Three immediately useful ideas for investing in Africa
February 27, 2023 – For twenty some years, I’ve been taking existing mid- to large-size American, European and Middle Eastern companies and investors into Africa and creating successful and sustainable growth that improves their bottom line, the careers and lives of their employees and the communities in which they work.
Over the years, I’ve found that a successful sustainable business in Africa (and really anywhere in the world) is straightforward…if you know your ABCs: Appetite, Bandwidth and Capital.
Appetite
An immediately useful idea to grow your appetite for Africa is to get on a plane and go there! Sit in the local café and watch people go by, pick up a local newspaper (even if you don’t know the local language) and get a feel for what is important. My favorite thing is to go to a grocery store and see what they sell, which brands are available, how the store is laid out.
Getting on a plane is not always possible for everyone, so another immediately useful idea is simply to challenge your current assumptions about Africa. Find podcasts and Africa-focused business magazines (preferably ones from Africa so not “western” ones) and read what they're writing about their country, and what's going on in the continent, in your field, or in your area of expertise.
When you find yourself thinking “oh but…” stop and ask yourself “why do I think xxx” or “is there another side I could view this issue from?”.
Be curious. It’s about broadening your peripheral vision, being open to new or different viewpoints.
Bandwidth
There's an Ndebele proverb I love which teaches us that: “first, you should use your head and learn; then speak.” Bandwidth is about learning, about preparation. And we learn by reading and asking questions: “teach my why…”; “share with me how you….”. As the old saying goes, “you can't really understand another person's experience until you've walked a mile in their shoes."
This isn't about a right or a wrong way to do business or how to lead. People from the Netherlands are very direct in their speaking while those from countries across West Africa are not. It's about understanding a potentially different perspective. For example, when you take your company to a particular place in Africa, you will be merging two different cultures to create a new, blended culture. To achieve this, you want to be able to take the best from both cultures and not negate or leave out key aspects.
Capital
An immediately useful idea having to do with capital for growing your business in Africa is remembering that capital is more than your day-to-day business expenses. And to help with this, I like to think of capital in three buckets: social capital, cultural, and economic.
social capital is what you invest in networks and relationships: e.g. attending or exhibiting at conferences, business dinners, staff outings, membership fees for joining local business associations
cultural capital is investing in people, values, experiences: e.g. training and development, personal development, sponsoring staff courses or educational pursuits
economic capital, in the case of Africa, often does require investing in infrastructure that might be taken for granted in other countries, such as access to consistent utilities or the internet; access to healthcare
Expanding your business into Africa doesn’t have to be any more complicated than expanding it to the country next door.
It all starts with knowing your ABCs!
Please reach out via the “Connect” link here on my website or via LinkedIn (https://bit.ly/DrDeanneDeVriesLI) and let’s work together to build you a thriving business that capitalizes on the African growth story.
In the meantime, you may want to pick up a copy of my book, Africa: Open for Business, via your local Amazon site. In it I share stories of how I’ve helped companies start and expand across Africa.
Here are links to two country sites:
Amazon USA: https://amzn.to/3zy8a9p
Amazon UK: https://amzn.to/33JObIY