Prepare yourself before hand for choosing Africa as a Business destination
South Africa is considered as a very fruitful business destination. Especially when we are talking about UK trade with the region, South Africa becomes prominent. As it is the major trading partner with UK in Africa. This does not mean that UK is not in trade with other areas as there are new markets emerging in sub-Saharan region and Kenya, Nigeria already in trade relation with UK.
But as South Africa gets the largest share of trade, it has become prominent in Cargo to Africa. This region is very rich in agriculture and also the environment for doing business is favorable which attracts the investors.
How the Task is done?
Visiting a new country, unknown people, economic system and infrastructure, all become a big hurdle. To overcome all these difficulties, UK government appoints parliamentarians from among the political parties to lead business delegations to other countries where Britain wants to boost trade and business for bilateral relations. With this facility, present making place in the new environment becomes easy. Same is done in case of Africa but keeping in mind the trade area and its need.
As people are now aware of their purchasing power and decision making has become strong for trusting or liking a product. So, hitting the right market is very important to be successful to improve air and sea cargo growth.
Current Exports of UK to South Africa:
At present, the major exports of UK to South Africa are fuel, machinery, vehicle, medical, pharmaceuticals, and food. There is plenty of scope for UK businesses in areas like energy, transport, health care and education sectors. Africa is not a fully developed region, and hence requires help from outside its premises for keeping things going and at the same time, help is needed to make the situation better in every sector. Trade is the best way to do this as you get something of your interest in return.
For example, it is being said that after Brexit, there are chances of increased imports of fruits and vegetables from Africa which is the demand of UK at present as their own production has fallen to a large extent, and thus they are relying on imports for fulfilling the need of their people.
What the newcomer has to face:
As any other region, there are obstacles that can stop or slow down your efforts of establishing a business in the land. There is a high rate of unemployment in the country and people are not assured of getting a job and maintaining it for longer. Then the poverty factor also becomes a challenge for the businessman as the power of purchase may not be as it was expected. Another very important factor is the skill and capacity shortage, which is there due to less opportunity.
Lack of infrastructure is also a big problem that makes it difficult to adjust in this region. There are no solid and proper working departments for resolving energy, water and transport areas. High crime rate becomes another problem the businessmen have to face while doing business and keeping a close check on such activities is necessary. Then there is legislation, the Broad-Based Black Economic Empowerment; which the investor has to tackle while setting a company.
