Feature Article
African Invest: A Guide to Investing in the African Market
by Michael Temitope
Where there is passion and desire, there will always be new horizons. Passion and desire are two qualities that are definitely not lacking among Malaysian investors and entrepreneurs.
These are the major factors that have contributed to making Kuala Lumpur and Kuching two of the world’s primary outsourcing cities This article is meant to introduce and guide Malaysian investors and businessmen on investing and making profit in Africa. The African market is not exactly new to foreign outfits especially Malaysian companies After all, the Nigerian president, Retired General Olusegun Obasanjo himself signed and awarded a multimillion dollar contract to a Malaysian company (name withheld) to create chip embedded passports for the 136 million people of Nigeria.
Also in the three years, the Nigerian telecommunication industry comprised of several private players which was to later include vodaphone pulled off profits to the tune of millions of dollars. This booming and emerging market is not peculiar to Nigeria alone as similar events are taking place in Kenya, Libya, Ghana, South Africa and other places.
What has led to this sudden market boom in Africa? Well, one of the key reasons is the increase in spending power of the average African worker. You might find it hard to believe that professionals are better paid in Nigeria than Malaysia but that is the exact situation of things. Another obvious reason is the fact that the governments of African countries are opening their doors to more investors. Laws are being passed to invite foreign businesses. A final reason is that the populace is now more educated and exposed and therefore craves the best products they can lay their hands on.
What products would move in Nigeria? Virtually any product of genuine quality. A firm in Shanghai has built and continues to build empires from manufacturing and selling HB pencils in Nigeria for the past decade.
A WORD OF CAUTION.
Entrepreneurs who want to explore the African market should keep in mind that genuine products will sell themselves many times over. It would be pointless to spend a lot of money on adverts when the product quality is not very good. Business moves in Africa more through word of mouth and testimonies. People do not believe all they see on T.V. Another point entrepreneurs should bear in mind is summed up by the world’s best salesman, Zig Ziglar, “You can get anything you want in life if you can help others get what they want”. Businesses built on strong relationships of trust and transparency last longer. Without the relationships, all you are is a gold digger and you will not succeed.
I’d like to drop my pen here as you realize I cannot tell you all about the African market in this article alone. For further information, you can contact the Nigerian consulate or the African Voice. You can also contact me through email (temietope@yahoo.com). See you at the top!