deloitte on africa resource-seeker or market-seeker? · pdf filedeloitte on africa...

Deloitte on AfricaResource-seeker or market-seeker?

Are you a resource-seeker or a market-seeker? Two typologies and their implications for your Africa strategy…Africa is enjoying tremendous growth and is, currently and into the foreseeable future, the preferred investment destination for investors. A number of factors bode well for Africa as an investment destination: increased stability, reforms in terms of investment climate, a critical mass of consumers, a growing young population and burgeoning middle class, large deposits of minerals, arable land for agriculture, and a significant infrastructure deficit. While the opportunities are clear, what is less clear for many is firstly, how to enter and secondly, how to manage the lifecycle of their investments in their chosen African markets.

Foreign Direct Investment (FDI) theories suggest that companies fall into two broad categories: resource-seeking and market-seeking. Resource-seeking firms have different characteristics from market-seeking firms, and these differences, in turn, have an imapct on the market entry mode, the management of the investment during its lifecycle and even exit. This paper does not seek to provide definitive answers as to how companies should access and manage Africa opportunities but rather recognises and leverages the value of typologies. A typology is a useful and pragmatic tool for categorising and understanding the approach to be followed by organisations with similar traits and motivations.

Resource-seekers are those investors looking to establish access to raw materials or other input factors while market-seeking investments are geared towards serving the host market and would typically include retail – both food and clothing, Technology, Mobile and Telecommunications (TMT), entertainment and financial services. Also, in this category, by extension, would be construction firms that would typically follow the retailers in order to provide the necessary retail infrastructure. There is currently a hive of activity on the continent, with many construction firms building mixed-use developments and retail malls. Resource-seekers would typically be mining houses and Oil & Gas players accessing African markets for commodity exploration and extraction purposes. Below are some key traits – classified as differences and similarities between resource-seekers and market-seekers.

Is there a formula? And, does one size fit all? No, there is no formula. And no, one size doesn’t fit all. It all depends – are you a resource-seeker or a market-seeker?

2 Deloitte on Africa Collection: Issue 3

DifferencesMarket-seeker traits•Consumergoodsandservicesfocused•Volumeandmarketsizearepivotaltotheir

decision-making process. Numbers drive sales and induce economies of scale. On this basis, regional integration is critical for market-seekers.

•Unlimitedchoiceintermsofchoiceofmarketsto participate in. Market-seekers have a broader universe of options. As a starting point, any country is a potential market until it is qualified further.

•Vestedandstronginterestinpoliticalstability.Political stability strongly linked to perceptions of risk.

•Presenceinmarketisafunctionofhowwell the company interfaces with the customer base and competition.

Resource-seeker traits•Commodities/naturalresourcesfocused•Marketsizeandregionalintegration

are not key considerations. •Limitedchoiceintermsofmarkets.Resource-

seekers can only consider countries with resources.•Resource-seekersareknowntooperate

in unstable environments.•Presenceinmarketisafunctionofa

mine’s life and mineral availability.

Similarities•Bothhaveavestedinterestininfrastructurebut

for different reasons. Market-seekers require infrastructure to move products from the port of entry and distribute in-country. Because little beneficiation is taking place on the continent, resource-seekers typically need infrastructure only to move commodities from the mines to the ports to be shipped to their export markets.

•Bothhaveavestedinterestinsecurity of energy supply.

Deloitte on Africa Collection: Issue 3 3

The Deloitte lifecycle of investment into Africa shows that the entry into management of investments in any African market are an iterative process with a series of decision-making points. Usingthisframework,resource-seekersandmarket-seekerswillbecomparedandcontrastedin order to understand what their considerations are at different decision points.

Deloitte lifecycle of investment into Africa

Opportunity Assessment

Entry Strategy

Exit Strategy

Establish Local Operations

Rationale for expansion

Targetcountries

ManagingStakeholders

Pricing Growth Distribution

Human Capital

Production/Business Model

Yes

Yes

Yes

No

No

No

Viable?

Exit?

CountryAssessment

RegulatoryEnvironment

Local partnerships Entry?


Opportunity assessmentRationale for expansion The expansion of resource-seekers and market-seekers into Africa is motivated by different drivers. For market seekers, Africa is appealing from the perspective that there is a critical mass of consumers andmarketsize.Africacurrentlyhasapopulationof 1 billion people, which is set to increase to 2 billion by 2050. Furthermore, Africa has a rising middle class meaning that consumers increasingly have greater income to spend. A disproportionately young population guarantees a consumer base for years to come. Moreover, with most of the Western world facing economic challenges, Africa presents significant growth. It is anticipated that Africa’s current middle class of 313 million consumers will grow to 1.1 billion by 2060.

On the contrary, for resource-seekers, Africa’s attractiveness lies in the natural resources she is endowed with and most of which are still untapped. Africa produces more than 60 metal and mineral products and is a major producer of several of the world’s most important minerals and metals, including gold, diamonds, uranium, manganese, chromium, nickel, bauxite and cobalt. Africa hosts about 30% of the planet’s mineral reserves, including 40% of gold, 60% cobalt and 90% of the world’s platinum group metal (PGM) reserves.

Target countriesThe process by which market-seekers and resource-seekers filter and select countries to enter differs greatly. Market-seekers inherently have a broader universe of options. As a starting point, any African country with a population and consumers is a potential market until it is further qualified in terms of the companies’ business rules and preferences. Resource-seekers, on the other hand, can only consider those countries with specified resources that are aligned to their product focus.As market-seekers seek profit via volume and economiesofscale,countryandmarketsizeare

important considerations and, by implication, regional integration. A regional approach compensates forthose countries with small populations. The East African Community (EAC), the most progressive regional bloc on the continent, is promising free movement of goods and people when it fully goes online in 2014. In light of this development, the approach increasingly being adopted by market-seekers is to manufacture in one of the EAC countries and distribute across the region. With this approach, small countries like Rwanda and Burundi become attractive but only in this context of a regional approach. Rwanda’s trade with other EAC states rose considerably in the period between January and August 2012 as a result of the implementation of the regional common market protocol, which facilitates the free movement of goods and services across the region. Rwanda’s exports within the EAC increasedtoUS$75.7 millioninthisperiodupfromUS$50.7 millioninthesameperiodlastyear.

On the other hand, resource-seekers have limited options targeting only those African countries whose commodities’ profiles are aligned with their product focus. Traditionally, resource-seekers have pursued markets such as Nigeria, Angola and EquatorialGuineafortheiroil,theDRC,SouthAfrica,Botswana, Namibia and Angola for their diamonds, and Zambia for its copper. Guinea, alone, holds the world’s largest estimated reserves of bauxite at 7.2 billiontons.However,inlightofrecentoilandgas discoveries in Ghana and along the east coast ofAfricaandcoalinMozambique,countriessuchasMozambique,Kenya,UgandaandTanzaniaarefast becoming central in resource-seekers’ expansion strategies – this was not the case, even three years ago.SogreathasbeentheinterestthatUganda,for example, intends to offer mineral prospecting and production licences on competitive bidding rather than on first-come-first-served basis following a surge of investor interest. The point here is that resource-seekers’ choices are defined by nature.

Key considerations and implications for resource-seekers and market-seekers


10 - 20

MOROCCO

ALGERIA

TUN

ISIA

EGYPTLIBYA

NIGERIA

WES

TERN SA

HARA

MAURITANIACAPE VERDE ISLANDS

MALI

SENEGALGAMBIA

GUINEA-BISSAU GUINEA

SIERRA LEONE

LIBERIA

BURKINA FASO

NIGER

CHAD

SUDAN

CENTRAL AFRICAN REPUBLIC

ETHIOPIA

ERITREA

DJIBOUTI

SOMALIA

CAMEROON

GHANA

IVORYCOAST TO

GO BE

NIN

EQUATORIAL GUINEA

CABINDA

GABON

DEMOCRATICREPUBLIC OF

CONGO

ANGOLA

NAMIBIA

SOUTH AFRICA

BOTSWANA

ZAMBIA

ZIMBABWE

KENYA

TANZANIA

UGANDA

RWANDA

BURUNDI

MOZAMBIQUE

MA

LAW

I

LESOTHO

SWAZILAND

MAD

AGAS

CAR

CONG

O

BRAZ

AVIL

LE

1 - 10

20 - 50

SOUTHSUDAN

50 - 200

0 - 1

Projected Population for 2012 (millions)

Growth of sub-Saharan Africa is projected at 5.3% in 2012. It is anticipated to pick up to 5.6% in 2013.

Source:WorldBank


Country assessmentOther key considerations for determining the viability of entering a new market include the ease of doing business, political and social issues, country and business risks, language and culture barriers, legal, tax and compliance requirements, geographical proximity and logistics and existing infrastructure. Indeed, key considerations for resource-seekers are similar to those of market-seekers although one could conclude, on the basis of historical trends, that country or business risk is not as big a consideration for resource-seekers as it is for market-seekers. In fact, the inverse is largely true.

Most African countries with commodities have generally experienced conflict, and this has not deterred resource-seeking investments into territoriessuchasLiberiaandSierraLeone.Aplausible explanation for this is that resource-seekers only extract minerals in-country for production elsewhere while market-seekers, by definition, service the host country and are therefore entrenched in the local dynamics. GDP per capita and consumer spending are thus important factors for consideration for market-seekers, as these factorshaveabearingproduct/servicedemand.Onthe contrary, resource-seekers do not follow local dynamics but rather commodity prices on various international indices and other global dynamics.

Regulatory environmentThe African regulatory environment is challenging for a number of reasons for both market-seekers and resource-seekers. Firstly, there is sometimes the lack of policy clarity, which then heightens perceptions of risk.Secondisthelackofpolicycontinuity.Changesin government or even just cabinet reshuffles within the same government sometimes lead to changes in policy. This can be particularly disruptive in especially the commodities and extractive industry where investments in oil and gas and mining require a long-term outlook. Third is the lack of policy consistency. If, for example, a country has chosen to make it easy to do business, this should reflect in the time to register a new business, labour laws, the opening of a bank account, obtaining work and construction permits and so forth and requires a concerted effort across all government agencies. Policy consistency will come through in how the policy is executed, and this ultimately manifests through the investor’s experiences. There is sometimes a disconnect between the policy on paper and how it is experienced. Nonetheless, African countries continue to visibly improve their investment climates, indicating that policy is being implemented appropriately. World Bank statistics show that Morocco, Cape Verde,SierraLeoneandBurundiwereamongtheteneconomies in the world that most improved the ease of doing business in 2012, while Mauritius ranked first among African countries at No. 23 globally, followedbySouthAfricaatNo. 35,withChileatNo. 39, Rwanda at No. 45 and Tunisia at No. 46.


Local partnershipsThere are increasingly calls on the continent by African governments for the participation of local players in foreign market-seekers and resource-seekers’ deals. These calls are motivated by the need to avoid, in the case of extractive deals, the “recourse curse”. Core to this is the need to ensure that the benefits emanating from investment activity trickle down to local businesses and spread in communities. These policies,variouslyreferredtoas“LocalContent”inNigeria,GhanaandUganda,“BEE”inSouthAfricaand “Indigenisation” in Zimbabwe are sometimes viewed by investors as an unnecessary inconvenience. However,attheDeloitte2012AfricaRiskConference;focused on mitigating the risk of doing business on

the continent, investors implored their peers to change their mindsets and view these sets of legislation as an opportunity to bring on board local partners and tap into those partners’ institutional memories, savoir-faire and local networks. The importance of on-the-ground knowledge was emphasised as critical. Forging local partnerships in Africa is a practical and necessary thing to do whether or not legislation necessitates it. A strategy for successful partnering mustnotbeanafter-thought;rather,itmustbecentral to the broader country strategy. The viability of the opportunity should hinge on and be assessed on the basis of having identified a sound partner. That, in turn, rests on a rigorous due diligence process.


Entry strategyManaging stakeholdersWhile market-seekers need to manage local stakeholders and relationships, resource-seekers in Africa have a greater need to do so given that mineral extraction is a highly emotive issue on the world’s poorest continent. Moreover, given that minerals are exported elsewhere for beneficiation, mineral seekers are particularly susceptible to perceptions of exploitation. There is a renewed drive to ensure that mineral resources drive the economic development of the continent and, in light of this, there will be a greater need, going forward, for extractive companies to interact with and manage governments and communities as key stakeholders.

According to the Africa Progress Panel, “The ultimate goal is a transparent and accountable sector generating financial firepower that will enable countries that have previously lagged behind to accelerate rapidly toward the Millennium Development Goals.” Resource-seekers therefore need a more proactive and innovate multi-pronged stakeholder strategy that speaks to community issues while continuously engaging and complying with government. To illustrate how important this is becoming, in August 2012 there were calls for the Mozambiquegovernmenttorenegotiateallcontractssigned,followedbytheTanzaniangovernment’scalls for an audit of 26 Oil & Gas contracts to review production agreements with firms to ensure the countrygota“fairershare”inSeptember2012.

Human capitalAfrica’s population is disproportionally young, almost 200 million people are between the ages of 15 and 24, and by 2030 nearly one in four young people in the world will be African. Furthermore, there is a skills deficit on the continent. It is, therefore, important that both market-seekers and resource-seekers have a strategy in place for how they will develop local talent. It is not just the responsibility of governments to capacitate their people, but companies also have a social responsibility to assist with this massive challenge on the continent. In fact, it should not be a social responsibility – it should be core to the firm’s country strategy, as it determines sustainability and success in that market.

Deloitte has for years been running a Graduate Academy which gives university graduates exposure to the world of work and better prepares them for their careers in response to the observation that graduates are not necessarily work-ready. Companies need to scale up such an internship programme when operating on the continent. While market-seekers and resource-seekers may initially fill certain vacancies with expatriates, it is important that there are skills-transfer and up-skilling programmes in place. Given the calls to ensure that FDI benefits thelocalcitizenry,itisplausiblethatcompanieswillbecome increasingly under pressure to demonstrate their intentions and plans to empower their local workforce. Also, there is a “new class of professionals” of young Africans in the diaspora, who are global in their worldview and outlook, having worked on Wall StreetandintheCityinLondonandarereturningto Africa to settle. Companies with African growth aspirations need to tap into this human capital pool.


Production/business modelWith market-seekers, initial entry into various African markets is typically via a distribution model with a sales force in-country in order to minimise the risk of full exposure to the market. As a result, market-seekers can gauge the market before entering fully. Havingstatedthis,itisinterestingtonotethatmarket-seekers, even where they have determined that there is a viable market, continue with a distribution model. Most multinational players on the continent typically manufacture in a few hubs on the continent and distribute to their various African markets.Sometimesmanufacturingdoesnoteventake place on the continent but rather from Turkey and China where there is a cost comparative advantage. Lowcostofproductionandalargecustomerbaseremain the two key goals for market-seekers.

Market seekers are, however, not without their challenges and risks even with a “low risk” distribution model. Their challenge lies in moving consumer goods between borders on a regular basis: weekly and even dailywhereperishablegoodsareconcerned.Lengthydelays at African borders remain a key challenge to doing business across borders. Also, given the need to constantly manage supply cycles and replenish shelves, this becomes a challenge that is faced on a regular basis. In responding to this challenge, there is a discernible trend towards in-country sourcing. A reputablefoodretailerinSouthAfrica,ratherthanfreighting in supplies on a regular basis has changed its operating model to one that incorporates local players into its supply chain on the condition that they adhere to strict quality standards. This ensures that the local community benefits from the investment but also ensures that prices for consumers are not unnecessarily exhorbitant by having to freight products and pay customs duties. It would appear to be a win-win and sustainable situation for all parties concerned: the investor, the local company, the customer and the government in their empowerment objectives. It makes business sense all round!

Resource-seekers, on the other hand, tend to only extract on the continent and export commodities for manufacturing elsewhere. Many governments are developing strategies for domestic minerals so that the growth being realised from minerals is shared

and inclusive. Mineral beneficiation is a priority for governments of resource-rich countries that would like to leverage the potential of mineral beneficiation to create local employment and drive economic growth. The aim of a beneficiation strategy is to provide a framework to convert the country’s comparative advantage it has inherited, in the form of its mineral wealth, into a national competitive advantage.

Resource-seekers, however, do not like market-seekers, have the option of gauging the markets first, as they cannot avoid being physically present, from the start, in the local environment. They necessarily have to be in situ in all their chosen markets in order to extract resources. Thus, resource-seeking is capital intensive from the start, with the attendant risks arising from being heavily invested in particular countries. While, admittedly, entry into mining by the larger mining houses would usually be preceded by the junior mining houses that typically absorb some of the upfront risks and costs, the financial outlay still remains significant.


Establish local operationsPricingThe market for market-seekers consists of Africans in Africa. While there is a growing middle class, most Africans remain at the bottom of the pyramid, and there is a need to tailor products to meet local demand and preferences at the appropriate price levels. With resource-seekers, there is limited scope to manipulate market demand. Demand for commodities is driven by a range of macro-economic environmental factors.

GrowthMarket-seekers and resource-seekers will pursue growth differently. For market-seekers, a presence in the chosen markets and growth is a function of growingthecustomerbaseand/orfurtherpenetratingtheexistingcustomerbasethroughproduct/serviceinnovations and adaptations to local tastes so as to have a bigger share of the customer’s wallet. Thus, as the market grows, economies of scale can be achieved and profits enhanced. Adaptation requires research that is not only country-specific but also spending “a day in the life of….” consumers to understand how they view, interact with and use various branded products, what these brands represent in their lives and what the levers are for further market penetration. This implies that local knowledge and adaptation are two key differentiators – while of course still balancing this with costs and scale.

With mining and Oil & Gas, presence in the market is primarily a function of the life of the mine or oil bed. Growth is therefore necessarily achieved by acquiring new mines or oilfields as resources deplete. Economies of scales, despite a portfolio of commodity investments, can nonetheless still be achieved through, for example, shared services. The DeloitteMiningSharedServicesbusinesscanhelpresource-seekers operating on the continent realise significant cost savings. It is structured to achieve economies of scale, ensure cost efficiencies and meet delivery standards – while addressing local, onsite needs. Clients have a choice in terms of outsourcing, co-sourcing or retention of back-office activities based onthebusinesscase,businessrisksand/orimperatives.

DistributionThe African continent faces a significant infrastructure deficit. For resource-seekers wanting to move commodity products from the mines to the ports for export purposes, this used to be viewed as a constraint to doing business on the continent. However,therehasbeenashiftinmind-set,andthere is a clear trend of commodity players making investments into infrastructure for their own use. For investors moving onto the continent, it is important to bear in mind that such investments into adjacent sectors may be necessary, and the investment case needs to take such non-core costs into account.

Conversely, market-seekers are concerned with achieving as much coverage in their chosen markets and so, in-country infrastructure is important to them. Also important are channels of distribution that do not require brick-and-mortar infrastructure and add to costs in low-margin markets. This has been evident in the banking space where mobile technology and banking systems are fusing to bring banking to the masses while reducing the cost-to-serve. Current applications of mobile telephony in banking include innovations such as M-Pesa, the mobile money transfer serviceandM-Kesho,themicro-lendingmobileplatforminKenya.InyetanotherexamplefromKenya,farmers interact proactively with commodity exchanges and track prices with their phones so that they can make informed decisions about the right time to take their produce to market. In the future, we should expect to see more examples in other areas such as health, retailing, insurance and education. Africa has leapfrogged in this aspect, and new entrants need to think outside the box–beyond brick and mortar.


Exit strategyShouldtheneedarisetoexit,intheeventofconflict,for example, market-seekers with only a manufacturing and distribution model have a relatively quick exit. Resource-seekers are more at risk, given the amount

of capital invested. Also, given that negotiations for mining rights would have been negotiated by a previous government, in countries where there are poor institutional frameworks and rule of law, it may be difficult to ensure continuity of operations.

Summary table

Decision-making stage

Market-seekers Resource seekers

Opportunity assessment

Rationale for Africa expansion

•Market-driven •Resource-driven

Target countries •Unlimitedscope.Smallcountries’orsmall markets can be compensated for by regional integration

•Limitedscope.Onlythosecountrieswith certain commodities’

Country assessment •Easeofdoingbusiness•Politicalandsocialissues•Countryandbusinessrisks•Languageandculturebarriers•Legal,regulatory,taxand

compliance requirements•Geographicalproximityandlogistics•Existinginfrastructure

•Similartomarket-seekers,butresource-seekers are sensitive to political instability

Regulatory environment •Challengeoflackofpolicyclarity,lack of policy continuity and lack of policy consistency

•Similartomarket-seekers

Localpartners •Greatneedforlocalpartners •Similartomarket-seekers

Entry strategy

Managing stakeholders •Needtomanagerelevantstakeholders

•Greaterneedthanmarketseekers– for a broader and more proactive stakeholder engagement strategy that includes communities and governments, given the sensitivity of extracting resources

Due diligence •Rigourousduediligencenecessary •Similartomarketseekers

HumanCapital •Needaplanforskillstransferand up-skilling on the job

•Needaprogrammeforassisting graduates get ready for the world of work

•Needaplanforskillstransferand up-skilling on the job

•Needaprogrammeforassisting graduates get ready for the world of work

Business model •Distributionmodelinitiallytherefore limited risk

•Challengeofmovinggoods across borders

•In situ from the start therefore greater exposure

•Challengesofmovinggoodsfrom the mines to the ports


Decision-making stage

Market-seekers Resource seekers

Establish local operations

Production •Onthecontinentinselectedhubs or in countries with cost comparative advantage

•Beneficiationpredominantlydoesnottake place on the African continent

Pricing •PricinggearedtomeetGDP/capitaand socio-economics of local market

•Pricingdeterminedbyglobal dynamics and global commodity indices

Growth •Presenceinthechosenmarketsand growth is a function of growing the customer base and/orfurtherpenetratingtheexisting customer base

•Product/serviceinnovationsand adaptations to local tastes so as to have a bigger share of the customer’s wallet

•Economiesofscale

•Growthisachievedbyacquiringnewmines or oilfields as resources deplete

•Standardisationandprocessefficiency are key and innovations such as shared services in mining can help achieve this

Distribution •Mobiletelephonyapplicationskey to distributing at low cost-to-serve to a wide customer base

•Physicalinfrastructurestillcore for product delivery

•Mayneedtoinvestininfrastructureto move product from mine to ports

Exit

Exit strategy •Byvirtueofdistributionmodel,low-risk exit strategy

•Byvirtueofhighupfrontinvestmentsand sunk costs, high-risk exit strategy


Conclusion:We draw the following conclusions: •Market-seekersdifferfromresource-seekers

in how they do business in Africa. •DoingbusinessinAfricaasamarket-seekerdoes

not differ significantly from doing business in other emerging/frontiermarketsasamarket-seeker.

•DoingbusinessinAfricaasaresource-seekerissimilartodoingbusinessinotheremerging/frontier markets as a resource-seeker.

From a process perspective, there is an equal need for thoroughness in terms of market entry: due diligence, country assessment, competitor analysis and so forth. To illustrate, a market-seeker looking to enter the 1 billion Indian market would need to understand the legislative and market differences in India’s 26 regions before deciding which provinces to enter and how to sequence the entry in the same way they would approach Africa’s 1 billion market spread over 54 countries before selecting countries to enter. Admittedly, the number of countries in Africa makes the task seemingly more daunting, but the process is the same.

In our view, the real challenge in accessing market or resource opportunities in Africa relates to understanding the softer issues: understanding the local dynamics, the people, their mentality, their work ethic, the culture, how to get things done, who to speak to and so forth. And this EQ, we contend, is best acquired through a local partner who, of course, must be thoroughly vetted first. In addition to EQ, there is the challenge of a lack of physical infrastructure, but with mind-sets shifting, this is not even deterring investors. And we are witnessing resource-seekers building their own railroads, roads and ports. Given Africa’s lucrative returns, this is small change...

Resource-seeker or market-seeker: investment opportunities abound in Africa.


References

• AnnanK,MomentumRisestoLiftAfrica’sResourceCurse,14September2012,NewYorkTimesOp-Ed

• BiryabaremaE,Ugandaplanscompetitivebiddingformininglicences,1October2012, Reuters

• KabeeraE,RwandaSeesGrowthinRegionalTrade,2October2012,TheNewTimes

• Kamndaya,STanzania:Plannedreviewofoildealsrocksinvestors,19September2012

• Mozambique:FormerPMCallsforRenegotiationofContractsAllAfrica.com,27August2012

Contacts

Anushuya Gounden Partner:HeadofAfricaDesk E-mail:[email protected]

Taki Nkhumeleni Manager: Africa Desk E-mail: [email protected]

ForanyAfricarelatedinformation,[email protected]

Acknowledgment for contribution by Dr Jacqueline Chimhanzi, alumnus of Deloitte

DeloittereferstooneormoreofDeloitteToucheTohmatsuLimited,aUKprivatecompanylimited by guarantee, and its network of member firms, each of which is a legally separate andindependententity.Pleaseseewww.deloitte.com/aboutforadetaileddescriptionofthelegalstructureofDeloitteToucheTohmatsuLimitedanditsmemberfirms.

“Deloitte” is the brand under which tens of thousands of dedicated professionals in independent firms throughout the world collaborate to provide audit, consulting, financial advisory, risk management, and taxservicestoselectedclients.ThesefirmsaremembersofDeloitteToucheTohmatsuLimited(DTTL),aUKprivate company limited by guarantee. Each member firm provides services in a particular geographic area and is subject to the laws and professional regulations of the particular country or countries in which it operates.DTTLdoesnotitselfprovideservicestoclients.DTTLandeachDTTLmemberfirmareseparateanddistinctlegalentities,whichcannotobligateeachother.DTTLandeachDTTLmemberfirmareliableonlyfortheirownactsoromissionsandnotthoseofeachother.EachDTTLmemberfirmisstructureddifferentlyin accordance with national laws, regulations, customary practice, and other factors, and may secure the provisionofprofessionalservicesinitsterritorythroughsubsidiaries,affiliates,and/orotherentities.

©2012Deloitte&Touche.Allrightsreserved.MemberofDeloitteToucheTohmatsuLimited

DesignedandproducedbyCreativeServicesatDeloitte,Johannesburg.(804807/dbn)

deloitte on africa resource-seeker or market-seeker? · pdf filedeloitte on africa...

Documents