You better not ask what is the difference between being attractive for business and business environment. According to the global outsourcing and consulting giant, Accenture, they are different. Nigeria is better in business environment – lesser regulation while we are not attractive perhaps due to low purchasing power and high competition in the domain of the financial services. South Africa leads the pack in both ways. This is how Accenture saw it in a new report.
Meanwhile, Accenture has some good suggestions on how to enter African markets. They recognize the diversity of culture and different market conditions across the continent.
All companies interested in expanding in Africa—not just those in financial services—face several key decisions on how to approach the market. The diversity and complexity of individual country markets mean that a single pan-African strategy will likely fall short. Instead, organizations should consider a set of four focused actions.
1. Scan the landscape. Create a dedicated Africa task force to identify and understand the relative attractiveness of different markets and sectors, and the specialist skills and competitive advantages the company can bring to those it chooses to enter.
2. Establish beachheads. Take small positions in local institutions as a base from which to seize emerging growth opportunities.
3. Develop local models. Design, build and operate models that reflect, and are focused on meeting, specific local market needs.
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.