In march 2018 at a historic meeting of the African union in Kigali Rwanda, member states agreed to create an African Continental Free Trade Area. 52 of the 55 member states signed up to the agreement representing a remarkable degree of consensus across the continent.

1. BUSINESS STRATEGY RECOMMENDATION
ON WHAT A LOCAL BUSINESS IN
CAMEROON SHOULD DO TO BE ABLE TO
SUCCESSFULLY CARRY OUT BUSINESS
ACROSS THE CONTINENT OF AFRICA
AJAN LORI ABEI

2. INTRODUCTION
 Africa shows every sign of being the world’s next big growth market.
 It is home to more fast-growing economies than any other region, hundreds
of successful big companies, and a billion-person, urbanizing consumer
market whose spending outstrips that of India.
 Companies that succeed in Africa, have the imagination to see Africa’s unmet
needs as opportunities for growth, and the long-term commitment required to
build businesses of meaningful scale.
 According to Sarah Boumphrey, head of countries and consumers research at
Euro-monitor International, Africa is home to 12% of the world’s population.
 With a collective GDP of $2.5 trillion making it the 8th largest economy in the
world just after India with 1.2 billion potential consumers.

3. The AfCFTA, how it steps in…..
 In march 2018 at a historic meeting of the African union in Kigali Rwanda,
member states agreed to create an African Continental Free Trade Area.
 52 of the 55 member states signed up to the agreement representing a
remarkable degree of consensus across the continent.
 Three major benefits of the continental free trade area agreement;
 Encourage investments necessary for economic growth and create job
opportunities the continent badly needs.
 Free movement is endorsed making it easy doing businesses across borders and
people can be able to use their talents anywhere in the continent
 It would increase trade across African countries which could boost regional
trade by nearly $1 billion

5.  Any local business in Cameroon aiming to move his business to the continental
level can make use of strategies to succeed as follows;
 Do your research before entering the market
 First of all, gaining a thorough understanding of the market is crucial, and this
includes understanding your competitors, suppliers, consumers and the
operating environment.
 It is important for local businesses going continental to spend some time in the
country first to get to know the market.
 A classic example is, Shoprite (a South African-based food retailer), ‘they leave
Johannesburg and go to Nigeria to see everything themselves,” (cited
Ogunniran, a Nigerian business man)
STRATEGIES

6.  You need to narrow down the markets for the first phase of continental growth
by determining which markets are most viable for what you offer.
 Market entrance and size, cost efficiency, labor and resource supply,
geographical constraints and legal regulations must also be considered.
 Be culturally sensitive and design appropriate products
 Prepare content that is culturally sensitive to particular areas without assuming
that what works at home will work abroad because creating an emotional
connection in a global/continental context is challenging.
 Use visuals and content that resonate with the culture and its various nuances.
 Design appropriate products, not cheap products

7.  Leverage local experts
 To speed up your learning curve, turn to local experts for insights on engaging
your target audience, about the local market and listen to their advice.
 Let them know you have their best interests at heart, help them understand
your message and accept their help on everything from content to social media.
 Partner with local companies
 By far the most widely used strategy cited by investors and heads of
multinational companies operating in Africa.
 Can be hugely helpful towards a company’s expansion into an African country
as local partners can provide insight into the local consumer behaviour, have
the valuable local networks in place for business, and have the operating or
legislative know-how.

8.  Think about pricing strategies
 “A pricing strategy is very crucial,” said Boumphrey.
 Income inequality is massive across the region, with average per capita
spending in Burundi coming in at around US$175 per capita, compared to over
$9,000 in the Seychelles.”
 Have your own logistics division
 Many African countries lack quality logistics and transport infrastructure.
 Distribution is a major challenge so many companies take care of their own
logistics
 PZ Cussons, the UK-based consumer goods company which is extremely
successful in Africa, attributes a large part of the success to its wide network of
depots and factories.”

9.  Set up a billing and payments system for your customers
 Currency exchange and varied payment systems can put off small businesses from
going continental and even global.
 There are now easy ways to deliver an online invoice in various languages and
currencies that also include the appropriate tax and fee guidelines for that particular
country.
 You can also access affordable international credit card processing solutions that
help you expand the type of payment options you can offer your customers.

10. CONCLUSION
 Although investing in another market can be risky and require a lot of capital,
the rewards can be huge.
 By selling your product or service in another country, you can introduce your
company to huge markets, increase your sales and profits, gain brand
recognition, reduce the risk of only operating in one market (example, due to
economic or seasonal downturns) and extend your product’s life cycle.

12. References
 https://www.ubaamerica.com/key-issues-in-african-trade/
 Dr. Vera Kum, Economic Policy Analyst with the Nkafu Policy Institute – Denis &
Lenora Foretia Foundation.
 Sarah Boumphrey, Euromonitor International blog (www.euromonitor.com)
 Kate Douglas on 11th October 2013, how we made it in afriica.