More and more women entrepreneurs are seeking to do business
in Africa, and given the potential the culture offers, this isn’t surprising. Africa’s
population is predicted to reach 2 billion by 2050, and the country’s own
female entrepreneurs are using their businesses to empower one another. But if
you’re seeking to do business in Africa, it can be hard to know where to start.
Below, I provide a checklist to support your first steps.
1. Adopt a Positive
Attitude: For women in particular, it pays to maintain a “can do” attitude
when working in male dominated industries in Africa. While women were once
restricted to home and caretaking roles, today’s Africa offers more rich and
diverse opportunities. (Just look to Forbes
Woman Africa for examples of empowered female entrepreneurship today).
There are some men in Africa that are also increasingly open to working with
women—in fact, they often view women as being especially reliable. Yes, it
takes patience, positivity, and perseverance to enter male dominated
industries, but women need not be discouraged. While opportunities in more
traditionally female areas continue to exist, industries like information
technology, manufacturing, and farming are by no means the preserve of men
anymore. Once you have conducted the appropriate research, I encourage you to
step forward with confidence in whichever industry is right for you.
2. Research Gross
Domestic Product and Populations: Start by calculating the gross domestic
product (GDP) of each African country, in order to judge the strength and
growth rates of the economy. This Investopedia
article explains how to calculate a country’s GDP. When you discover a
healthy GDP, research that country’s population more specifically to judge
consumer market potential. This article
at Euromonitor International gives an idea of how to use population data,
and the World Bank Development
Indicators give broad measurements of population growth and composition,
dependency ratio, birth rates, and death rates.
3. Continue to
Research Each Country’s Needs and Restrictions: Further important questions
to research include: What do the country’s inhabitants want or need? What are
the legal restrictions in each country? Which countries provide an easier and
more supportive business climate? By balancing your research of each country’s
market with your understanding of its needs, you’ll be able to assess the
complexities of doing business there. To support your research, check out this
article at CNN, or work through the World Bank’s annual global ‘Doing Business’
rankings with a focus on African countries.
4. Narrow Your
Research down to Your Specific Sector(s): Of those countries you’ve already
identified, which offer rich and secure opportunities for your area of
business? CNN, for
example, cites access to energy, along with ease and reliability of
registering property, as major concerns for entrepreneurs who are seeking to
embark on business in Africa.
5. Research the
Competition: Research your potential competitors, but bear in mind that the
existence of worthwhile competition can indicate market opportunity, as well as
potential challenges. John Warrillow, author of Built to Sell, writes
in Inc., “The market has a funny way of sorting out the good ideas from the
bad, and if there is no competition for your idea, chances are, there is no
market either.” Ask yourself what the competition you find says about your specific
opportunities in the African country or countries that you’re considering.
6. Establish Contact
with the Embassy: It is often recommended that you introduce your
company—and/or your interest in doing business—through the relevant country’s
embassy. The US Department
of State explains, “Establishing contact with the embassy or consulate
before conducting business, will provide you with current information on
economic, trade, business trends and practices.” (Note that the same web page
also offers a number of
great resources for US entrepreneurs who are starting a business abroad.)
7. Network: Networking events can be a great away to learn more about business in Africa, while also forging valuable new connections with fellow entrepreneurs. For example, the World Economic Forum provides a powerful opportunity for joining discussions about entrepreneurship in Africa. (You can download the latest annual report here.) Also consider researching and attending trade shows that are relevant to your business.
7. Network: Networking events can be a great away to learn more about business in Africa, while also forging valuable new connections with fellow entrepreneurs. For example, the World Economic Forum provides a powerful opportunity for joining discussions about entrepreneurship in Africa. (You can download the latest annual report here.) Also consider researching and attending trade shows that are relevant to your business.
--By Chimuka Moore
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