“B” IS FOR BANDWIDTH
June 13, 2023 – Now that you’ve got an Appetite for Africa, it’s time to talk Bandwidth.
Too many people I’ve worked with say “I have money and a product/service, I’m ready for Africa!” Well, I hate to break it to you, but you are not ready…except maybe ready to be disappointed.
Bandwidth shows the readiness and willingness of a company to do their homework before starting a business in Africa. It often takes months, even a year or more of meetings, travel, conferences, proposals, even moving there. Having the Bandwidth is being willing to put the people, the time, the money, the travel to do the necessary due diligence so you know what is required to operate a successful sustainable business in Africa.
Let’s look at three areas you will want to invest your Bandwidth in order to understand doing business in Africa: History & Culture; Leadership. Market Research.
History & Culture
History and culture are important to understand because they influence how business is done and how leadership is viewed. They influence values, timekeeping and ethics, as well as how decisions are made. The inability of companies and their leadership to adapt to foreign cultures or understand how culture and history influences leadership and business has been a major cause of business failures.
It is difficult to start, grow, or manage a company successfully in Africa without an appreciation for her wonderful mix of cultural, political, economic, and social contexts that are complex, multi-layered, and interwoven with historical events.
This is not about a right or wrong culture or way of doing things. Rather, with an understanding of history and the diversity of cultures, you grow an appreciation for how and why business is conducted in certain ways and what is expected of companies.
Leadership
Leadership matters, particularly in challenging environments. Research has shown that cross-culturally competent leaders are a strong contributor to profitability because their ability to effectively work in different cultures gives companies a competitive edge.
But what makes a leader effective across different countries and diverse cultures? And how can you find these cross-culturally competent leaders or become one yourself so that you can give your company that edge?
Here too, it is not about a right or wrong way of leadership. It’s about finding what works for you, your company, your employees.
In my book, I go into detail about five different approaches to leadership found in western and African cultures, respectively:
1. Individualism vs. Community
2. External vs. Internal Control
3. Workers vs People
4. Company vs Community
5. Materialism vs Collectivism
Building cross-cultural leadership acumen is about the willingness, the awareness, and the mindset to have a learner’s heart to be able to see and address cultural nuances. It is not an expectation that local employees in a particular country in Africa must adapt to whatever culture you or your company comes from. It starts with you and me being willing to adapt to the country we want to do business in.
Market Research
What should your market entry strategy be? Do people need your product, or do you just think they do? If so, how much of your product or service will they need? What are the current trends in your chosen industry and how might they change in the next five to ten years?
These questions cannot be correctly answered from a boardroom thousands of miles away. And you won’t find your answers on the internet. Nor are there many market research companies you can phone and say “tell me…”. The key is having the Bandwidth for you and your team to spend time on the ground yourselves, gathering the necessary information, seeing things with your own eyes, building relationships, learning how business is done, and identifying your customers’ needs or how they use your products. Yes, this costs money, energy and time. However, the intel you gain gives you a competitive advantage that no one can match.
Learning Bandwidth from Chameleons
From a Wolof proverb we learn that: the chameleon changes color to match the earth; the earth does not change colors to match the chameleon.
Investing in Bandwidth helps us know the colors we need to change to blend into and be successful in the local business culture, find the right leaders and understand the market for our product.
To dig more into this topic of Bandwidth, the A for Appetite and C for Culture, please get a copy of my book, “Africa: Open for Business” – which was voted Best Africa Business Book of the Year!! - on your local Amazon site. You can get a print, audio or ebook version.