The African continent has for many years attracted interest and investment from all over the world. With its raw materials ranging from gold, oil, copper, diamonds to its natural resources and agriculture the continent has for decades continued to be a goldmine for international investments. When it comes to setting up a business in Africa it is imperative to be aware of the changing factors that influence how business is conducted ranging from government policy, culture, languages, technology and innovation.

Growth of internet usage

The internet has continued to be used broadly on the African continent with an estimated 170+ million people using the internet to communicate, browse and shop. Many African nations are adapting to the rise in internet demand with Nigeria alone being the most prominent achieving nearly 50% of Africa’s internet usage according to Internet World Stats. This figure is likely to continue to rise as more and more technology is being invested with corporations such as Google planning to increase internet coverage in the region. ‘oAfrica’ states that the rate of “annual household Internet access growth stands at 27%”. This is clearly a positive motivator for people looking to set up business in the retail sector and marketing sector amongst many. This also opens doors for running e-businesses as the internet reach continues to grow. Some may argue that gone are the days of setting up a market store as an investment and more sophisticated business ideas such as estate agents are taking shape and taking advantage of the wider potential customer reach which can be achieved.

Increased ‘middle class’ population

Despite the flooding news stories covering corruption and poverty which seem to dominate African headlines internationally, there is an increasing growth of a so called ‘African middle class’ society. Some sources have described this as the fastest growing middle class in the world. With this comes many benefits for businesses to specifically target this group. With businesses more prominent in the west selling luxurious goods or providing services more targeted to middle class people this is a great opportunity to take their ventures to a global audience in particular Africa. Although it can be argued that it is not yet a big enough market to target it certainly is looking to be in the near future. For example in some affluent districts in Africa where prices of houses can match that of western countries.

Government regulations and politics

Although corruption is a huge debatable factor in many African countries as an African I have seen a much more positive approach to politics affecting Africans. The number of African academics is increasing with many acquiring oversees education and returning to their mother countries with a different mind-set and some western influence on politics which has generated positive debates about the futures of corruption.

In order to be successful in African countries your business idea must be transparent and for a cause. It must be clear as to how your business will benefit your region and society be it creating employment or for a more social cause. Being successful in Africa includes being in tune with government operations and regulations, languages and cultures. When you do so governments are more likely to back your ideas which makes it easier to set up and grow your business.

One thing to understand is that Africa is a huge continent and each country differs and should be carefully researched before deciding to start doing business. Africa is its own market and money alone should not be the utmost factor of investment in Africa. Good innovative ideas will continue to make huge impacts on the people and the continent as a whole and such businesses are likely to experience positive growth in the coming years.