There is an electric energy drawing one to embark on a journey to do business in Africa.
It is unique, challenging and complex with enormous potential and opportunities.
There is a pot of gold at the end of the African rainbow.
If your business desires to become a global player in key markets, then look no further than Africa, the second fastest growing continent in the world.
Customized strategies, cultivated relationships and market intelligence is required to expand business, position brands and develop innovative solutions to get the most out of the growing middle-class population in Africa.
Is your business ready to take territory in the dynamic high-growth African Continent?
“We strongly believe in this continent and are dedicated to building businesses like it’s part of our ‘Africa DNA.’ We are passionate about the people, culture and diverse prospects across various industries. We are realists and believe the time was yesterday for market entry, however, there is no time like the present to move in.”
Holger Vogt, MD AMENA AFRICA.
There is a great deal to research and learn in the process of growing your footprint in Africa. It is imperative to have strategic partners and relationships along with deep understandings of how to penetrate the market for profitability.
Let’s explore some insights and best practices to grow your business in Africa. We also review an inspiring entrepreneurial story from Nigeria that demonstrates real-life wisdom in boldly capitalizing a venture and fearlessly driving a vision that gives us foresight that anything is possible.
Best Practice Gems to Expanding your Business in Africa
Doing business in Africa is multi-faceted and multi-dimensional. Each of the 54 countries function differently in context of their culture, politics, environment and economic factors.
The groundwork begins with introductions to the right people relevant to your industry and establishing the who, what, why, how, and when for expansion plans.
Our AMENA AFRICA team has almost two decades of diverse, nurtured and trusted relationships to steer you forward quicker and with reliability.
Your business needs a strong mindset to commit long-term to tackle conflict, challenges, and the diverse pros and cons of entry to stay the course for business growth and benefits.
- Make the commitment to invest the time and resources for sustainable success.
- Be willing to pivot as and when required.
- Know thyself, know thy market.
- Establish relationships with strategic partners who work in the regions and gain the appropriate insights and data to make informed decisions for market entry.
- Research, research and more research from digital platforms to in-real life experiences, trial and error.
- Prepare for financial, operational and regulatory risks.
- Have a relationship strategy to connect with the right people who can be trusted.
- Treat each country as an independent business market – learn about the cultural differences, challenges and competitive advantages.
- Be encouraged by the presence of competitors.
- Work with local agencies and partners to create a robust sales and marketing strategy.
- Understand the dynamic of travelling and land infrastructure in each region.
- Knowledge of each region’s regulatory, legal and government compliance process and procedure is essential to start-up and maintain operations successfully.
- Consider how to navigate and set-up local and international talent acquisition and workforce management.
- Embrace and learn about the level of digital and technological capacity and capabilities that can be leveraged, as well as prepare for future digital advancements.
- Consistently learn and adapt to emerging local and regional trends and changes.
- Stay faithful to build and nurture multi-level relationships.
An Insightful Africa ‘Pot of Gold Rainbow’ Entrepreneurial Story
Nigeria’s first Craft Brewery – Bature Brewery
Kevin Conroy of Scottish descent landed in Nigeria on a work contract. In a short space of time, he followed the global trend of a booming craft beer industry, and inspirationally created a flavourful craft brewery concept, Bature Brewery, that showcases the country’s first craft beer, culture, vibrant music and fashion. And very cleverly incorporated these ideas into packaging and marketing content.
It started at a humble beginning of brewing from his Abuja apartment with co-founding partner, Irishman, James Turley. They grew the business from 50 bottles every 2 weeks in 2017 to 2000 bottles in a 200m² facility by 2018.
In 2023, Bature raised $2 million to increase production capacity to 50,000 litres per month to service 300 bars and build a capacity to hold 400 patrons in the popular Taproom housed next to the brewery.
Bature Brewery is currently in the process of further expansion and projects a revenue of $3 million at the end of 2024.
Highlights of Bature Brewery’s learnings, tenacity and creativity to draw investment, deal with challenges, grow the team, and captivate with smart marketing to start and expand their business in Africa.
- Innovatively used crowdfunding to raise $20 000 to add to their individual investment of $10 000 to start brewing beer.
- In 2019, they raised $500 000 via family and friends to expand the business.
- A creative Bature Brewery marketing video featuring local artists and influencers introduced the brand and launched the crowdfunding initiative.
- Bature Brewery challenged the status quo packaging from drinking beer in bottles to selling craft beer in draught taps and cans.
- Further contested the market to sell their craft beer at premium and it worked.
- Negotiated in the early days to by-pass the minimum order quantity of 300 000 bottles to small quantities to manage costs until demand grew.
- As fate would have it, locally born Nigerian, Bayo Ijasan, educated in brewing and distilling at Heriot-Watt University in Scotland joined them and became their head brewer.
- Building of a Taproom serving craft beer to locals and tourists next to the brewery increased revenue, as well created a local social scene of music and fashion to keeps the taps flowing.
- Personal relationships played a crucial role in doing business in Nigeria.
- Employing local talent changed the dynamic of production and roles to grow the business
- Challenges included:
- Bars lack of facilities to store beer and serve in kegs
- Access to raw materials
- Electricity issues
- Regulatory requirements made it difficult
- E-commerce is still in its infancy stage
- Improved supply chain, logistics and trust is needed
- Understanding the necessity for adequate funding and acting swiftly to acquire it was essential for speedy growth to capture the Nigerian market.
- Gaining knowledge of the infrastructure and supply chain is critical for business operations.
“It’s a difficult place to navigate politically, regulatory, and also commercially, and it’s usually personal relationships that find you the supplier or find you the solution that you need. Even with the move to do everything online, whether it’s taxes or business registration, you’ll still find that you have to go to the office just to get things across the line.”
Kevin Conroy – CEO of Bature Brewery
The Nigerian beer market is worth $6.5 billion per annum, and Bature Brewery’s modest goal is to get 1% of that, which equals a $65 million a year business. Now this is how a growing middle class population can impact a business in Africa.
54 Shades of Country Nuances in Africa
It should be of no alarm that the acquisition of insights and best practices will continuously evolve as more entrepreneurs and businesses participate in the African Region.
We reiterate that each country needs to be researched individually to obtain the necessary depth of knowledge for decision-making.
- Do local market research and education.
- Register your business and comply with all supporting documentation and processes to operate locally.
- Establish a physical presence and include local talent.
- Know the various African currencies from Nigeria, South Africa, to Kenya etc., and identify currency and exchange rate risks as this can impact investment value and cash flow.
In summary, go in with eyes wide open, exploring the positives and objections. Take the time to choose and work with the right partners and build the relationships as needed.
Persevere. It may be risky, but it is worth it. The gold at the of the rainbow awaits.
Doing business in Africa is an adventure
AMENA AFRICA lives and breathes business in Africa. There is an African-Style knack of how to do business on the continent.
Our service offerings and solutions are tailor-made to your business expansion goals and objectives.
Our knowledgeable and expert team invites you to open transparent conversations to penetrate the market and exploit opportunities.
What business products or services do you want to bring to Africa?
Which African market matches your products? We can help you expand your business in Africa to the next level.
Browse more content!
- All
- Africa Affairs
- Market Entry
- Market Research
- Payroll Service
Africa strategy: What to look out for and how to develop one
Navigating Nigeria’s automotive policy and the race to build a local EV and assembly ecosystem
The hidden cost of entering Africa without local market research
Entering African markets: Traditional market entry consulting vs. AI
