Why Investors are Rushing to Africa

"Africa is growing: Out of the top 10 most important investment destinations today, six are in Africa. [Among those are] Kenya, Angola, South Africa and Nigeria. There is huge potential right now. Everybody is rushing towards it because Africa now has a more stable political climate than ever before. Furthermore, nearly all developed countries are finding it extremely difficult to grow, but Africa is expected to grow probably at 6% in the coming years" Read more: Business Insider

Athough African is not as developed as the rest of the world, there abounds alot of opportunities waiting to be explored. Unfortunately, foreign investors seems to see what we can't see in our land. They are rushing to tap into what mother Africa has got. Its time Africans begin believing in Africa and the opportunities it holds. 

Each country in Africa has its own advantage, and its time to explore them.

Don’t Go Missing in the Market

When preparing a business plan for fresh Start-Ups, I often ask the following questions:

• What do you know about the industry you want to enter?
• Who are the players in the industry?
• What is the current trend in the industry?

Simple questions you may say, but I have never received a direct and confident response from any of them. Many people are certain that they will succeed in business because they have the money or they are very passionate about what they want to do. However, in today’s ever changing world, money and talent are not just enough for you to be in business, you need a mental compass of where you are going, those that you will be up against, what advantages or challenges you are likely to face so you don’t get swallowed or missing in the market. Only an industry analysis will provide you such information.

Many small businesses are actually missing in the market because they underestimated the need for proper industry analysis. Industry analysis is not about knowing your customers or audience but its about knowing other competitors and what they are doing. A good industry analysis -

• helps you to identify the un-served market;
• identifies a segment you can profitably serve;
• identifies a niche that is tangible;
• helps sharpen your business focus;
• strengthens your strategy;
• exposes the weaknesses of your competitor’s strategy;
• identifies the best market entry mode for you;
• tells you what type of pricing method to adopt;
• makes your product or service significant to your audience;
• and shows you at what level you can comfortably do business without suffocating.

Unfortunately, many have failed to analyze the industry very well hence their lack of presence in the market, and the struggle to get notice by the consumers. They had no idea of the intensity of the competition they were likely to face, unsure and unclear about the market segment, displayed low quality competitive edge, and more importantly, failed to identify the variables that will best differentiate their business.

You can’t compete in a battle when you don’t know your opponents

You need to identify companies your business cannot challenge yet in the market, and strategically avoid direct competition with them. Understanding your industry, its players, current technology and the industry trend saves you the embarrassment of being in the market and yet no one can find you.

Analyze your industry before you make a move so that you don’t get missing in the market.

Nigerian Government reduces cost of Business registration

The Federal Government has approved the downward review of the cost of business registration at the Nigerian Investment Promotion Commission (NIPC) from N50, 000 to N15, 000. This was made know by the the Minister of Trade and Investment, Olusegun Aganga. The downward review was designed to make Nigeria highly competitive in line with international best practices, and at the same time, lower the cost of doing business in Nigeria.

The NIPC was established to promote, encourage and coordinate investment in Nigeria, they are also mandated to register and keep records of all enterprises with foreign equity participation.

All investors both new and existing are encouraged to take advantage of this gesture to ensure that they are dully registered with the commission in line with Section 20 (1) and (2) of the NIPC Act.
Failure to do so is a violation of the law. “The section states that an enterprise in which foreign participation is permitted under section 17 of this Act shall, before commencing business apply to the commission for registration and the commission shall within 14 days from the date of the receipt of completed registration forms, register the enterprise if it is satisfied that all relevant documents have been duly completed and submitted or otherwise advise the applicant accordingly.

Culled from ChannelsTV - http://tinyurl.com/btkdb6y

Doing Business as an Under-Dog

On 10th February 2013, the Confederation of African Football concluded its 29th edition of the tournament tagged: South Africa 2013 (AFCON 2013), which the Super Eagles of Nigeria won for the 3rd time. Beside the intrigues and excitement that is associated with the competition, there are a few lessons small business owners can learn in order to boost their competitive edge in the market. Nigeria was the under dog in the competition, but the lifted the cup. No body gave Burkina Faso the opportunity, but the got to the final.

In business, nobody will give the chance to succeed. You have to fight your way through knowing that you can only be celebrated when you come out victorious.

In today’s business,

There are really no under dogs in business any more

Nigeria and Burkina Faso that played the finals of the tournament were they under-dogs; in fact nobody gave Burkina Faso the opportunity of qualifying from the group stage let alone making it to the finals for the first time. Both these teams were resilient, determined and courageous to fight even the favored giants. Burkina Faso eliminated Ghana; one of the favorites, while Nigeria played passed Cote d'Ivoire to reach the finals.

No matter the industry, never consider your business too small to face the giants. Most big businesses were some day small also.

Businesses Strives on new resources

What separate failed businesses from surviving ones is simply new resources. These resources could be in form of new ideas, new technology, innovation, new opportunities. In the tournament, we saw the injection of new locally based players, indigenous coaches, new foreign players and exceptional skills. Every business is supposed to re-invent itself as regularly as the industry changes. Survival is not a matter of capital alone, it’s about the new resources you are introducing into your business. You cant keep trading on old ideas when the industry has adopted a new one.

Even the Big businesses have weaknesses

All the big businesses in any industry have a measure of weakness. They know, you may or may not know, and they don’t want you to know more about it. Many of the big businesses have weaknesses that money cannot solve. The big businesses make you feel that your biggest problem is capital, but consider it, most big businesses also started small in an industry where the big businesses dictated the trend, yet they survived. Nigeria exploited the weakness of Cote d'Ivoire by caging there super players like Didier Drogba, Yaya Toure and the likes. Learn to trade on the weakness of your competitors, and soon you will take over the market.

No team wants to be a spectator

No team comes to a competition to be a cheer leader. Every team wants to win and become champions. Like wise, no business exists to watch others succeed. See yourself as a competitor, not as an under dog. Does that succeed, do so because they believe they can, they have the determination to do more, and the courage to face any challenge.

Nobody has the monopoly of success, if your vision is strong enough, and you are focused on your goal, you will always come out successful.

No matter how small your business is, or how tough your competitors are, you can always win in business even as an under dog.