how to succeed in west africa webinar
TRANSCRIPT
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GUEST SPEAKER
Sonia Galat
Director Africa Business Venture
WWW.africabv.com
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AGENDA
▪ Introduction
▪ Regional integration
▪ Success factors
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INTRODUCTION
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• Population: 340 million
• 18 countries
• GDP growth in 2016: 5%
• Challenges in 2015: 5%• Ebola outbreak• Oil price
• Growth driven by domestic demand
Source: Ecowas map, http://www.ecowrex.org/mapView/
Presentation of the region
Population: 340 million
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REGIONAL INTEGRATIONPart I
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What to know about ECOWAS?
• Economic Community of West African States
• Created in 1975. 15 members States
• Mauritania is not a member
• Trade union in order to create a single, large trading bloc through economic cooperation
• Institutions also include a Parliament, an Economic and Social Council and a Court of Justice.
ECOWAS
Source: Ecowas map, http://www.ecowrex.org/mapView/
REGIONAL INTEGRATION
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Main exports
ECOWAS EXPORTS
Objectives• establishment of a free trade area between Europe and West Africa (ECOWAS +
Mauritania) • Boost exports to member states as well as to the rest of the world.
• Europe: 28% of ECOWAS exports with 23% for the European Union• Americas: 40 %of ECOWAS exports with 34 % for the Free Trade Association of North
America Trade• South-South trade: 16% of exports with AsiaMain exporters:- Nigeria: . Nigeria provides 77% of regional exports - Ivory Coast: 10% of regional exports- Ghana: 4% of regional exports- Senegal: 2% of regional exports
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• The West African Economic and Monetary Union (UEMOA)
• West African Monetary Zone (WAMZ)
• Goal: creation of a monetary union with a single currency
UEMOA
WAMZ
Source: Ecowas map, http://www.ecowrex.org/mapView/
MONETARY INTEGRATION
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Challenges and threats
Inadequate infrastructures
Fragmented nature of the region’s market
REGIONAL INTEGRATION
Duality and multiplicity of integration architecture
Including the private sector
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REGIONAL CHAMPIONS
Nigeria• Population: 177.5 million• Faster growth than Brazil and Russia• Largest consumer market in Africa
Ghana• Population: 26.79 million• 2nd largest economy in West Africa• Ghanaian stock exchange created in 1991
Ivory Coast• Population: 22 million • Strong infrastructure• Focus on regional market (electricity export;
manufacturing goods)
Consumer market
Growing middle class Infrastructure
Common characteristics:
Source: World Bank, http://data.worldbank.org/, 2014
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CONCLUSION PART I
▪ Several layers of regional integration
▪ A diversified region (laws; culture; language)
▪ Main entry points for companies: Nigeria; Ghana; Ivory Coast
▪ Main challenges:▪ Infrastructure development
▪ Regional integration not finalised
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SUCCESS FACTORSPart II
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UNDERSTANDING HOW TO EXPAND
• How do successful companies grow in Africa?
• Which pattern do they follow?
• What can we learn from them?
Single market
Regional expansion
Regional hub
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WHY DO COMPANY FAIL?Effective preparation is key
EXECUTION
PLANNING
MARKET SIZE
PEOPLE
PARTNERSHIPS
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PLANNING
COCA-COLA EXAMPLE
GE AND OTHER EXAMPLES
• Operations in every country
• Network of local distributors and entrepreneurs
• Regional hubs to support the operations
• Central structure
• Regional shared service centre
• Ecobank:• 3 IT hubs covering 30
different African markets
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MARKET SIZEDiversify your portfolioto balance risk through multiple markets
Advantage in markets still at early stage of development
Reduce risk of political or economic instability
Provide sufficient scale
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PARTNERSHIPSCRITICAL FOR SUCCESS
RIGHT PARTNER
New market entry
Local knowledge
Navigating bureaucracy
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PEOPLE
Recruitment, one of the biggest challenge
Resource
Skills retention
Expatriates
And diaspora
Main issuesMain issues Solutions
Skills development program
Internal mobility program
Recruitment agencies
Local partner
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PROJECT EXECUTION
Qualities to succeed in West Africa?
Human factor is key
Networking
Patience
Flexibility
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21
• Sonia Galat
Email: [email protected]
www.africabv.com
Thank you very much for your attention!
https://www.facebook.com/Africa-Business-Venture-786556748052787/?ref=hl
@africabv.com