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Embarking on Doing Business in Africa – Tips for Women Entrepreneurs


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.

--By Chimuka Moore

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