The smart way to do business in Africa

The recent Agriculture Africa Export and Investment Symposium highlighted the export of agricultural products to Africa. “Doing business in Africa can be daunting, yet there are boundless opportunities in the profitable export industry. All you need do is identify the risks and manage them accordingly,” said Ismail Dadabhay, general manager of Credit Guarantee Insurance Corporation’s export division. “The key to long-term successful business in Africa is building good relationships. Accept that the biggest risk is not getting paid for export transactions. There are no easy pickings. a very competitive market, importers are sophisticated and you’ll find no backward business practices.” According to Dadabhay, an exporter can’t afford to conduct business at arm’s length. “You have to go to your market, meet your customers and acquire first-hand knowledge.” P aul Runge, CEO of Africa Project Access, said the key to success is being one jump ahead. “You have to know what’s going on in the market before everyone else does. It’s important to identify financial instruments to fund projects. Making a nuisance of yourself is the only way to benefit from upcoming projects like the Ethiopian sugar-processing plant, the canned-beef factory in Ghana and a new Kenyan abattoir, to name but a few.” Acclimatise to Africa, he advises. “Never let small things like speaking French put you off. Get someone in your office to learn the language and just get on with it. Also consider the social and environmental impacts of your business venture. The Tana River sugar project in Kenya is a prime example of a business that excludes community interests. Keep the community’s employment needs in mind, as well as the environmental impact on their livelihoods.” R unge added that Africa greatly appreciates South Africans’ knowledge and experience. “The only way to address the demand for food and capital is to enter into joint-venture initiatives as a united continent,” he said. – Cornelia du Plooy