In a new report, consulting firm Accenture says that all firms looking to expand into Africa face a number of critical decisions on entering the market.
Africa is not a homogeneous market with considerable diversity between the various countries. “A single pan-African strategy will likely fall short,” says the report.
Accenture outlined four focused actions that companies looking to do business in the continent should consider.
1. Scan the landscape: Appoint a dedicated Africa team to evaluate the relative attractiveness of the various markets and sectors in Africa. The unique skills and competitive advantages the company could bring to the markets it chooses enter must also be identified.
2. Establish beachheads: Invest in a small stake in local companies as a base from which to seize future opportunities.
3. Create local models: Develop products and solutions that are focused on meeting the needs of the local market.
4. Build ecosystems: Seek out and establish partnerships, alliances and networks to help develop the local community and to support the chosen strategy going forward.