Investor Resources

Large parts of Africa have seen impressive and sustained economic growth patterns with the continents economic output tripling over the past decade. Political, economic and regulatory reform is reshaping the continent. Armed conflict has significantly reduced, providing the relative stability required for economic growth and development. Structural changes have helped invigorate markets and commerce, creating an environment that is increasingly conducive to business and investment...

Distribution in a relatively young and unsophisticated market can prove to be a difficult task. Here are some important factors and issues to consider when looking at distribution in an emerging market.

1. Fragmented markets

Modern trade in most African countries is still in the very early stages of development and reaching large numbers of traditional outlets (e.g dukas) is a difficult and costly business...

In supply chains in African businesses, the challenge is not big data, as in developed countries, but simply data itself. While striving for increased visibility, African companies’ goals remain focused on the internal organisation rather than suppliers and customers.

A number of key Supply Chain Issues:...

When discussing supply chain management in Africa, words such as bottlenecks, bureaucracy and corruption are often referred to. While there are similarities and differences from region to region and country to country, it is vital to understand these as opposed to grouping the entire continent into one category...

Trade in Africa is still in the very early stages of development. The numerous traditional trade outlets (e.g. dukas) remain the biggest segment of the market. Moving goods to this large, fragmented base is difficult and costly. Smaller stores have limited cash flow and stock space resulting in the need for an intermediary such as a wholesaler to break bulk deliveries into more manageable quantities...

Implementing a 3rd party distribution system in emerging markets can be a challenging undertaking. Often distributors don’t have the required skills and need additional support and training in order to be successful. Below are a number of issues to consider.

1. Supply Chain Skills Development

Emerging markets...

It is important that an investor considers the issue of dispute resolution at the outset of the transaction. It should form part of the investor's evaluation of the risk of the investment and not left as a minor point to be addressed at the end of the contract drafting process.

Ghana's Legal System

The Ghana legal system is based on English common law, customary (traditional) law...

Growth in international trade and investment, alongside periodic crises, has made investors navigating foreign terrains wish for a “sixth sense” to anticipate and mitigate the dangers inherent in operating in Country X as opposed to Country Y. Country risk analysis, which is the subject of this brief, is the result.

Any consumer of Africa-related country risk analysis should be aware of inherent potential bias/weaknesses built into the practice:...