political issues with potential to significantly impact your success.