ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

5 tips for business success in Africa

Updated on March 17, 2016

Tip #1: choose your location country according to your project

If you want your business venture to be successful, you'll need to take each country's specific conditions into account in relation to your project. Here are a few indicators you can use:

  • mobile telephone use: this is particularly developed in Nigeria, Kenya and South Africa;
  • internet penetration rate (Morocco, Egypt, South Africa);
  • transport budget, which reflects good purchasing power;
  • level of urbanization (Cairo, Lagos and Kinshasa);
  • household consumption, specific to each country;
  • significant purchasing power (Nigeria has the highest);
  • household expenses, showing the number of homes that could potentially purchase your products.

Tip #2: choose a sole proprietorship structure

You may be tempted to create a limited liability company for the added credibility it offers. Be careful however, this is a risky option because it requires a significant financial investment that you perhaps can't afford. To take Ivory Coast as an example, you'll need to pay almost €3,000 for your company to a have a legal existence. Whilst if you choose to create a sole proprietorship company in this country, you won't have much more than €100 at the most to pay.

Tip #3: consider African country-specific constraints

If you were formerly living as an expatriate and you return to Africa to start your business, think about the hurdles specific to different African countries which could slow your progress. Accordingly, bring good quality, second-hand IT equipment with you, because local prices in Africa are very high, the product range restricted, and equipment can be defective. Furthermore, in some countries like Ivory Coast, taxes on IT equipment are very high, something which could impact on the price of your products or services.

Tip #4: sublet an office in a company

You might not have thought about this point, but the cost of renting office space can put a severe strain on your budget if you don't take necessary action. Take advantage of the number of businesses which don't fully use their space, and sublet offices from one of these. Otherwise, you'll need to advance a five month deposit to rent directly. You're better off avoiding such expenditure and benefiting from being hosted in a sublet situation.

Tip #5: never enter into verbal agreements

As a budding entrepreneur, you might be tempted to enter into a business relationship or close a deal with a verbal agreement. Be careful, this can be a fatal error! Always keep a written record of the agreements you have made. Not only this will require your partners and collaborators to take their commitments seriously, but it will also encourage them to increase their productivity. Always refer to the Labor Law of the country in which you are located, and don't hesitate in appealing to the justice system when contractual commitments are not respected


Africa is a continent experiencing rapid economic development. Make sure the your business startup is successful by following these five reliable tips!

Comments

    0 of 8192 characters used
    Post Comment

    No comments yet.

    working

    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, hubpages.com uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at: https://hubpages.com/privacy-policy#gdpr

    Show Details
    Necessary
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the googleapis.com or gstatic.com domains, for performance and efficiency reasons. (Privacy Policy)
    Features
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Marketing
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Statistics
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)