Entrepreneurial Opporunities for Europeans in Africa?

IrishExpat

Good afternoon,

This is more of a curiosity thread, as I'm more than happy to start and run a business within Europe.

A conversation came up recently on the opportunities for a European entrepreneur in Africa. Not focusing on any one country in particular.

From a brief search online, the private security sector is booming (apparently) in Cameroon, but it's difficult to get a fix on other sectors (facts, figures, not anecdotal).

There are the ease of doing business indexes and gov. statistics, but where would you look for deeper information?

Does anyone have any experience or even second-hand info on any European, or even Irish entrepreneurs becoming established on this continent, in recent times?

I know it's an open ended question - but just to get the ball rolling.

micosoft

Africa is a vast continent so no answer will cover the myriad of countries, economies, cultures etc. Neither is Africa for the faint hearted. From a business perspective the rule of law is barely enforced (unless you happen to be on the wrong side of it). Most Europeans in Africa either work in the INGO trade or extractive industry, in both cases with large western organisations backing them, so not entrepreneurial. Or they are "consultants" working off the above two because they have significant in-country experience.

I guess I'd ask... what makes you think that a startup business in Africa would be better/easier then here where you have rule of law, massive EU market, govt supports, functioning banking system, unimaginable wealth, language, knowledge. Most Africans are dying (literally) to get over here. And don't imagine that just because you are European that somehow you are smarter/more educated then the Africans. Many are very entrepreneurial - just the market ain't there.

The only white entrepreneurs I've seen are hard bitten South Africans who know the continent. Security is big everywhere in Africa but the fact you are asking about the above means you don't have the knowledge to get into a very dangerous game.

Start with SA. There is a Ireland/SA business association http://www.isaba.org/ - contact them.

Check out EI and join linked in groups like this http://www.linkedin.com/groups/Irish-Business-Network-Uganda-4812762/about

delthedriver

Your question has grabbed by attention and perhaps my imagination.

My personal opinnion of Africa is that the place is a snake pit with corrupt Governments and political unrest about to get out of control.

Whyever would you consider Africa VS. Europe or emerging markets in India , The Far East, or South America in particular Brazil which is one of the fastest growing economies in the world.

As a rule of thumb, I look at Kerry Group, who operate in Europe, North and South America,Canada, Far East, Australia, New Zealand.

They do not operate in Africa.

I just feel if a very successful company like Kerry Group have made progress in overseas markets, they have done their homework, before committing themselves to huge overseas investment. They may well have paved the way for Irish entrepreurs in these markets also.

Having met a number South Africans who have moved to Europe over the last few tears, I don't think many plan on returning.:)

dienbienphu

private security is a dirty business to be involved in especially when it involves the third world. take a look at this video

https://www.youtube.com/watch?v=rswbjECsuFA

micosoft

delthedriver wrote: »

Your question has grabbed by attention and perhaps my imagination.

My personal opinnion of Africa is that the place is a snake pit with corrupt Governments and political unrest about to get out of control.

Whyever would you consider Africa VS. Europe or emerging markets in India , The Far East, or South America in particular Brazil which is one of the fastest growing economies in the world.

As a rule of thumb, I look at Kerry Group, who operate in Europe, North and South America,Canada, Far East, Australia, New Zealand.

They do not operate in Africa.

I just feel if a very successful company like Kerry Group have made progress in overseas markets, they have done their homework, before committing themselves to huge overseas investment. They may well have paved the way for Irish entrepreneurship in these markets also.

Having met a number South Africans who have moved to Europe over the last few tears, I don't think many plan on returning.:)

It is an interesting question and Ireland has not focused on Africa as much as it should. We do have a long relationship with the continent as well. As I travel through it you can see such a mixture of positive and negative.

People look at metrics like "X African country has a growth rate of 20% per annum compared to awful Ireland which is at .5%. Wowser! Must be so much money to be made there. But the GDP PP is $41,700 here compared to $3,300 in Ghana (a prosperous and stable state by sub Saharan standards). What do you think people will spend money on? And no, life is cheaper there - consumer goods and food costs much the same everywhere.

Kerry focus (like most Irish firms) on a premium product. Although they do sell to Africa, it's at the top end of the market and not mass-market (I do stand to be corrected). Africans can only afford cheap non-premium goods and services and we are not competitive in that market. China, India, Brazil are better placed.

In any case I am taking this question as not an established European Company but some lad arriving with a suitcase thinking - what can I do here. Don't get me wrong, there are opportunities in Africa... but you need to bring something to the table and know the continent and countries which I can't see with the OP. It's a very tough business climate compared to Ireland. And I will tell you this - Africa is looking east, not north.

delthedriver

micosoft wrote: »

It is an interesting question and Ireland has not focused on Africa as much as it should. We do have a long relationship with the continent as well. As I travel through it you can see such a mixture of positive and negative.

People look at metrics like "X African country has a growth rate of 20% per annum compared to awful Ireland which is at .5%. Wowser! Must be so much money to be made there. But the GDP PP is $41,700 here compared to $3,300 in Ghana (a prosperous and stable state by sub Saharan standards). What do you think people will spend money on? And no, life is cheaper there - consumer goods and food costs much the same everywhere.

Kerry focus (like most Irish firms) on a premium product. Although they do sell to Africa, it's at the top end of the market and not mass-market (I do stand to be corrected). Africans can only afford cheap non-premium goods and services and we are not competitive in that market. China, India, Brazil are better placed.

In any case I am taking this question as not an established European Company but some lad arriving with a suitcase thinking - what can I do here. Don't get me wrong, there are opportunities in Africa... but you need to bring something to the table and know the continent and countries which I can't see with the OP. It's a very tough business climate compared to Ireland. And I will tell you this - Africa is looking east, not north.

Justa small point on Kerry Group, yes they sell to Africa, but have not established operations there.:)

Ballyv24

delthedriver wrote: »

As a rule of thumb, I look at Kerry Group, who operate in Europe, North and South America,Canada, Far East, Australia, New Zealand.

They do not operate in Africa.

I just feel if a very successful company like Kerry Group have made progress in overseas markets, they have done their homework, before committing themselves to huge overseas investment. They may well have paved the way for Irish entrepreurs in these markets also.

I do not know if Glanbia and Kerry Group are part of the same company or not. But I do know that Glanbia have set up in Africa and are doing very well there.

I know this because I was at a Glanbia presentation recently and I was surprised that they had setup in Africa. (Old Article)

I don't remember the figures, but the presenter did say that they are doing well in Africa and that if you look at Africa over a long period of time, you can see steady growth.