Tips for addressing Africa’s diversity

The continent of Africa is so vast that India, China and the US could fit within its borders, with room left over for several European nations. It comprises 54 nations with populations ranging from less than 1m to more than 160m, and hundreds of ethnic groups speaking more than 2,100 languages. 

Wealth differences are stark. Nearly three out of four people in Tunisia earn more than US$2,500 annually at PPP, a level reached by less than 1% of the population of Liberia. Compared with other emerging markets, Africa is still relatively undeveloped. Roads, ports and other infrastructure are often not up to grade. Suppliers of basic products and services may not exist or be able to deliver the desired quantity or quality.

The size, diversity, complexity and volatility of Africa raise challenging organisational and business-model questions for companies. They cannot simply import a structure and a way of doing business that work in other markets. They will need to both create and empower local organisations that are close to the market and create a regional structure that takes advantage of scale and provides consistency. In particular, companies need to do the following:

• Prioritise their African markets, focusing on those that offer the best combination of attractiveness and competitive advantage.
• Organise for many Africas by leveraging either hubs or regional clusters of countries.
• Adjust their business model when the realities of Africa require different approaches.

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Source: How we made it in Africa #IFAMAFRICA