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If you’re a foreign company looking to grow or expand, the African market would be a desirable destination. The African market is vast, with up to 53 countries; hence it can be a challenging task, but once you’re able to locate the right business partners that are both efficient and reliable, you’re halfway through.
Since the African market is promising and has so many untapped potentials, it is essential to know that there are pitfalls. Most foreign companies have ventured into the African market and failed severely; well, this failure is induced by their inability to do their due diligence. It is also essential to learn from the success stories and failures of others. It is only wise that you know one or two things about what you’re getting into before you do.
Foreign direct investments over five years had its inflows rising from $19.5 billion to a whopping $26.1 Billion. These results are quite impressive but do not eliminate the fact that an expansion to the African market is a complicated step for foreign companies to take on and see-through.
What makes expansion to the African market a complicated decision for international companies?It’s simple, the fact that they are moving away from their comfort zone into something they are not quite used to.
Before you enter the African market, you might want to consider a few things like operational Risk and others, here are seven effective ways to help you explore the African market and get positive results.