CENTRAL UNIVERSITY COLLEGE GRADUATE SCHOOL OF BUSINESS CHRIST TEMPLE

NAME:

GRACE PREMPEH

NUMBER:

GSB/HRM/09/018

SUBJECT:

CROSS-CULTURAL MANAGEMENT

LECTURER:

REV. PAA EKOW QUAYE

SESSION:

EVENING

ASSIGNMENT:

DOING BUSINESS IN AFRICA NOT FOR FAINT-HEARTED

DATE:

11TH APRIL, 2011

DOING BUSINESS IN AFRICA NOT FOR FAINT-HEARTED The article, Doing business in Africa not for faint-hearted was published in the Ghanaian Times on 15th March, 2011. Africa is often seen as a high-risk place to do business, but the continent is increasingly becoming a hospitable destination for investors. According to BBC World Service Africa editor Martin Plaut, there are various challenges facing the continent's entrepreneurs. Africa's wars, coups and famines are constantly in the news - the image of starving children is what often comes to mind every time the continent is mentioned. But what about the men and women who are starting businesses, and risking their own money to build Africa's economies? Despite all the obstacles, growth rates across much of Africa are rising and there are successful ventures to be found everywhere from Modadishu to Dakar. The challenges of doing business in diverse environment, for this matter Africa are tough and numerous. These vary from country to country coupled with cultural diversity and economic climate. The general object of every business is to survive, make profit and have competitive urge over similar business (product or service). However, the ability to take off, survive and become a market leader calls for strength and adoption of good strategic decisions. In fact, the challenge associated with survival of business idea is crucial. According to Bill Egbe, President of The Coca-Cola Companys South African unit, although most companies are starting to realise that it is possible to generate good returns on investment in Africa, people sometimes still get blinded by the challenges. I always say that those challenges are part of our reality. We dont moan about them, we dont complain about them. We take [the challenges] into account as we design our business models. Africans survive on this continent despite those challenges. There are fine ways to cope with those challenges. Businesses need to have a mindset that says: Well build a business model that takes into account these challenges and build a system [to overcome the challenges], he says. Further, some of the challenges a businessman is likely to encounter in doing business in Africa includes - cultural differences, bureaucracy, skilled workforce, government laws and regulations, political crisis, economic down turn. For instance, in the Democratic Republic of Congo, registering a business takes 155 days, while enforcing a contract in Angola involves 47 procedures and takes over 1,000 days. To conclude it is no doubt that, one need to be tough in all undertakings to be able to do business in Africa; if you are feeble, your ideas and business will die a natural death, you indeed need to be strong and courageous.

Reference

BBC world News Monday, 13 November 2006, 10:36 GMT

Bill Egbe, president of The Coca-Cola Companys South African unit