Compliance in Africa: why most EORs can't ensure compliance (and why we can)
- Last updated: October 16, 2024
To the outside eye, compliance may not appear to be an extremely complex task.
After all, it mostly consists of adherence to the law, does it not? So as long as you are aware of the latest changes in the law, compliance may seem like child’s play.
Of course, this is not the case.
Compliance is multi-faceted, ever-evolving, and time-sensitive. It requires deep local understanding, the ability to match the at-times jarring pace of changing regulations, skills to interpret these changes, and then actively adhering to the local law, which means timely and accurate calculations and remittances.
Compliance is not simple or easy, which is why many EORs get it wrong, and why we, on the other hand, can ensure it.
The Compliance Challenge in Africa
Diverse Legal Landscapes
Africa is home to 54 different countries, each with its own history, culture, language mix, legal system, employment laws, tax regulations, and business practices. Faced with such diversity and richness, EORs trying to implement a one-size-fits-all strategy, or a “general African strategy” often fail in their endeavours. The nuances in labour laws, tax obligations, and statutory benefits across all of Africa’s countries is so pronounced that compliance requires a deep understanding of each country’s legal framework, customs, frame of mind, and professional expectations, among other things.
Rapid Regulatory Changes
Laws often change in a bid to adapt to changing times. As such, many African countries are constantly in the process of updating and refining their laws and regulations with the aim to improve governance, make business easier, and to attract more foreign investment as well. These changes can happen often and crop up abruptly, making it difficult for EORs that are not locally rooted to stay abreast of the latest requirements.
Local Expertise and Presence
Ensuring compliance isn’t just about understanding the laws; it’s about having a profound understanding of the local culture, of the attitude of local professionals and the values surrounding work in any given African country. Local expertise and a physical presence are essential for navigating the complexities of the regulatory landscape. To ensure compliance, EORs must also understand how to handle often tricky government relations, and how to swiftly remedy any changes or issues that arise.
Why Most EORs Can't Ensure Compliance
Limited Local Knowledge
Many EOR providers operating in Africa are actually global EORs. Africa, for them, is only a small part of what they do and unfortunately, this means that EORs with such generalist profiles lack the in-depth local knowledge necessary to ensure full compliance in Africa.
Without an appropriately nuanced understanding of the local laws and customs, these types of EORs risk non-compliance, which can lead to fines, legal issues, and reputational damage for their clients.
Insufficient Infrastructure
Maintaining compliance at all times requires solid resources and infrastructure. This includes legal, HR, and payroll systems that are either tailored to or which can easily adapt to each country’s specific requirements.
Unfortunately, many EORs lack these essential resources and infrastructure. Even an outdated payroll system can make a great difference, making it difficult to manage these complexities effectively, resulting in errors and omissions that will ultimately cost you.
Inadequate Monitoring and Adaptation
Africa’s regulatory landscape is not set in stone. It is always moving and changing, which is why African countries as a whole demand constant monitoring as well as the ability to adapt quickly.
Many EORs have neither the mechanisms in place to track regulatory changes as they are introduced, nor the agility to implement the necessary adjustments promptly.
Why We Can Ensure Compliance
Deep Local Expertise
At Africa HR Solutions, our commitment to compliance in Africa begins with our commitment to Africa and to the deep local expertise that has come from it. We are an African EOR serving Africa, and so, are deeply rooted in all the 46+ African countries we operate in. This helps us ensure that we understand and stay up to date with local laws and regulations.
Our on-the-ground presence also allows us to provide tailored solutions that meet the unique needs of each African country.
Robust Compliance Resources & Infrastructure
At Africa HR Solutions, we have invested in building a robust compliance infrastructure that integrates the best of legal, HR, and payroll systems. On one hand, our payroll platform is designed to handle the many intricacies of African employment laws, tax regulations, and statutory benefits. On the other, our team of legal and HR professionals are here to help you get the peace of mind you need, knowing that all your HR functions are being taken care of compliantly and reliably
Regulatory Monitoring
At Africa HR Solutions, we approach regulatory monitoring in a proactive way, instead of simply reacting to changes where and when we do find out about them. This allows us to keep pace with regulatory shifts and implement necessary changes before they can impact our clients or our 100% compliance end goal. Our flexibility is what enables us to ensure compliance for our clients, regardless of how frequently the regulatory landscape changes.
Choose Africa HR Solutions for full compliance across Africa
Ensuring compliance in Africa is a never-ending challenge that many EORs are ill-equipped to handle.
The diverse legal landscapes, rapid regulatory changes, and need for local expertise require a specialised approach – things that we at Africa HR Solutions can proudly offer. We differentiate ourselves through our deep local knowledge, robust compliance infrastructure, proactive monitoring, and comprehensive support.
Compliance isn’t an abstract idea for us; we know exactly what we are doing. As such, we can help you on your journey to business growth and success in Africa.
Are you ready to expand your operations into Africa with a trusted partner? Contact us today to learn how we can help you navigate the complexities of compliance and unlock the full potential of this vibrant continent.