Early investors in Africa's ICT landscape burnt their fingers due to a lack of understanding about business on the continent.
So says Kelly Meredith, client services director at technology marketing agency McDonald Butler, who notes that Africa's massive growth potential hasn't gone unnoticed by companies around the world.
In many regions, says Meredith, thriving telecoms, technology, power, infrastructure and finance sectors are delivering exceptional growth for multinational investors. "In fact, 70% of the world's fastest-growing economies are in Africa. Naturally, scores of companies are looking to benefit from this growth. However, many early investors have also had their fingers burnt," she says.
Meredith urges companies venturing into Africa to gain insight about how businesses work on the continent, as this data is fundamental to success. "Firstly, based on your solution or product offering, geographic region and chosen industry focus, an overview of your target audience should be carefully considered and developed," Meredith explains.
"Getting in front of the right people at the right time makes any marketing campaign that much easier to run and obviously more successful, but in Africa, it's particularly important because, for most businesses, this is a new territory; the stakes are higher and engineering growth here is expensive."
Quality is always better than quantity when it comes to researching individuals and companies, she argues, adding that a dedicated build of targeted individuals and organisations will create a responsive database that organisations can use for a variety of different marketing activities. "This, in turn, allows for the creation of a community within which you can build and nurture relevant relationships through the buying cycle."
Because business in Africa depends heavily on relationships, organisations need to choose their partners wisely, Meredith says. "Strong relationships with reliable local partners are important, because local partners know the culture, environment and key players, and have the trust of the local market. Through local partners, business is faster to market."
According to Meredith, partners need to understand the target market, have a strong track record with repeat business and a solid foundation of experience in the solution area. "You must remember a partner is a direct reflection of your company and how the market perceives you do business; if they aren't up to scratch, it affects your brand and market penetration. However, ensuring you have all the boxes ticked above doesn't mean you will come out on top - partnering is just that, it takes two to tango, it has to be a win-win situation; if you don't give the support they require, they'll never be what you expect them to be. Basic really, but overlooked in so many cases."
Across Africa, Meredith adds, communication with clients and partners needs to be almost immediate. "Companies entering Africa need to be responsive - via all communication channels - and they must respond quickly." She notes that an increase in smartphone penetration and broadband coverage has made communication much easier.
"The old excuse of 'no signal' doesn't ring true in many cases; no electricity has necessitated solar charging and most businesses understand the importance of an Internet connection. In a nutshell, don't make any excuses for poor communication in Africa, there is always a way - successful businesses are those that use this challenge as an opportunity," she concludes.
"Building relationships that deliver business success in Africa takes careful planning and market research before any attempt should be made to penetrate an African market."
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