Basics of Doing Business in Africa - Ghana

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  • Basics of Doing Business in Africa - Ghana

    1. 1. Doing Business in Doing Business in Ghana Ghana 1st Conference Call Recap Presentation provided on Thursday Oct 17th, 2013
    2. 2. Project Plan Date Description 10/24/13 @10pm Phase II Conference Call (specific sector opportunities, trade mission dates, perspective from on the ground in Ghana) Trade mission logistics, budget and itinerary – Special Guest TBA Launch of proprietary/private investor + partner portal Working session on business plans and execution strategy 11/4/13 @ 10pm TBA Ongoing
    3. 3. Who We Are Africa is on the rise. Our main goal is to get you plugged into opportunities to do business and give you insight on the business landscape. There are various sectors and regions that show high growth potential. Additionally, there are people on the ground who can share information on best practices, the culture of doing business and specific opportunities to engage.
    4. 4. Before You Begin… Doing business in a foreign country can be complex and daunting at times… The most important thing is to start on a solid foundation. Before getting started ask yourself what are you passionate about? Also know that doing business abroad has many levels. From basic travel to conducting due diligence on a specific investment opportunity, know your focus and know your limits. Having a strong partnership network ultimately helps to reduce the execution risk of your project/venture.
    5. 5. Question/Answer Matrix Question Response How do I bring opportunities based in Africa to potential investors or partners? Is there a formal process/best practice? The best way is to organize a trade mission for interested investors to see and experience the progress that is under way. Additionally, meetings can be set up with the respective sector ministers to help facilitate investment opportunities. If the investors themselves cannot travel themselves, gain an understanding of the key, sectors, and industry interest before highlighting the formal opportunities. (more detail on specific sector opportunities located in the appendix). Yes, through our network, you can travel to Ghana and conduct your own due diligence. Only until you are ready for business formation and incorporation is it advisable for you to explore local partners. The level of frequency you are able to travel back to Ghana will dictate the need for a local partner. For first time opportunity exploration, spend at least 2-3 months planning your trip and researching the economy and opportunities you want to engage. Resilience is key. The business culture in Ghana (and many other countries abroad) is different from the west in many ways. In many cases, building meaningful relationships with business partners takes precedence over the transaction itself. The concept of time is different as well (things don’t get done as quickly there as here). Finally, expressing an openness to learn the culture and language will go a long way. (don’t arrive just looking to do business) The Ministry of Energy and Volta River Authority both regulate the renewable energy industry. They have expressed interest and are in the process of rolling out a standard tariff and RFP process to bid on projects. More details will be provided on the next call and links to the energy industry are provided in the appendix. 1) Pick your industry focus 2) Do your research on the industry, size, competitors, cost to start business, needed partners and logistics 3) Open up a bank account and file incorporation documents 4) establish contact with related Ministry offices and ensure enough working capital to cover travel costs and incidentals 5) BE RESILIENT We will cover on the next call more details about specific IT opportunities… The tech sector opportunities are located in the appendix. If I am interested in forming my own business or traveling to Africa for business development, can I do it on my own or do I need partners? For doing business abroad, what does it take to be successful? How do you engage renewable energy opportunities? (what is the regulatory environment, process to get a contract, etc…) As an entrepreneur, how do you go from business idea to opportunity engagement to contract? What opportunities exist in the tech sector? (spoke specifically about IT)
    6. 6. Africa on the Rise      The potential for Africa to take center stage in the world is becoming more apparent as the global economic system seeks to rebalance itself. As the global economy recovers, 7 of the 10 fastest growing markets in the world are in Africa. China, India, Turkey, etc… have been and will continue to invest in the continent… For investment professionals and entrepreneurs the frontier markets of Africa offer growth and access to a growing and increasingly sophisticated middle class. Even with a modest western economy growth prospects are very centralized based on pockets of activity with high barriers to entry.
    7. 7. Your Expressed Interest     Interest in renewable energy projects Interest in purchasing real estate Broad entrepreneurial opportunities Interest in bringing Ghanaian opportunities to investors/partners Interest in travel/cultural exchange Levels of Engagement Level of Complexity 
    8. 8. Introduction to Ghana
    9. 9. Photos of Ghana
    10. 10. Notable Business Activity – Multinationals making a stake      2011 IBM ($100bn in revenue) opens office in Ghana - “The expansion of our procurement operations in Ghana will help extend IBM’s business value and service in an important growth market.” “Actis LLP, a private-equity company, will lead investment of as much as $1.5 billion in African commercial property to meet rising demand from international companies targeting a growing middle class.” “Development Partners International (DPI) has backed an investment into Ghana-based CAL Bank, in a deal valued at approximately $39.1 million.” “Asset manager Duet Group plans to make about $100 million of private equity investments in Ghana next year, taking a big bet on the fast-growing west African country.” “Vantage Risk Capital, Africa’s leading mezzanine debt provider, has concluded a transaction with Genser Energy Ghana to provide
    11. 11. Tourism and Travel = Growth Many international hotel chains have built and are in the process of building properties in Ghana. Ranging from 5 to 3 stars, brands like Marriott, Radisson, Hilton, and Movenpick… This indicates a willingness to invest in and support the growing business and tourism travel in Ghana.
    12. 12. Why Do Business in Ghana       A sound macroeconomic environment Immediate access to all markets of the Economic Community of West African States (ECOWAS) 100% foreign ownership is permitted On-going privatization in key economic sectors On-going infrastructure development Expanding stock market Competitive labor force Availability of skilled and trainable labor
    13. 13. APPENDIX
    14. 14. Helpful Information  Doing business in Ghana (highly recommended you review this document)  Sector details for business opportunities  Highly detailed investment report on Ghana  Private equity deals in Africa  African Development Bank Info  Telecom sector opportunities: Ghana’s telecommunications sector has registered one of the most significant growth rates in Africa. The government of Ghana (GoG) welcomes foreign contractors, but also wishes to attract new investors to its telecom sector just like the partnership between the government and Vodafone with the latter holding 60 percent of the partnership. The government is also committed to facilitating and undertaking the development of ICT applications to inform society and promote innovation. With combined support from the World Bank Group, other development partners and more than US$157 million private investment the telecoms sector has become competitive and a vibrant industry.

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