The Business in Africa About the Telephone Connectivity

In 2001, a small African telecommunications company bought a $ 285 million license to distribute the mobile signal at a state auction in Africa. Observers called the company decision “crazy.” For four decades, the country was under military dictatorship. Africa had large oil reserves, but otherwise it was very poor. Its infrastructure was almost completely destroyed.

The State Telephone

The state telephone company took an eyelid to bring the total number of subscribers to several hundred thousand (with a population of 120 million people). The business climate was difficult to call stable.

However, the company took a risk. The company’s executives learned from their friends that there are about 10 million pay TV subscribers in Africa. If so many Africans could afford satellite TV, then they can buy a mobile phone.

  • For five years, 32 million people have become clients of the company in Africa. Currently, the company operates across Africa and the Middle East, but Africa remains its single largest source of income, the British magazine The Economist writes.
  • Many companies have been generously rewarded for risky investing in Africa. In Africa, there are some of the fastest growing economies in the world, and Africa is the largest among them. In April, the country revised its official GDP, as a result of which it increased by 90% (before that, the outdated method of statistics was used).
  • Today, every fifth inhabitant of Africa south of the Sahara lives in Africa. The population of the country is increasing every year by 2-3%, and its significant part is young, ambitious and more educated people.
  • Africa has become a testing ground for the strategy of the world’s largest producers of consumer goods for the whole of Africa. And this is not only because of its size. When it comes to Business of Africa the businessmen should be aware of these matters.

Market in the central business district of Lagos

However, Africa is an example not only of great opportunities in Africa, but also of all the shortcomings of the Black Continent. The epidemic of ebola fever in Guinea reached Lagos. Attacks by fanatics of the radical Islamist group Boko Haram are a reminder of the existence of numerous conflicts in Africa. The country is in a terrible state of transport, as well as energy infrastructure.

The rules of doing business can change at any time and, as a rule, for the worse. Access to the mass consumer is not an easy task, since most of the trade takes place in open markets or in stalls along the road. Nevertheless, a growing number of global brands believe in Africa and are ready to take risks. But foreign companies that would like to do business in Africa should remember three important things. First, be very careful in choosing a partner. The biggest mistake of a foreign company may be an incompetent or dishonest distributor. Even working with a reliable local firm can be unsuccessful if there are insufficient incentive measures.
scratch off map

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