When times are tough or when you are expanding, it is a great option to expand into other regions.

South Africa is fortunate to be regionally close to some fastest-growing markets and companies.

Business Insider writes about the growth in Nigeria and Kenya. Depending on the industry, Agriculture, Telecommunication, Banking, Infrastructure, and Oil and Gas are the industries to watch.

Benefits of doing business in Africa

Workers and staff can be a significant expense in any business. For one, labour is still very affordable on the continent. There is an abundance of keen and eager workers still cheap for companies, which is a significant benefit.

The open spaces and availability of land can help the agribusiness expand. The planet’s population grows exponentially, and food supply is a growing concern.

The availability of solar power and natural resources will continue to make Africa an option for business growth. Operating in these areas will secure opportunities and business growth in the future.

How easy is it to start a business in Africa?

Mauritius is currently the most accessible country to start a business. The government has specific drives to attract investment.

Political and social stability is a significant benefit for a business to invest in the country. Mauritius is one of the most peaceful countries globally, with a robust democracy.

They also have very lucrative tax regimes that benefit companies and help them grow.

To register a business in a country or trade there as a subsidiary needs careful consideration.

Some tax implications can benefit or hinder growth. Get advice from a business and tax advisor in the region to stay on the right side of the law.

Building relationships and trust in a new market

While finding opportunities in neighbouring countries is one thing, you still need to build a relationship. If you have a good track record in South Africa, it will be an easier transition. Ensure that your documentation, social and digital media are up to date and you can deliver on your promises.

Political benefits

Many companies get eliminated from tender processes based on BEE status in SA. The restriction is not an issue across the border. The rest of Africa does not have limiting policies that exclude companies based on gender, race, or class.

For many SA companies, this is a reprieve and an olive branch for business opportunities in the future.

While expansion is an exciting concept, it is still essential to dot all the I’s and cross all the t’s. Many companies also experience significant losses by not doing enough market research.  Consumer research and insights into the needs of the business offering is essential.

Find your advisors carefully and ensure you do all of your due diligence. It will be the best money you spend.

Bizcash is a proudly South African FinTech business that offers alternative funding options and solutions for SMME businesses.

Let us help your business grow.

Please speak to our team to find out more about supporting your business growth with alternative funding options.

Get in touch with us on 0861 93 93 93 or email us at info@bizcashscf.co.za or contact us here.

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