Doing Business in Africa: A Strategic Guide for Entrepreneurs

By Marjolein Lem, <link people/rob-van-tulder/ _blank>Rob van Tulder</link> and Kim Geleynse

Doing business in Africa – a strategic guide for entrepreneurs is a joint production from consultancy firm Berenschot plus the Partnerships Resource Centre (PrC) at Erasmus University and the Netherlands African Business Council. 

The book offers managers a number of practical tools to assess risks realistically, and to overcome obvious barriers of doing business effectively in Africa. The continent is, according to the authors, becoming an increasingly ‘normal’ region in which to do business.

In the words of one of the authors, Professor Rob van Tulder, the book brings together ‘business practice, academia and policy for the first time to present a broad perspective on Dutch entrepreneurship in Africa. Van Tulder heads the PrC at Erasmus University, and is also a professor of international business-society management. The book continues where others stop, he says, not only pointing to macroeconomic opportunities and challenges, but showing how to actually do business and reap a sustainable competitive advantage in Africa.

More than 2,000 Dutch firms are engaged in business in sub-Saharan Africa. The majority is involved in imports and exports. Their strategies require relatively little investments and allow for quick withdrawals if circumstances require. This approach was well-suited to the days of great political and economic instability that have characterised many African countries for many years, but it is becoming increasingly less appropriate to the Africa of today: an emerging continent with booming business opportunities.

This book argues that what is needed is innovation and partnerships with governments and NGOs in the strategies of Dutch firms. This will enable them to seize chances, contribute to development and obtain a sustainable competitive position in Africa. The book describes a novel approach to internationalisation, in which firms manage a large variety of distance dimensions at the same time, while taking three different types of risks into account: operational, strategic and sustainability.

This publication makes use of the first systematic survey of a representative sample of large and small Dutch firms operating in sub-Sahara Africa. This sample is used to delineate business models that show the greatest promise in creating a sustainable competitive advantage in Africa. Proposed concepts and models are illustrated with a number of in-depth case studies of firms active in Africa, which are the result of regular conversations with the industry, with experts and with the embassies of the Netherlands in the region. The main focus of the book has been on sub-Saharan Africa – the part of Africa located below the Islamic north, consisting of 49 highly heterogeneous countries, including six islands.

Endorsements

‘For too long the debate about the opportunities and the challenges of doing business in Africa has suffered from an appalling lack of sophistication and depth. This excellent book, with its detailed accounts and references, really does justice to the scale of the opportunities in Africa, as well as the complexity of doing business here. It is an encouraging sign that Africa is at last being taken seriously’.
– Frank Braeken, Executive Vice President Africa Region, Unilever

 ‘The ‘Strategic guide’ is very useful for reflecting with my team on what we are doing and how we plan to go forward. It resonates well with our own thinking and will inspire more appetite and buy-in of our management for our accelerated growth strategy in Africa. Philips has been in Africa for over 100 years. I encourage other Dutch companies to take the step to enter this market’.
– Juan van Dongen, Chief Executive Officer for Africa at Philips

‘This long-awaited book is an important contribution to a much needed debate about the perception of the African continent for Dutch businesses. Entrepreneurs, policymakers and politicians need to read this book if their intentions are to translate into good results for Dutch businesses.’

– Bernard Wientjes, President of the Confederation of Netherlands' Industry and Employers VNO–NCW

‘This is a good book to read on the plane to Africa. It has a very practical and clear setup with good summary conclusions and is so well written that before you know you’re halfway through a chapter. A very helpful guide to test our policy and approach towards Africa’. 

─ Matthijs Spiering, Commercial Director, Zeelandia

‘This book has arrived at just the right time. Today Africa offers excellent opportunities for Dutch entrepreneurs. It shows where they might be found, and gives examples of how to seize them. With its combination of academic insights and practical information, this book stands out.’

─ Renée Jones-Bos, Secretary General, Netherlands Ministry of Foreign Affairs

‘This book is a must read, not only for businesses and governments, but also for NGOs that are interested in new forms of partnership with corporations to contribute to sustainable development even more effectively.’

─ Alexander Kohnstamm, Executive Director, Partos