This week we attended a workshop presented by the Cape Chamber of Commerce on the challenges of doing business in Africa. Some very interesting speakers were present; here are some snippets of their wisdom:

Identified Risks

  • Non payment of accounts
  • Exchange control issues with unstable currencies
  • Problem and expense of moving people around different regions
  • Many different staffing regulations
  • Credit risk insurance
  • Freight and logistics issues
  • Labour unrest

Some recommendations

  • Find quality partners in each region before launching a new venture
  • Visit places personally, do not do internet meetings
  • Mitigate risks by investigations and relationships
  • Cover all your bases with legal contracts and clauses
  • Build in arbitration and mediation clauses into all contracts
  • Do not hurry business deals, let them evolve at their own pace
  • Plan for the worse, hope for the best

Even with all the challenges and risks, Africa remain the most lucrative market on the planet with countries boasting growths in excess of 25%. First one in gets the catch.