Sub-Saharan Africa is the fastest-growing region in the world after Asia and the IMF has predicted that seven out of the 10 fastest-growing economies in the world will be African by 2025. These are Angola, Congo, Ethiopia, Ghana, Mozambique, Tanzania and Zambia. The potential for corporates that decide to do business there is obvious.
“IN ADDITION TO THEIR DEMOGRAPHIC ADVANTAGES, SUB-SAHARAN COUNTRIES ARE ALSO EXPORTERS OF PRIZED MINERALS NEEDED BY THE CONSTRUCTION, ENERGY GENERATION AND MANUFACTURING INDUSTRIES”
Choosing the right Logistics Service Providers to work with in sub-Saharan Africa can make a real difference to the ease with which companies do business in the region. They should look for a LSP that has a strong regional footprint, good domestic coverage and relationships with other local logistics providers in countries in which they do not have a presence. Due to the disparate nature of the African supply chain, it is difficult for one organization to be able to own the entire process and be able to deliver a satisfactory solution to the customer with owned assets. Therefore, we believe, that our strength lies in our own capabilities combined with our partnerships in the industry to ensure the most complete, secure, reliable and on-time supply chain management for our clients.
Sub-Saharan Africa is not necessarily an easy region for outsiders to do business in, it consists of 47 different countries, each with its own customs and legal systems, as well as differing banking practices, exchange controls, taxation regimes and levels of political stability.
TIPS FOR DOING BUSINESS IN SUB-SAHARAN AFRICA
- Work with advisers who have good regional and local knowledge. Choose a banking partner that has good domestic coverage and can provide you with visibility of local accounts and assist you with central bank reporting.
- Gain a deep understanding of the local political, economic and business environment of your chosen market.
- Explore the logistics in the region. Review and understand the entire supply chain in your sector and prepare for any likely red tape or bottlenecks. Make sure that you partner with a reputable service provider that can supply complete supply chain management.
REGIONAL FILE
- Population size in 2020: 1 136.5 million
- Geographical area: 23,587,900 sq km
- No of countries: 47
- % growth in 2022: 3.8%
- GDP in 2020: 1,661.93 billion U.S. dollars
- Urban population 2020 (% of total): 41.25%
- Life expectancy 2019: 61.63
- Largest city: Kinshasa, Democratic Republic of the Congo
- Languages: +1 000
(Source: World Bank)