Business
Understanding how to do business in Africa
Foreign investors often cite a difference in business cultures as one of the challenges of operating in Africa. However, even local African business people need to be aware of the various cultures and attitudes within their own regions.
“It is interesting that even within East Africa we also have our own intercultural challenges,” explained David Kinyua, a director at Kenyan real estate group Acorn, during a panel discussion at the recent Africa Property Investment Summit in Johannesburg.
He said that while a Kenyan property company might command more respect in Tanzania if it has a foreign partner, this is not necessarily the case in Ethiopia.
“If you go to a place like Tanzania as a Kenyan property developer, it is interesting that it may help if you are partnered with a South African firm. If you go to Ethiopia today with a South African, British or Australian firm it may not help you too much, because then the understanding would be, ‘look if you are an expert, then why do you have a foreign partner to boost your credentials?’.”
He said that in Rwanda and Uganda, more weight is given to the “idea” behind a proposed project, than to the individuals or companies involved.