5 Key Takeaways from our “Tapping into Africa: Your 2023 Hiring Blueprint” Webinar

GP Webinar tapping into Africa

If you have missed this webinar but still want to capitalize on the insights shared by Alex Daruty, Head of Commercial at Africa HR Solutions, you are in the right place! Here are 5 things you should know when considering a business expansion into the African continent.

You can also watch the webinar in VOD on our events page.

Takeaway 1: Africa is growing at record speed

Where other regions are lagging, slowed down by the pandemic and its repercussions, Africa continues to power forth.

“Several factors contribute to this positive trend,” Alex explains.

“This includes a growing middle class, increased urbanization, improved infrastructure, and a rising entrepreneurial spirit.”

All these factors and more have contributed to an average annual GDP growth rate of around 3.7%, with Foreign Direct Investment (FDI) – expected to keep increasing, reaching $83 billion in 2022, according to the United Nations Conference on Trade and Development (UNCTAD).

But which sectors are generating such investments?

Alex says that some key sectors that have been thriving in Africa include: “Mobile and Internet Technology, Renewable Energy, Consumer Goods and Retail and Financial Services.”

Takeaway 2: Understanding that every African country is different

There is this tendency to paint all of Africa with one broad brush, to rope in all African countries from North to South and West to East together, for better but more often for worse. But the truth is very different – and companies must learn to see Africa in all its diversity.  

“It’s important for businesses to conduct thorough market research, understand local laws and regulations, and have a flexible and adaptive approach to navigate the specific nuances of each country.” Highlights our Head of Commercial.

Alex also encourages potential investors to: “Recognize that there may be cultural nuances, bureaucratic challenges, or unforeseen circumstances that can affect your plans. Take for example legislative changes in Africa. A staggering 60% of Africa has had legislative changes over the past 90 days, amounting to nearly one a day.”

Featuring anglophone and francophone countries, highly-developed and still developing nations, the true wealth of Africa is its diversity – one that investors like yourself can harness to write successful business stories.

Takeaway 3: Remote work is taking off in Africa

“Several African countries have emerged as attractive destinations for hiring remote workers due to various factors such as reliable internet connectivity, favorable time zones, and lower labor costs.” adds Alex.

“Based on our experience, here are a few African countries where we’ve seen significant growth in remote workers:

  • South Africa – Known for its robust IT infrastructure and a large pool of skilled professionals, making it a popular choice for remote work.
  • Kenya – Kenya has been steadily growing its reputation as a hub for technology and innovation in Africa. Nairobi, the capital, is home to numerous tech startups and a thriving IT sector.
  • Nigeria – With a large population and a vibrant tech scene, Nigeria has become a hotspot for remote work in Africa. Nigerian professionals are known for their expertise in software development, digital marketing, and customer support
  • Egypt – Egypt has a well-established IT industry, especially in software development and IT outsourcing. Cairo, the capital, is home to many technology parks and incubators, attracting skilled professionals in the field
  • Ghana – Ghana is experiencing a surge in tech innovation, and its capital, Accra, has a growing tech startup ecosystem. The country has a reliable internet connection, English-speaking workforce, and a favorable time zone for collaborating with European and American companies”

Takeaway 4: Understanding the limits of modern technology

It is true that remote work and other modern ways of working are taking off in Africa — but businesses must also understand that they will face a number of limitations where technology is concerned in Africa.

 

“It is important to recognize that it is not a one-size-fits-all solution, especially when it comes to payroll processing in Africa.” Adds Alex,  

“While technology can offer certain benefits, there are significant limitations that hinder its effectiveness in this particular context.

  • Limited internet connectivity: Despite significant advancements, many regions in Africa still face challenges with internet connectivity.
  • Infrastructure challenges: Many parts of Africa lack the necessary infrastructure, such as reliable power supply and hardware infrastructure, to support complex technology solutions.
  • Diversity of languages and cultures: Africa is a continent with immense linguistic and cultural diversity – 21 French speaking African countries. Each country has its own languages, dialects, and unique cultural practices. Implementing a standardized technology solution across Africa would require significant localization efforts to accommodate these diverse needs.
  • Limited digital literacy: While technology has made significant inroads in urban areas, many rural communities still lack the necessary knowledge and skills to effectively utilize complex payroll systems.
  • Regulatory and compliance challenges: Each African country has its own unique labor laws, tax regulations, and compliance requirements. Adapting technology solutions to meet these specific legal frameworks and ensuring compliance can be a complex task

Takeaway 5: Choosing the right partner for your expansion in Africa

While Africa is growing as a land of opportunity, no amount of goodwill or opportunity can be of help when a country and its legislation remain foreign to you. Which is why picking the right expansion partner is so important.

“Make sure that you are comfortable working with a partner who understands the local tax regulations and payroll requirements.” advises Alex.

But what else should businesses look for in an EOR or PEO partner?

“Your EOR/PEO partner should be updating you and your employees about local laws, regulations, and policy changes regularly. The right EOR/PEO partner […] shall provide you with a thorough research of the labor laws and regulations of the specific country or countries you plan to expand into.”

According to Alex, they should also help you “to draft employment contracts that comply with local laws and regulations. Ensure that the contracts include all required terms and conditions, such as compensation, benefits, working hours, leave entitlements, termination procedures, and any specific provisions mandated by local laws.”

So if you find a potential PEO/EOR partner lacking in those aspects, you may be certain that they do not have the ability to support your progress in Africa.  

But there is one partner who meets all these criteria and more: Africa HR Solutions. We understand the issues that companies like yours face as they expand to Africa – in fact, we have been helping businesses like yours succeed for the past 11+ years.

So if you are ready to embrace an efficient and 100% compliant expansion solution to Africa, get in touch with our team today.

Table of Contents

Experience a seamless, rapid and secure expansion in Africa

Contact us today and learn more about the many benefits we offer to businesses seeking a compliant expansion across the African continent.
Facebook
LinkedIn

Featured Blog Posts

GRANT GERAGHTY - Africa HR Team

GRANT GERAGHTY

HEAD OF CLIENT RELATIONSHIP

Grant Geraghty is the longest-serving member of the Africa HR team. This resident subject matter expert and client champion is responsible for gaining a deep understanding of our clients’ unique HR needs in Africa and providing tailored solutions that align with their business objectives. Grant collaborates closely with our clients to ensure that their requirements are properly implemented, providing ongoing support and guidance throughout the process.

Grant brings a wealth of experience to his role, having served as Africa HR’s longest-serving employee. He holds a Bachelor of Commerce degree, with a major in Economics and Business Finance, from the University of Natal in South Africa. Additionally, he has completed a certification program in Payroll and Tax Administration from the University of Cape Town, further enhancing his expertise in HR operations and compliance.

His commitment to delivering exceptional service and his extensive knowledge of HR in Africa make him an invaluable member of the Africa HR team.

KEVINA TAKOORDYAL Africa HR Team

KEVINA TAKOORDYAL

HEAD OF OPERATIONS

Kevina Takoordyal has a BA Hons Business Management from the University of Glamorgan, UK, with MBA in leadership and Innovation, MBA General, PMP Certified, and Agile Scrum Master. She currently works as the Head of Operations at Africa HR Solutions Ltd with more than 20 years of proven leadership capabilities in Operations, Business Development, People Management, Process Optimization, and Project Management in the Financial Services, BPO, Banking Industry, and Heath Care Industry. In Senior leadership roles with an international footprint across Europe working and extensive Pan- African experience from a compliance, finance, and operations angle, Kevina comes across with a panoply of cross-functional skills. Kevina also serves on a few Boards, Non-Independent Executive at MioD and for NGOs on a voluntary basis, a coach and mentor to aspiring female leaders across Africa and Mauritius.

Kevina is a firm believer in Servant Leadership with a strong focus and commitment to uplifting others, with the ability to deliver through a highly engaged – diverse team, and works towards consistently synergistic value creation. While being a focused and adaptive thinker and Kevina is actively participating in panel discussions on Innovation, CX, Digital transformation.

Kevina serves as Project Assessor for the National Youth upskilling program. She has been recognized as Global Talent in a few companies, Ceridian, and International SOS Ltd whereby she has been awarded a few scholarships and had the opportunity to be mentored by Senior Vice President in the US. Award Winner in various fields and at a national level and recognized including Super Achiever Leader Award in Africa in 2016, Awarded Africa Women Leader 2018.

VILOSHNA PACKIRY POULLE​

VILOSHNA PACKIRY POULLE

Head of Finance & Business Support

Viloshna is an experienced finance professional with 18 years of expertise in strategic financial planning, financial analysis, cash flow management, systems and controls implementation, financial reporting, and continuous process improvements. She currently serves as Head of Finance & Business Support, where she has successfully automated and leveraged the financial reporting system capabilities to ensure efficient company operations.

Viloshna’s background includes senior roles in a multinational pharmaceutical company and a large listed Mauritian conglomerate. Her meticulous attention to detail and strategic thinking have streamlined financial processes, making her a valuable addition to any finance team. Viloshna is a qualified finance professional with an FCCA qualification and an MBA, bringing valuable expertise to any organization.

In her current role, Viloshna leads the company’s Treasury and Payments function, including the fulfillment of the company’s cross-border payments into Africa. With her strong educational background and extensive experience, Viloshna consistently demonstrates her ability to optimize financial operations, minimize risks, and improve profitability. Her expertise in financial reporting and process improvements make her a valuable asset to any organization.

MARK DU PREEZ​

MARK DU PREEZ

Head of Legal & Compliance

A qualified lawyer who joined Africa HR Solutions in July 2020, Mark Du Preez has experience working in private practice for a reputable law firm in South Africa. He also played commercially focused roles at a leading private bank, wealth management company, and outsourcing firm in South Africa and Mauritius.

Mark has played a pivotal role in Africa HR Solution’s risk mitigation strategy, which positively impacted P&L performance over the years.

He currently leads the Partnerships function of the company including relationships and oversight with in-country partners (ICPs) across Africa.

Alex Daruty - Africa HR Team

ALEX DARUTY

Head of Commercial

Alex has more than 15 years of experience in the global, strategic development of both enterprise and consumer brands in categories including technology, transport, enterprise software, entertainment, and travel.

With experience in roles on both agency and corporate side, he has worked across international brands and has led the development and execution of multi-discipline campaigns across EMEA, NORAM and Asia Pacific.

His focus is on driving meaningful business impact through brand differentiation and building high-functioning, digitally oriented, and analytically driven capabilities. He is motivated by working with, and developing dynamic people, teams, and organizations.

He leads, manages, develops and mentors the Key Account Management department, including line management responsibility for the team of Key Account Managers and Key Account Administrator who represent the Company as the primary communication link between all relevant stakeholders, including clients, third party in-country partners and internal functions.

Originally from Mauritius, he holds bachelor’s degrees in International Business, Finance and Management from the University of Nevada, Reno.