The document discusses key considerations for doing business in sub-Saharan Africa, including that the region comprises 48 mainland countries and 8 island countries, total two-way trade between the US and sub-Saharan Africa has increased significantly in recent years, and successful business requires understanding the cultural, economic, and security environments in African countries.

1. SUB-SAHARA AFRICA
November 8, 2011
Sabina Zunguze
CEO, A Gift To Africa

2. SUB-SAHARA
AFRICA
• Comprises 48
countries on the
mainland Africa
including 8 island
countries
Madagascar, The Comoros, Seychelles,
Mauritius, and Reunion in the Indian Ocean,
and Cape Verde, Sao Thome, Principe, and St.
Helena in the Atlantic Ocean)
• Excludes the mainly
Islamic countries of
North Africa
Western Sahara, Morocco, Algeria, Tunisia,
Libya, and Egypt - most of which border the
Mediterranean Sea.

3. TRADE: US and Sub-Sahara Africa
• Current trade between the United States and Africa is
mostly in oil and minerals, BUT there has been increasing
diversification.
• Total two-way trade:
– US and sub-Saharan Africa trade increased 57% over the first
5 months of 2010, compared with the same period the
previous year, reaching $33.1 billion.
– U.S. exports to sub-Saharan Africa rose by 7 percent to $6.4
billion during the first five months of 2010.
• Africa always displayed as Poverty, disease and conflict
– See good examples of Botswana, Ghana, Uganda, South Africa

4. Maxwell Lucas' risk map shows the majority of African countries fall into the
low/medium risk category.

5. SECURITY
• Political The key is to keep abreast of
current situation in countries where
events e.g. elections can have a significant
bearing on the security situation.
• Legal: The executive must negotiate a
swathe of challenges, from start-up
regulations to ambiguous tax payments.
• Personal: Cumbersome logistics, poor
infrastructure, abundant red tape, a
shortage of skilled workers

6. MEN Vs WOMEN IN AFRICA
• Gender Inequalities that may affect
you:
– Personal security, the performance of the
judiciary, and the time and cost required to
register, license, and operate a business
– obtaining credit, information needed to start
and operate a business
– for the most part the regulatory environment
may be “gender-neutral” in principle but with
possibly gender-differentiated outcomes in
practice

7. MEN Vs WOMEN IN AFRICA
• Gender Inequalities that may affect
you:
– Men and Women enterprises visualize
Corruption and labor regulations contraints
differently.
• For specific results see: WorldBank’s
document “Gender, Entrepreneurship, and
Competitiveness in Africa” by ELENA
BARDASI, etal.. at
https://members.weforum.org/pdf/gcr/africa/1.4.pdf

8. DOING BUSINESS IN AFRICA
• Doing business in Africa is
much like doing business
elsewhere with nuances,.
• The continent’s unique
history, diversity, geography,
political, and institutional
landscape. The result is that
one cannot do business
without recognizing that this
legacy has shaped the
business environment in ways
that cannot be ignored.

9. DOING BUSINESSin Africa
Doing Business IN AFRICA
• Understand the areas of need and high profit. For Start-Ups :
Don’t Come without being Informed
• Educate yourself about Africa from sources other than the
Discovery Channel. Consult with the Chamber of Commerce,
the Embassy, or traders in the country of your interest. Get
information about your business interest from Chambers of
Commerce or business consultants. Educate Yourself
• Develop a sound business and marketing strategy. Understand
their environment, tailor your product to the environment
Don’t Communicate the Wrong Attitude
• Identify reliable business partners in Africa either by yourself
or through the Chamber of Commerce or the relevant
Embassies. Don’t Get Trapped in the Web of Brokers and
Connections

10. DOING BUSINESSin Africa
Doing Business IN AFRICA
• Visit the location if you intend to establish a company or an
outlet. Don’t Expect to Do Business in Africa and Not Be
There.
• Follow up on every arrangement to make sure that
conditions and terms are fully understood and are being
implemented.
• Arm yourself with a lot of patience and keep an open
mind because communication and correspondence from
Africa may not flow as smoothly or as fast as you may
expect.
• Understand the cultural environment of the African country
in which you intend to do business. Don’t Go It Alone

11. DOING BUSINESS in Africa
Doing Business IN AFRICA
• Use a consultant, especially those that have a real
understanding of Africa. Be mindful of the three
Ps of African business: Pensiveness, Patience,
and Perseverance. Pensiveness demands the use
of common sense. Success demands a lot of
patience. Above all, you must persevere and be
persistent but polite.
• Lucrative as it may be, the African market is not
without pitfalls. Keep your guard up and insist
on cash transactions as far as possible.
• Establish direct contacts with your business
counterparts in Africa

12. Conclusion
• Security – Political, Legal Issues, Personal
Safety
• Negotiation Skills – Cultural hierarchy (men
and women), command respect
• Cultural Factors – respect and appreciate
nuances in different countries & within
countries
• Relationship Management – Time looked at
differently, physical presence, Trust

13. Useful Resources
• http://www.doingbusiness.org/ - by
International Finance Corp (World Bank)
• http://wbl.worldbank.org/
• http://www.afribiz.info/content/what-it-take-
to-do-business-in-africa
• http://library.stanford.edu/depts/ssrg/africa/b
iz.html
• http://www.africasunnews.com/doingbusines
s.html#

14. Useful Resources
Business Opportunities, Conferences,
General Information
• LinkedIn:
– Africa – All Things Business
– Africa Gateway
– Africa Import Export Business
– Different country Chambers of Commerce
– Regional groups: SADC, COMESA, ECOWAS, etc..
• Facebook
– WIIB, etc..