Doing Business with AFRICAApril 12, 2016

Sabina Zunguze CEO, Beautiful Options USA (dba A Gift To Africa) VP, Organization of Women in International TradePast President, African Chamber of Commerce of

Utah

Presentation to Tampa Women

Business Centre

AFRICAComprises 54 countries on the mainland Africa including 8 island countries Madagascar, The Comoros, Seychelles, Mauritius, and Reunion in the Indian Ocean, and Cape Verde, Sao Tome, Principe, and St. Helena in the Atlantic Ocean)

Why Sub-Sahara Africa?• 2012 , eight of the twenty fastest growing economies in the

world were in sub-Saharan Africa according to the IMF..

•  (AGOA), a trade preference program that provides duty-free entry into the United States for almost all African products, has helped expand and diversify African exports to the United States, while at the same time fostering an improved business environment in many African countries through eligibility requirements. 

• President’s June 2013 visit to SSA to expand its collaboration with regional economic communities in Africa, EAC and increase EAC exports to the United States by 40%.

Why Sub-Sahara Africa?

• In 2012, Exports to SSA from US totaled $22.5 billion and Imports totaled $49.6 billion.• The top U.S. export markets in sub-Saharan

Africa for 2012 were: South Africa ($7.6 billion), Nigeria ($5.0 billion), Angola ($1.5 billion), Ghana ($1.3 billion), and Ethiopia ($1.3 billion). Machinery, Vehicles, Aircraft, Mineral Fuel and Cereals.

• Top US Imports from Nigeria, Angola, South Africa and Gabon. Crude Oil, Precious Stones, Vehicles, Cocoa and Ores

Doing Business in Africa• Understand the areas of need and high profit.

For Start-Ups : Don’t Come without being Informed

• Educate yourself about Africa from sources other than the Discovery Channel. Consult with the Chamber of  Commerce, the Embassy, or traders in the country of your interest. Get information about your business interest from Chambers of Commerce or  business consultants. Educate Yourself

• Develop a sound business and marketing strategy. Understand their environment, tailor your product to the environment Don’t Communicate the Wrong Attitude

• Identify reliable business partners in Africa either by yourself or through the  Chamber of Commerce or the relevant Embassies. Don’t Get Trapped in the Web of Brokers and Connections

DOING BUSINESS IN AFRICA

• Visit the location if you intend to establish a company or

an outlet. Don’t Expect to Do Business in Africa and Not Be There.

• Follow up on every arrangement to make sure that conditions and terms are  fully understood and are being implemented.

• Arm yourself with a lot of patience and keep an open mind because  communication and correspondence from Africa may not flow as smoothly or as fast as you may expect.

• Understand the cultural environment of the African country in which you  intend to do business. Don’t Go It Alone

DOING BUSINESS IN AFRICA

• Use a consultant, especially those that have a real understanding of Africa.   Be mindful of the three Ps of African business: Pensiveness,Patience,nd  Perseverance. Pensiveness demands the use of common sense. Success  demands a lot of patience. Above all, you must persevere and be persistent  but polite.• Lucrative as it may be, the African market is

not without pitfalls. Keep your  guard up and insist on cash transactions as far as possible. • Establish direct contacts with your business

counterparts in Africa

DOING BUSINESS IN AFRICADOING BUSINESS IN AFRICA

WOMEN DOING BUSINESS IN AFRICA

Gender Inequalities that may affect you:• Personal security, the performance of

the judiciary, and the time and cost required to register, license, and operate a business• For the most part the regulatory

environment may be “gender-neutral” in principle but with possibly gender-differentiated outcomes in practice

SECURITY• Political The key is to keep

abreast of current situation in countries where events e.g. elections can have a significant bearing on the security situation.• Legal: The executive must

negotiate a swathe of challenges, from start-up regulations to ambiguous tax payments. • Personal: Cumbersome logistics,

poor infrastructure, abundant red tape, a shortage of skilled workers

Useful Resources

• LinkedIn: • Africa – All Things Business• Africa Gateway• Africa Import Export Business• Different country Chambers of Commerce• Regional groups: SADC, COMESA, ECOWAS, etc..

• Africa Chamber of Commerce of Utah• US Commercial Service• GOED, WTC..

Thank You..