Walk like an African

Africa is brimming with business opportunities, says African specialist Victor Kgomoeswana. He set out some of these, with advice on doing business on the continent, to agribusiness leaders at Standard Bank’s agribusiness lunch in Durban recently.

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Whatever made farmers the great agricultural entrepreneurs they are today is not going to work in the next 10 to 15 years. To remain great means doing something different – and that starts with one’s thinking. We are part of the African continent, whether we like it or not. And the solution to our slow-growing economy does not lie in South Africa in the long term; it lies beyond the country’s borders.

West Africa is home to three of the world’s top four cocoa producers – Ghana, Ivory Coast and Nigeria. These countries export raw agricultural commodities, but the potential exists to build a chocolate industry here second to none. We could move from a region that worries about cocoa prices to a region that has command and control of the global cocoa and chocolate business.

Before oil was discovered in Nigeria nearly 60 years ago, this country’s economy depended on agriculture. The country wants to restore that economy – and it is looking to you. Young Nigerians are being encouraged to move into farming. The country is already a net exporter of cassava and various other commodities. So, when are we going to move into countries such as Nigeria, Ethiopia, Tanzania, Zambia and Ghana? Below is a 10-point checklist outlining how to invest in Africa – and do it properly.

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1. See opportunity in Backlogs
Regard a backlog as an investment opportunity. If you do this, you will make it. If you don’t, you will perish. The Democratic Republic of the Congo is a country with many backlogs, including hunger and infrastructure. It still doesn’t have a national identity card system. Do you dare do business in a country like that? Well, if you don’t see opportunity there, someone else will.

2. Don’t budget for bribes
The story of corruption in Africa is old. It’s everywhere you go, among politicians and middlemen all trying to get an extra buck from you. But it isn’t sustainable to budget for bribes. You didn’t build your business in South Africa with bribes, so why try do so in a foreign country?

This doesn’t mean you should be naive – there will be obstacles. But do not let the fear of having to bribe somebody stop you from exploring the continent. There are people out there doing business. The richest African man is Nigerian. The richest African woman is Nigerian. The second- richest African woman is Angolan. These are countries that rank very high on the Corruption Perceptions Index of Transparency International.

3. See yourself as an African
As South Africans, we believe this continent needs us. But we need each other as Africans.South Africa is a good brand because of what it has done for the continent, such as when it intervened next door in Lesotho when an attempt was made to overthrow the government. It’s that kind of diplomacy, as well as bilateral and multilateral agreements, that works in South Africa’s favour. The rest of the continent will embrace you as a South African – just make sure you leave your superiority complex here, if you have one!

4. Poor people value quality
Poor people value quality more than you think. Just ask Unilever; they’ve mastered the continent. They’ve also mastered doing business in emerging markets because they upped their quality game when they moved into poorer or lower per-capita economies.

5. Governments need you

Form as many partnerships with governments as you can; you can’t do business in these countries on your own. And I’m not talking about partnering with connected crooks. People who name-drop are dangerous; they’ll give you shortcuts if you want them, but it will lead to your destruction. Don’t look at issues such as land reform as obstacles. Governments are struggling because they don’t have the expertise you have. So, make it your business to partner with them.

6. Partnerships and influence
Before you go to a country, understand what they are trying to achieve and build a strategy based on that. And don’t think you don’t have power. As a business person you can influence local government, banks, schools, universities, and the media, among others. Think solutions, not problems!

7. Think regional
There are 54 African states, but this does not mean you need 54 strategies. Rather, have a southern, western and eastern strategy – because Africa is moving towards regional integration rather than disintegration.

8. View africa from Africa

Think, walk and talk African. Catch a flight to any destination in Africa and you will be amazed at how much information you gather. Moreover, it will be first-hand and reliable, not a remote desktop study. People will welcome your efforts to explore their country. Visit Nigeria and learn to speak English with a Nigerian accent. If you merely look at Nigeria from the comfort of Sandton, all you’ll see is Boko Haram! The country will seem so dangerous and chaotic that you will never go.

9. Learn from the Chinese
The Chinese learned that a relationship starts with giving, not taking. The country has a population of 1,36 billion and needs food, land and resources to meet that population’s growth. They know that African countries are willing to exchange these commodities for the building of a road or two. Let’s learn from the Chinese. Let’s find a way of going into Swaziland and Lesotho, for example, and finding out their needs as agricultural entrepreneurs. We’ll build relationships and there’ll no longer be a need to worry about Chinese investment in this region.

10. Information
Newspapers will point you in the right direction. Start reading African newspapers such as Nigeria’s Premium Times, Daily Champion and Vanguard. They will tell you where opportunities lie.

Victor Kgomoeswana is a journalist, TV anchor, and author of Africa is Open for Business (2014, PanMacmillan). Phone him on 011 941 4338 or email [email protected].

The views expressed in our weekly opinion piece do not necessarily reflect those of Farmer’s Weekly.