West Africa is a region with great challenges but with even greater potential for British companies. With a growing middle class, British companies will find amazing opportunities for their products and services. The UKTI and Africa Business Venture have collaborated together draft a presentation on How to invest in West Africa.

1. HOW TO SUCCEED IN WEST AFRICA?
www.africabv.com
WEBINAR:

2. GUEST SPEAKER
Sonia Galat
Director Africa Business Venture
WWW.africabv.com

3. AGENDA
▪ Introduction
▪ Regional integration
▪ Success factors

4. INTRODUCTION

5. • Population: 340 million
• 18 countries
• GDP growth in 2016: 5%
• Challenges in 2015: 5%
• Ebola outbreak
• Oil price
• Growth driven by domestic
demand
Source: Ecowas map, http://www.ecowrex.org/mapView/
Presentation
of the region
Population: 340 million

6. REGIONAL
INTEGRATION
Part I

7. What to know about ECOWAS?
• Economic Community of West
African States
• Created in 1975. 15 members
States
• Mauritania is not a member
• Trade union in order to create a
single, large trading bloc
through economic cooperation
• Institutions also include a
Parliament, an Economic and
Social Council and a Court of
Justice.
ECOWAS
Source: Ecowas map, http://www.ecowrex.org/mapView/
REGIONAL
INTEGRATION

8. Main exports
ECOWAS EXPORTS
Objectives
• establishment of a free trade area between Europe and West Africa (ECOWAS +
Mauritania)
• Boost exports to member states as well as to the rest of the world.
• Europe: 28% of ECOWAS exports with 23% for the European Union
• Americas: 40 %of ECOWAS exports with 34 % for the Free Trade Association of North
America Trade
• South-South trade: 16% of exports with Asia
Main exporters:
- Nigeria: . Nigeria provides 77% of regional exports
- Ivory Coast: 10% of regional exports
- Ghana: 4% of regional exports
- Senegal: 2% of regional exports

9. • The West African
Economic and
Monetary Union
(UEMOA)
• West African Monetary
Zone (WAMZ)
• Goal: creation of a
monetary union with a
single currency
UEMOA
WAMZ
Source: Ecowas map, http://www.ecowrex.org/mapView/
MONETARY
INTEGRATION

10. Challenges
and threats
Inadequate infrastructures
Fragmented nature of the region’s market
REGIONAL INTEGRATION
Duality and multiplicity of integration
architecture
Including the private sector

11. REGIONAL
CHAMPIONS
Nigeria
• Population: 177.5 million
• Faster growth than Brazil and Russia
• Largest consumer market in Africa
Ghana
• Population: 26.79 million
• 2nd largest economy in West Africa
• Ghanaian stock exchange created in 1991
Ivory Coast
• Population: 22 million
• Strong infrastructure
• Focus on regional market (electricity export;
manufacturing goods)
Consumer
market
Growing
middle class Infrastructure
Common characteristics:
Source: World Bank, http://data.worldbank.org/, 2014

12. CONCLUSION PART I
▪ Several layers of regional integration
▪ A diversified region (laws; culture; language)
▪ Main entry points for companies: Nigeria; Ghana;
Ivory Coast
▪ Main challenges:
▪ Infrastructure development
▪ Regional integration not finalised

13. SUCCESS
FACTORS
Part II

14. UNDERSTANDING HOW TO EXPAND
• How do successful
companies grow in Africa?
• Which pattern do they
follow?
• What can we learn from
them?
Single market
Regional expansion
Regional hub

15. WHY DO COMPANY
FAIL?
Effective preparation is key
EXECUTION
PLANNING
MARKET SIZE
PEOPLE
PARTNERSHIPS

16. PLANNING
COCA-COLA EXAMPLE
GE AND OTHER EXAMPLES
• Operations in every country
• Network of local distributors
and entrepreneurs
• Regional hubs to support the
operations
• Central structure
• Regional shared service centre
• Ecobank:
• 3 IT hubs covering 30
different African markets

17. MARKET SIZE
Diversify your portfolio
to balance risk through multiple
markets
Advantage in markets still at early stage of
development
Reduce risk of political or economic instability
Provide sufficient scale
1
2
3

18. PARTNERSHIPS
CRITICAL FOR SUCCESS
RIGHT
PARTNER
New market entry
Local knowledge
Navigating bureaucracy

19. PEOPLE
Recruitment,
one of the
biggest
challenge
Resource
Skills
retention
Expatriates
And diaspora
Main issuesMain issues Solutions
Skills development
program
Internal
mobility
program
Recruitment
agencies
Local
partner

20. PROJECT EXECUTION
Qualities to succeed in West
Africa?
Human factor is
key
Networking
Patience
Flexibility

21. 21
• Sonia Galat
 Email: Sonia.Galat@africabv.com
www.africabv.com
Thank you very much for your attention!
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