Africa Is the Land of Business Opportunity--Big Idea 2015:

 

Africa dominates the headlines. Much of the news is grim including Ebola, HIV, corruption, starvation, poverty, and war. Africa is vast, complicated and full of issues. So, "Why?" you might ask, would Africa be my topic for LinkedIn's Big Idea series. Simply put: because Africa is so promising.

When I first saw this slide at the Consumer Goods Technology Emerging Markets conference, I gasped. I had no idea that the land mass of Africa could equal the sum of the land mass of the United States, India and Europe combined. Africa is much larger than most of my colleagues realize.

In the words of the U.S. Chamber of Commerce at the CGT conference, Africa is a market where Passion, Perseverance and Persistence pays off. If not, their recommendation is for companies to move to plan B. Since I find it hard to accept defeat and move to plan B, I interviewed my new friend Leila Bouamatou in my Doctorate of Business Administration (DBA) class at Temple to gain a better perspective. Leila works with women-owned businesses in Africa. Here are some of my insights from the interview:

1) Focus on micro-markets. Africa is a land of ever-changing dynamics. The lack of capital limits growth, and there is a great need for renewable resources. There are 53 countries and six major regions. When considering Africa as a new market, many of the lessons learned in India can be applied. It is a land where colony meets tribe, and religious factions reign. Last-mile delivery must be redefined as 80 percent of the businesses are informal (think small shops by the side of the road).

2) Power of women. Leila quickly reminded me that 33 percent of businesses are owned by women. We quickly brainstormed the lessons learned in India on enlisting the women to sell door-to-door, the quick adoption of new business models, and the need to redefine the package size to make items more affordable.

3) Quick adoption of new business models. While we talk about the adoption of new business models, and the collaborative economy in the United States, when I was in Nigeria, it was not talk: it was all about action. Farmers shared equipment, mobile payments were the norm, and collaborative sharing was well-accepted. One of the limitations to growing new business in Africa is adapting to the pace of change.

Leila's focus is on improving health, education, empowerment, and sanitation in women-owned businesses. It sounds to me like this is a good place for us all to start. Only by focusing on meeting basic needs can we grow commerce.

As growth slows, more and more Western global multinational companies are looking to expand into Africa. They want to build new products for a vast market with many inherent problems. I think that this is a big idea, but I also think that we need to enlist the aid of the Leilas of the world to do it right. What do you think?