As discussed in the first part of the paper last week, my cultural framework for doing business in Africa relies on culture, doing business ranking, EM status, & soft power ranking to recommend sectors in Africa that are likely to be successfully tapped by foreign investors. Having already discussed the energy sector, this week I consider the materials, industrials, consumer discretionary, and consumer staples sectors.
The success of the Chinese in illegal Ghanaian gold mining, which contiunes unabated despite government action, is also a case in point. Chinese entrenchment in Ghana’s mining sector is on the back of a pervasive local culture of artisanal-type but illegal “small-scale mining practice. With many poor Ghanaians dependent on galamsey for their livelihoods, and the Chinese now major players, it has become very difficult for the government to clean up the sector.
Retailing is also more lucrative in South Africa, where a mall culture is already entrenched. The case of South African retaileris instructive. When it expanded to West & East Africa, it failed. Still, its business continues to thrive in South Africa. Incidentally, relatively small-scale local retailers, who import apparels etc., thrive in these same West & East African countries.Food & staple retailing has been found to be successful in almost all African countries.