Posts Tagged ‘business strategic planning’

The Secret of Successful Businesses in Africa

The success of an African business is possible through effective business modeling and business strategic planning. With all the greatest challenges ahead, you need to have the most appropriate responses. Investing in Africa is a very mindful task, to become successful you must come up with the best ideas of how you can overcome them without so much delay.

But there is a secret in achieving success in an African business. One thing that will sum up all your plans and hardships. That is being ready for changes. Changes in business environment is somewhat dangerous. You’ll never know what is waiting for you. Almost everyday, there are changes happening around the continent. Sub-Saharan Africa works as a continent, no country is working for progress single-handedly. This is why changes is massive. The incapability of the African government to do intelligent business policies is also a factor. The future of any business depends on these changes. So if you want to become successful with your African business, always be ready for changes and respond to it professionally and effectively.

One of the challenges in an African business is uncertainty. This is a challenge whose ending is unknown. The lack of skills to adapt to changes is what will push a business to failures. Uncertainties in power, acceptance, production and financing are things an investor must overcome.

It is inarguable that there is a vast opportunity waiting for those who are interested in investing in Africa. But the question is, are they aware of the risks? How are they going to use their marketing strategy in the midst of corruption, financial shortage and non-civilized people. These are the areas that fluctuates up to now, even though the region has shown remarkable changes on their economy and community.

The power that the African government has can threaten business firms. Changes in government policy may ruin your business plan. And this, you need to address quickly before everything that you have worked for fades.

The acceptance of the people on foreign trades must be closely monitored. When something sounds unfamiliar to them, chances are they won’t embrace it. Africans easily change their minds. A foreign business might also sound colonization to them. You have to assure your market that you are not there to abuse their natural resources.

The global financial crisis makes the African economy’s future unpredictable. Maybe today, the African stock market is soaring but on the next day, weeks or months, be prepared because the African stock market might sink.

Changes on Africa’s business environment is the greatest challenge that an investor will face. Everyday that you wake up is another day. If you can emulate with these changes, then you should know that you belong to Africa. Successful business people are those who can keep up and endure the changes.


Promising African Countries To Invest In

Aside from South Africa and Nigeria, there are also other countries where a business strategic planning can dictate the campaign of an investment. Countries where risks are stepped on by an organized business environment and of course, flooding opportunities. The two aforementioned nations were the most-sought after economies by many foreign investors. But by looking further, opportunities are not just in South Africa and Nigeria. It is raining business hopes all over the region. From 53 countries, more than half of it were great places to develop any ventures.

Star Africa, a London-based business consultancy group handled by the African Rainbow Consulting, conducted a survey wherein the results came out were praises on many African nations. According to them, the top five potential African investor destinations, from top 1 to to top five are: Nigeria, Ethiopia, South Africa, Mauritius and Tanzania. Also from the report, few more years, Africa is gonna be able to surpass the Middle East to become the second fastest growing region, after overtaking Asia.

From 53 African countries, the survey was conducted basing on the criteria of good governance and social capital of many nations as well as the sector of electricity, internet, telecommunications and water supply and irrigation.

Among the top five, Ethiopia, Mauritius and Tanzania are a little unfamiliar to investors. They were not that noticeable for many until progress on different sectors occur on them.

Prior to the released survey result, investing in Ethiopia is advisable because of the following:

  • stabilized political climate
  • Liberalized free market economy
  • fair macro economic policies and stable foreign exchange regime
  • potential market with 57 million people
  • direct access to other 23 African countries
  • Huge domestic raw material base
  • Abundant and inexpensive labor force
  • Strategic location with proximity to the lucrative markets of the Middle East, Europe and Asia
  • Participation in the privatization opportunities

It is also likeable to invest in Mauritius because of the following advantages:

  • Democracy and a stable Government
  • A very good infrastructure with superb communications
  • An excellent network of sea and air transport
  • A free market economy anchored on export oriented activities
  • A highly literate, bilingual and friendly labour force.
  • High standard of living, good international schools
  • Favourable market access and very good incentives
  • An experienced financial sector providing excellent services

Tanzania is also a haven for investors because:

  • there is political stability
  • macroeconomic framework
  • An experienced financial sector providing excellent services
  • Protection against nationalization
  • transfer of capital or profits
  • settlement of dispute
  • access to credit from domestic resources
  • and reliable investment support institutions.

This is report by the Star of Africa is a support to those who want to help Africa without providing aid. Because there are a lot of them that has the intention, there are only few reliable information available to urge them.

The Nature of Business Relationship and Communication Style in South Africa

The 2010 FIFA World Cup South Africa is getting nearer, isn’t it? It is not just a feast for Africans and football enthusiasts, it is also a celebration for many businesses. For sure, on different corners of South Africa, especially in areas near the game venues, the atmosphere will be all about business. You’re a poor businessman if you will not take advantage of this event. Outside the arenas where players are chasing each other, where fans are screaming up to the top of their lungs, the name of the game is to profit. For both small and big business, this event is their time to shine.

However, just because the opportunity in investing in Africa at this point is abundant, doesn’t mean you are more likely to succeed. There are many thing you need to learn aside from business strategic planning and leadership development. But don’t, what trying to get at here isn’t that complicated. You don’t need to make initial researches, you can learn it even if the 2010 FIFA World Cup is about to happen. Business relationship and communication style, this can be one of the main ingredients to become successful in doing business in a foreign land, especially African countries.

First, there are two kind of South African, the black and the white. And they are different when dealing with visitors and business. White South Africans prefer plain-speaking than an overly diplomatic approach. They scrutinize each words that comes out from the person they are talking to. This is to assure that there is sincerity and commitment. Black South Africans are usually using diplomacy in communication and very observant. They let the person they are talking with finish first before they raise questions. And also, depending on the person’s cultural heritage, communication style may vary.

In common business situations, Africans like to be called in their first names. Greetings are necessary, especially for the first meeting as a sign of respect and welcome. Usually, it should be preceded by Ms or Mr. They are transactional and do not require to build personal relationships for business use. They also use metaphors and sports analogies to clear out their points. South Africans always choose face-to-face confrontations than email, letter or phone.

In making appointments, South Africans would go for the one with advance consent. Meetings should can be formal or informal, but what’s important is that you will send a letter summarizing the outcome of it. Business attires can be formal or informal, but at least, for men, wear dark coloured shirts and elegant business suit or dress for women.

By knowing how your new business environment interact, surely you won’t find trouble dealing with its people. That will make your image more desirable for Africans, especially to those who are involved to your business. Business will move in a smooth flow and profits will keep coming.

But you need to remember one point, South Africa is multicultural. When the 2010 FIFA World Cup event comes, you will need to work harder in establishing business relationship and communication style.