Is 2021 a Good Time to Expand Your Business to Africa?
Africa is set to be the next big market globally, expecting a 3.4 % boom in GDP in 2021. In simple words, Africa is in transition, and it’s an excellent time to bring your business here.
In the past, foreign investors solely focused on extracting natural resources from the poorest continent in the world. But the momentum has now taken a sharp U-turn. Many foreign businesses are now looking at Africa from a fresh set of eyes, focusing on its human resource and growth potential.
Nevertheless, the path is riddled with many roadblocks, thanks to being an underdeveloped continent for as long as memory lane takes us. Unfortunately, Covid-19 has hit the African continent too, and lockdowns have made dealings more stressful. But there is a hustle in the African youth, and they are determined to break free.
So, let’s explore a few tools that will help you develop a roadmap for a successful venture in the lucrative land of the Nile River, post-Covid-19 in 2021.
Tools for a Successful Business Venture in Africa
Africa’s potential for growth is still undermined and misunderstood. That is why it may come as a surprise to you that the building blocks for achieving significant success in Africa are already in place. African people are benefiting, and so can you if you bring your investments here. Are the stakes high? Yes, they are. But so are the profits. Here are the two most important lessons that will make your journey less intimidating and more rewarding.
African Translation Services
You will be surprised to know that Africa is home to around one-third of the world’s languages. However, out of the many African languages, only 75 of them are most widely used. But that’s quite an obstacle when it comes to communicating with the local population.
Therefore, before you bring your business to the African subcontinent, you will need help to translate African languages. Hiring a reputed African translation agency is the answer to victory in the African trade. Here is why we think so.
Better Consumer Response
Consider this scenario: will you be more likely to buy a product with information in your language or one that features an entirely foreign language?
According to Common Sense Advisory research, titled “Can’t Read, Won’t Buy”, 40 % of consumers said they would never buy a product if the information were not in their local language. Moreover, 65% said they prefer content in their language, while 73% said they only read product reviews in their native language.
There is a common misconception that the global market prefers English as a primary language, especially regarding technical products. This research bursts the myth, clarifying that you will lose 40% of your business if you don’t approach customers in their comfort zone.
Repeat Purchases
If your customer services are offered in the local language, customer loyalty is better. When users find themselves at ease with your representatives, they are more likely to stick around and form a deeper connection.
Can You Do the Translations Yourself?
This brings us to the following question: Can’t you translate content yourself? Unfortunately, no. While it may be easy to translate English to many other languages used in Europe or the Far East, many African languages are restricted. For instance, some technical terms don’t have a direct translation.
Thus, the key to penetrating the local market is to find reputable African translation services. They offer skilled translators who translate African languages accurately and access the latest translation technologies, helping overcome linguistic diversity.
Localisation
P&G has increased its African business tenfold in the past decade. But has it achieved the unachievable by using the same business model all over the world?
The answer is no. Localisation or tailoring the offer according to local needs and preferences, will prevent you from packing your bags too soon.
Instead, it would be best if you aimed to develop a business model that takes into account how the local population thinks. Keep an eye on their cultural sensitivities and economic limitations. Moreover, embrace their way of life and develop a model that brings your business close to their wants.
In the meantime, your business objectives should be set in stone. Then, work around your goals and form a game plan to benefit all stakeholders. Here are a few localisation tools:
Stay Up to Date with Government Regulations
Launching your business in a foreign land necessitates a positive interaction with local regulatory authorities. While Africa is not ranked highly for good governance and corruption is more common, you must prepare yourselves for potential problems. Again, the sooner you accept the circumstances, the sooner you can mould your business model.
Build Relationships with Other Businesses
You can’t survive alone, and therefore it’s vital to build your presence with the local business community. Form a cordial relationship with your suppliers, partners, competitors, and regional networks to gain acceptance.
Respect Cultural Sensitivity
With a place as diverse as Africa, you ought to be prepared to do some homework. First, recognise their social struggles and respect their past. Moreover, know about their religious beliefs, ethnic groups, economic and political struggles.
Tweak your Sales Model
The African market reacts better to “consultative sales” or relationship-based selling. A traditional sales model focuses on the product, while the relationship-based selling model focuses on the customer.
In other words, if you invest all your energy into the relentless advertisement of your product, you will completely overlook the pain points of the target market. Always begin your marketing by directing questions to your target market, involve them in the process, and understand their goals and requirements. Then offer a solution that showcases the edge you have over competitors.
Being at the right place with the right tools is what a business needs to be successful. In fact, at present, over 400 companies in Africa have crossed the billion-dollar annual revenue mark and are progressing faster than similar businesses in other continents.
Africa is undoubtedly full of success stories and unlocked potential. Use proper tools and resources like African translation services to overcome the blind spot and make your mark in the untapped goldmine.
