How to succeed in west africa webinar
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HOW TO SUCCEED IN WEST AFRICA? www.africabv.com WEBINAR:
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Transcript of How to succeed in west africa webinar
GUEST SPEAKER
Sonia Galat
Director Africa Business Venture
WWW.africabv.com
AGENDA
▪ Introduction
▪ Regional integration
▪ Success factors
INTRODUCTION
• Population: 340 million
• 18 countries
• GDP growth in 2016: 5%
• Challenges in 2015: 5%• Ebola outbreak• Oil price
• Growth driven by domestic demand
Source: Ecowas map, http://www.ecowrex.org/mapView/
Presentation of the region
Population: 340 million
REGIONAL INTEGRATIONPart I
What to know about ECOWAS?
• Economic Community of West African States
• Created in 1975. 15 members States
• Mauritania is not a member
• Trade union in order to create a single, large trading bloc through economic cooperation
• Institutions also include a Parliament, an Economic and Social Council and a Court of Justice.
ECOWAS
Source: Ecowas map, http://www.ecowrex.org/mapView/
REGIONAL INTEGRATION
Main exports
ECOWAS EXPORTS
Objectives• establishment of a free trade area between Europe and West Africa (ECOWAS +
Mauritania) • Boost exports to member states as well as to the rest of the world.
• Europe: 28% of ECOWAS exports with 23% for the European Union• Americas: 40 %of ECOWAS exports with 34 % for the Free Trade Association of North
America Trade• South-South trade: 16% of exports with AsiaMain exporters:- Nigeria: . Nigeria provides 77% of regional exports - Ivory Coast: 10% of regional exports- Ghana: 4% of regional exports- Senegal: 2% of regional exports
• The West African Economic and Monetary Union (UEMOA)
• West African Monetary Zone (WAMZ)
• Goal: creation of a monetary union with a single currency
UEMOA
WAMZ
Source: Ecowas map, http://www.ecowrex.org/mapView/
MONETARY INTEGRATION
Challenges and threats
Inadequate infrastructures
Fragmented nature of the region’s market
REGIONAL INTEGRATION
Duality and multiplicity of integration architecture
Including the private sector
REGIONAL CHAMPIONS
Nigeria• Population: 177.5 million• Faster growth than Brazil and Russia• Largest consumer market in Africa
Ghana• Population: 26.79 million• 2nd largest economy in West Africa• Ghanaian stock exchange created in 1991
Ivory Coast• Population: 22 million • Strong infrastructure• Focus on regional market (electricity export;
manufacturing goods)
Consumer market
Growing middle class Infrastructure
Common characteristics:
Source: World Bank, http://data.worldbank.org/, 2014
CONCLUSION PART I
▪ Several layers of regional integration
▪ A diversified region (laws; culture; language)
▪ Main entry points for companies: Nigeria; Ghana; Ivory Coast
▪ Main challenges:▪ Infrastructure development
▪ Regional integration not finalised
SUCCESS FACTORSPart II
UNDERSTANDING HOW TO EXPAND
• How do successful companies grow in Africa?
• Which pattern do they follow?
• What can we learn from them?
Single market
Regional expansion
Regional hub
WHY DO COMPANY FAIL?Effective preparation is key
EXECUTION
PLANNING
MARKET SIZE
PEOPLE
PARTNERSHIPS
PLANNING
COCA-COLA EXAMPLE
GE AND OTHER EXAMPLES
• Operations in every country
• Network of local distributors and entrepreneurs
• Regional hubs to support the operations
• Central structure
• Regional shared service centre
• Ecobank:• 3 IT hubs covering 30
different African markets
MARKET SIZEDiversify your portfolioto balance risk through multiple markets
Advantage in markets still at early stage of development
Reduce risk of political or economic instability
Provide sufficient scale
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PARTNERSHIPSCRITICAL FOR SUCCESS
RIGHT PARTNER
New market entry
Local knowledge
Navigating bureaucracy
PEOPLE
Recruitment, one of the biggest challenge
Resource
Skills retention
Expatriates
And diaspora
Main issuesMain issues Solutions
Skills development program
Internal mobility program
Recruitment agencies
Local partner
PROJECT EXECUTION
Qualities to succeed in West Africa?
Human factor is key
Networking
Patience
Flexibility
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• Sonia Galat
Email: [email protected]
www.africabv.com
Thank you very much for your attention!
https://www.facebook.com/Africa-Business-Venture-786556748052787/?ref=hl
@africabv.com
