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AVI Consulting proudly presents you “ Doing business in West Africa” By Philippe Bakahoukoutela. Tips of doing business in West Africa Familiarise yourself with the peoples , the country, the politics and the social culture Familiarise yourself with the business culture - PowerPoint PPT Presentation
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AVI Consulting proudly AVI Consulting proudly
presents presents
you you
“ “ Doing business in West Africa”Doing business in West Africa”
ByBy
Philippe BakahoukoutelaPhilippe Bakahoukoutela
Tips of doing business in West AfricaTips of doing business in West Africa
Familiarise yourself with the peoples , the country, the Familiarise yourself with the peoples , the country, the politics andpolitics and thethe socialsocial cultureculture Familiarise yourself with the business cultureFamiliarise yourself with the business culture Be knowledgeable about the countries infrastructureBe knowledgeable about the countries infrastructure Familiarise yourself with the Financial systemsFamiliarise yourself with the Financial systems Know who your partners are/isKnow who your partners are/is Be aware of the local competition Be aware of the local competition Be aware of your target marketBe aware of your target market Know where to find your labourKnow where to find your labour Be aware of safety and corruption mattersBe aware of safety and corruption matters Build relationship with local communities & authorities Build relationship with local communities & authorities through your CSI through your CSI
FIRST STOP FIRST STOP
“ “Doing business in Nigeria”Doing business in Nigeria”
“ “Bawu ni”Bawu ni”
Familiarise yourself with the peoples, the Familiarise yourself with the peoples, the country politics and the social culturecountry politics and the social culture
Nigerian world faster growing populationsNigerian world faster growing populations
( ( 128,771,988 with 250 ethnic group mostly Hausa and 128,771,988 with 250 ethnic group mostly Hausa and Yoruba Igbo (Ibo)Yoruba Igbo (Ibo)
Religion in Nigeria include mostly Christian ( Majority) Religion in Nigeria include mostly Christian ( Majority) and Muslimand Muslim
Daily temperature above 33 CDaily temperature above 33 C
Very warm and hospitable peoplesVery warm and hospitable peoples
Very entertaining through cinema, club, sportVery entertaining through cinema, club, sport
Fashion lovers Fashion lovers
Good alcohol consumer ( soft, wine, etc…)Good alcohol consumer ( soft, wine, etc…)
Generally stable, peaceful and united countriesGenerally stable, peaceful and united countries
Business CultureBusiness Culture
business is conducted very informally and in a traditional business is conducted very informally and in a traditional fashion but professionallyfashion but professionally
very strict forward but yet effective approach of dealingvery strict forward but yet effective approach of dealing
Meeting take place until late in the eveningMeeting take place until late in the evening
Time factor or punctualityTime factor or punctuality
Business are open from 8:00-17:00Business are open from 8:00-17:00
Dress code in meeting both formal and traditionalDress code in meeting both formal and traditional
Be knowledgeable about the countries Be knowledgeable about the countries infrastructureinfrastructure
Transport:Transport: Roads, maritime and aviation are most Roads, maritime and aviation are most effective ways transport but road remains more effective ways transport but road remains more economical and safety is of less concern. Principal alter economical and safety is of less concern. Principal alter linking major city and countries are fairly paved.linking major city and countries are fairly paved.
Energy :Energy : electricity supply guaranties dispute shortage in electricity supply guaranties dispute shortage in same part of the country same part of the country
Communication: Communication: Telephones - mobile cellular: 9,950,000 Telephones - mobile cellular: 9,950,000
subscriber most effective way of communication subscriber most effective way of communication
Familiarise yourself with the Nigerian Familiarise yourself with the Nigerian Financial systemsFinancial systemsBanks:Banks: regulated. regulated.
Trading currency: Naira & US $ & PoundsTrading currency: Naira & US $ & Pounds
Access to finance guarantied at concurrential rate ( 15% over 5 years)Access to finance guarantied at concurrential rate ( 15% over 5 years)
Money transfer out of the country authorise but not exciding 50 Million Money transfer out of the country authorise but not exciding 50 Million US $).US $).
Fiscal policy: Fiscal policy: number of taxes legislations but foreign companies get number of taxes legislations but foreign companies get incentive that enable them to save over US $ Millions yearly and are incentive that enable them to save over US $ Millions yearly and are taxable just like any Nigerian company.taxable just like any Nigerian company.
Know who your partners are/isKnow who your partners are/is
Nigerian Investment Promotion AgencyNigerian Investment Promotion Agency ( NIPA) ( NIPA)
Chamber of Commerce and IndustriesChamber of Commerce and Industries
Conduct due diligences before entering into a partnership Conduct due diligences before entering into a partnership with any business organisation/partnerwith any business organisation/partner
Be aware of your target Be aware of your target marketmarket
Only over 35 % of the total Only over 35 % of the total population dispose of income population dispose of income throughout the countries 55 throughout the countries 55 millions peoples( active millions peoples( active population)population)
Employees from private Employees from private companies 20% (estimate)companies 20% (estimate)
Employees from Government and Employees from Government and others stated owned institutions others stated owned institutions 15% (estimate)15% (estimate)
Income earners
EmployeesPrivate
EmployeesPublic
Be aware of the local Be aware of the local competition competition
Premier BreweriesPremier Breweries
Total consumers 7 Millions( est. 2007
)
Market share15%
Product
Depot of distribution throughout the country
250
Consumer typesConsumer types
Upper class: wine, whiskey Upper class: wine, whiskey 15%15%
Middle class: Heineken, Middle class: Heineken, Amstel, golden max 20%Amstel, golden max 20%
Lower class: Lower class: Stars( adventurous, outgoing Stars( adventurous, outgoing peoples) 51%peoples) 51%
Lower
Middle
Upper
Labour MarketLabour Market
Labour force: 55.67 millionLabour force: 55.67 million
Nigerian one of most educated nation on the continentNigerian one of most educated nation on the continent
Cheap and skilled labour Cheap and skilled labour
Minimum remuneration $ 70-00; skilled over $ 5 000-00Minimum remuneration $ 70-00; skilled over $ 5 000-00
Be aware of labour movement attitudeBe aware of labour movement attitude
Recruitment done through: NIPA, stated department, Recruitment done through: NIPA, stated department, professional bobies, directly with companies, advert professional bobies, directly with companies, advert through newspapers,through newspapers,
Be aware of safety and corruption mattersBe aware of safety and corruption matters
Safety: Safety: There are no go in Nigeria due strong believe related There are no go in Nigeria due strong believe related customs & religions( Mainly in Niger delta, Kanu state)customs & religions( Mainly in Niger delta, Kanu state)
Corruption:Corruption:
THURSDAY, SEPTEMBER 27, 2007THURSDAY, SEPTEMBER 27, 2007 Nigeria Now 32nd Most Corrupt, Says Transparency Nigeria Now 32nd Most Corrupt, Says Transparency
International Offshore financing aids official looting Survey International Offshore financing aids official looting Survey reveals By Abimbola Akosilereveals By Abimbola Akosile ( source) ( source)
Don’t institutionalised corruption within your business Don’t institutionalised corruption within your business conduct in Nigeriaconduct in Nigeria
Report act of corruptionReport act of corruption
Corruption trendsCorruption trends
(Source transparency(Source transparency
International report)International report)
0
5
10
15
20
25
30
35
40
45
2006 2007 2008
Year
Ranks
Build relationship with local communities Build relationship with local communities & authorities through your CSI& authorities through your CSI
Very important to have sound relationship local Very important to have sound relationship local community & traditional leaderscommunity & traditional leaders
Have influences local authorities ( government, securities Have influences local authorities ( government, securities forces,ect…)forces,ect…)
Give back to local community through uplifment Give back to local community through uplifment programme in the field of sport or educationprogramme in the field of sport or education
SECOND STOPSECOND STOP
“ “ Doing business in DRC”Doing business in DRC”
Mbote na bisoMbote na biso
Familiarise yourself with the peoples , Familiarise yourself with the peoples , the country, politics and the social the country, politics and the social cultureculture Population of over Population of over 58,784,400 (estimated58,784,400 (estimated))
French dominant and official language followed by French dominant and official language followed by lingala lingala Dominantly Christian nation Dominantly Christian nation Daily temperature above 24 CDaily temperature above 24 C
Very hospitable & Fun loving ( most popular musician in Very hospitable & Fun loving ( most popular musician in the region are DRC)the region are DRC)
Fashion lovers ( men & women)Fashion lovers ( men & women)
Recovering from 6 year conflict but relatively stableRecovering from 6 year conflict but relatively stable
Familiarise yourself with the Familiarise yourself with the business culturebusiness culture
Business is conducted from Monday- Friday (08:00-Business is conducted from Monday- Friday (08:00-17:00)17:00)
Business meeting only take place until 17:00 pmBusiness meeting only take place until 17:00 pm
Dominantly formal business dress codeDominantly formal business dress code
Men and women are both very accessible and open to Men and women are both very accessible and open to ideasideas
women’s still play a secondary role in businesswomen’s still play a secondary role in business
Business environment Business environment
"The Government of the DRC has committed itself to "The Government of the DRC has committed itself to creating an environment conducive to private-sector led creating an environment conducive to private-sector led growth, as evidenced by the forthcoming democratic growth, as evidenced by the forthcoming democratic elections, the promulgation of the new mining code, and elections, the promulgation of the new mining code, and the establishment of macro-economic stability leading to the establishment of macro-economic stability leading to the renewal of economic growth. We believe the the renewal of economic growth. We believe the implementation of the EITI will provide further evidence implementation of the EITI will provide further evidence to the international business community that the DRC is to the international business community that the DRC is open for business.“open for business.“
Source: Source: http://www.redorbit.com/news/science/219645/adastrahttp://www.redorbit.com/news/science/219645/adastra
Be knowledgeable about the country Be knowledgeable about the country infrastructureinfrastructure
Telephones mobile most suitable mode of communication Telephones mobile most suitable mode of communication with over 6.592 million (2007)with over 6.592 million (2007)
Maritime & aviation are the most recommendatedMaritime & aviation are the most recommendated
Electricity supply not a concern despite lack of adequate Electricity supply not a concern despite lack of adequate supply in other part of the countrysupply in other part of the country
Familiarise yourself with the DRC Familiarise yourself with the DRC Financial systemsFinancial systems
Bank well regulated , loans access guarantied for Bank well regulated , loans access guarantied for foreign companies at least 12% ; transfer of funds foreign companies at least 12% ; transfer of funds requires no limits.requires no limits.
friendly fiscal policy toward foreign investorfriendly fiscal policy toward foreign investor
Know who your partners are/isKnow who your partners are/is
ANAPI ( Agence Nationale de Promotion des ANAPI ( Agence Nationale de Promotion des Investissements)Investissements)
Patronat CongolaisPatronat Congolais
Confederation des entreprises du CongoConfederation des entreprises du Congo
Be aware of the local competition Be aware of the local competition
5 Breweries throughout the country:5 Breweries throughout the country:
SIMBA; UNIBRA ; Societe des brasseries de Kinshasa;SIMBA; UNIBRA ; Societe des brasseries de Kinshasa;
Brasserie du Kasai; BralimaBrasserie du Kasai; Bralima
Locations: Kinshasa; Lubumbashi, Kasai.Locations: Kinshasa; Lubumbashi, Kasai.
Be aware of your Be aware of your target markettarget market
Only 28 % of the total Only 28 % of the total population are working each a population are working each a stable income (est. 2007)stable income (est. 2007)
Close to 50% of the active Close to 50% of the active pop are in informal economy pop are in informal economy
10 % in the formal economy : 10 % in the formal economy : own business, entrepreneursown business, entrepreneurs
Income earners
Informal sector
Formal Sector
Know where to find your labourKnow where to find your labour
Department of labour in DRCDepartment of labour in DRC
Through ANAPIThrough ANAPI
Keep close to you labour movementKeep close to you labour movement
Through advert in the newspapers; directly with Through advert in the newspapers; directly with companies.companies.
Be aware of safety and corruption Be aware of safety and corruption mattersmatters
Safety Capital City improved since 2003Safety Capital City improved since 2003
Avoid going to province of the east for more safetyAvoid going to province of the east for more safety
According to Transparency International, DRC has the According to Transparency International, DRC has the eighth highest level of corruption in the world.eighth highest level of corruption in the world.
“ “ A head of department makes less than €2 a day. A head of department makes less than €2 a day. Remote forest service staffs are left without equipment, Remote forest service staffs are left without equipment, with no access to a car and out of contact with the with no access to a car and out of contact with the distant capital Kinshasa “distant capital Kinshasa “
(http://www.greenpeace.org/international/campaigns/forests/africa/(http://www.greenpeace.org/international/campaigns/forests/africa/problem)problem)
Rather built relationshipRather built relationship
Build relationship with local communities & Build relationship with local communities & authorities through your CSIauthorities through your CSI
build relationships with local authorities , community & build relationships with local authorities , community & traditional leaders ;traditional leaders ;
Support local uplifment programme whether in education or Support local uplifment programme whether in education or sport;sport;
Respect the culture within your area of operation.Respect the culture within your area of operation.
THIRD AND LAST STOPTHIRD AND LAST STOP
“ “ Doing business in Ghana”Doing business in Ghana”
““Akwaba”Akwaba”
Familiarise yourself with the peoples , the Familiarise yourself with the peoples , the country , politics and the social culturecountry , politics and the social culture
Population of Population of 23,832,49523,832,495
Official language spoken English followed by AsanteOfficial language spoken English followed by Asante
Daily temperatures above 33 CDaily temperatures above 33 C
Majority of population Christian followed by MuslimMajority of population Christian followed by Muslim
Very traditional but yet moderateVery traditional but yet moderate
trusted and hospitable peoplestrusted and hospitable peoples
Fun and sport lovers (soccer); keep abreast with politics Fun and sport lovers (soccer); keep abreast with politics locally through your embassy but relatively stablelocally through your embassy but relatively stable
Familiarise yourself with the Familiarise yourself with the business culturebusiness culture
Business hour are from 08:00 till 17:00Business hour are from 08:00 till 17:00
Meeting are conducted formally with a traditional element in Meeting are conducted formally with a traditional element in itit
Business code is both formal and traditionnalBusiness code is both formal and traditionnal
Most business peoples are sport lovers especially soccerMost business peoples are sport lovers especially soccer
Womens still linking behind on second position in businessWomens still linking behind on second position in business
Be knowledgeable about the countries Be knowledgeable about the countries infrastructureinfrastructure
Telephones - mobile cellular:7.604 million (2007)Telephones - mobile cellular:7.604 million (2007)
Radios:12.5 million listenersRadios:12.5 million listeners
Televisions:1.9 millions viewersTelevisions:1.9 millions viewers
internet users: less than 1 Millionsinternet users: less than 1 Millions
Electricity – supply less of concernElectricity – supply less of concern
Roadways: totalRoadways: total:: 62,221 km 62,221 km
Airport advisable for transportation purposesAirport advisable for transportation purposes
Familiarise yourself with Ghana Financial Familiarise yourself with Ghana Financial systemssystems
Ghana has a well-developed banking systemGhana has a well-developed banking system
In addition, cedi depreciation had raised the banks external In addition, cedi depreciation had raised the banks external liabilitiesliabilities Trading currency: Cedis; Pounds; US $Trading currency: Cedis; Pounds; US $
Access to finance guarantiedAccess to finance guarantied
Money transfer done at no limitMoney transfer done at no limit
Corruption and safetyCorruption and safety
In Transparency International's 2008 Corruption Perceptions In Transparency International's 2008 Corruption Perceptions Index, Ghana is ranked 67th out of 180 nations, and Index, Ghana is ranked 67th out of 180 nations, and receives a score of 3.9 out of 10.0. ...receives a score of 3.9 out of 10.0. ...
Relatively peaceful countryRelatively peaceful country
Cities accessible from all cornersCities accessible from all corners
Local CompetitionLocal Competition
Companies: Companies: Guinness Ghana Breweries Ltd; Ghana Guinness Ghana Breweries Ltd; Ghana Breweries Ltd; Accra Breweries LtdBreweries Ltd; Accra Breweries Ltd
Location:Location: Accra, Kumasi Accra, Kumasi
Distribution stores: Distribution stores: 100 Throughout the countries100 Throughout the countries
Market share ( est.)Market share ( est.)
AB: 20%; GB:12%; AB: 20%; GB:12%; GGB: 8%GGB: 8%
AccraBreweries
GhanaBreweries
Guiness GhanaBreweries
Consumer typesConsumer types
Upper: Wines, whiskeyUpper: Wines, whiskey
Middle: Amstel, GuinnessMiddle: Amstel, Guinness
Lower: Stars( adventurous ; outgoing peoples)Lower: Stars( adventurous ; outgoing peoples)
Target MarketTarget Market
Over 38 % of the working force is are income earnersOver 38 % of the working force is are income earners
Self employed from informal sector constitue over 20 % of the Self employed from informal sector constitue over 20 % of the total population ( est. 2007)total population ( est. 2007)
LabourLabour
Abondant ;skilled ; cheap; accessible through Government; Abondant ;skilled ; cheap; accessible through Government; Chamber; union federation and newspapers aids.Chamber; union federation and newspapers aids.
Have sound relationship with labour federationHave sound relationship with labour federation
Workforce trendWorkforce trend
65 % of total population is 65 % of total population is economically active (est.)economically active (est.)
20% employed20% employed
40% unemployed40% unemployed
Total activepop
Employed
Unemployed
Local partnersLocal partners
Ghanaian Investment Promotion AgencyGhanaian Investment Promotion Agency
Ghanaian Chamber of Commerce and IndustryGhanaian Chamber of Commerce and Industry
Professionals BodiesProfessionals Bodies