How to ensure operational safety when expanding to multiple African countries

“Africa is dangerous.”

This kind of misconception, rooted in fear and the unfair assumption that all of Africa’s 54 countries are one and the same, can stop organisations like yours from realising their most ambitious goals and from conquering new markets.

Is it true that there are some operational risks when leading a pan-African expansion campaign? Yes – as is the case for all business endeavours.

But there are proven ways to avoid falling into traps and to expand safely to multiple African countries. Here they are, brought to you by our in-country teams across 46+ African nations:

1. Research and country risk assessments

Because Africa is no monolith and every African country has its own unique characteristics, opportunities, markets, and risk profile. Businesses should do their due diligence before expanding. Consider these key areas:

• Political stability
  Use risk indices (For example the Global Peace Index) and research the country’s current political climate, keeping up with the news to be aware of any developments.
• Security threats
  Keep up with the news, and research any trends in violence that there may be in this country.
• Health risks
  Consider whether there are any ongoing epidemics and sketch this against the healthcare infrastructure that is available in the country of expansion
• Regulatory environment
  Consider the legal frameworks and bureaucratic culture in place: it’s at this point in time that you should look into labour law regulations and how this will affect production and your overall business operations.
• Infrastructure & logistics
  If your business is heavily reliant on good transportation, it is imperative that you consider the state of the roads, ports, and other available utilities. Where an African country might have precious resources, poor public infrastructure will make doing business hard.

Overall, you should create a risk map for each target country to establish the potential risks versus the potential wins when expanding.

2. Choose vetted partners

Investing your trust in the wrong partners will cost you... Choose your partners with care, checking their:

• Track record
• Client testimonials
• Online reviews
• Relevant certificates
• Case studies
• Even their official licenses, whenever applicable

This level of care and attention goes to every partner you choose to work with: from the cleaning team to your office supply companies, to your payroll and compliance needs all across Africa.

Africa HR Solutions, for instance, has a verifiable track record, case studies, as well as recognition from internationally recognised institutions like the Global Payroll Association (GPA), and an ISO data security certification.

3. Upholding international standards in Africa

To avoid compromising your operational safety, it is best to uphold the same international standards you are used to when expanding to Africa. It may be that in some African countries, these practices are not widespread yet. Even then, it is well worth it to pick and choose partners who can offer you these high standards for business. Africa HR Solutions, for instance, is ISO certified when it comes to data security. This means that we can offer the highest protection available for your data across Africa.

4. Compliance

The easiest way to compromise operational safety is to break the law...without even knowing it. Compliance with local legislation across the different African countries you expand to is crucial, and most companies try their best to respect the law. But too often, this isn’t enough – especially where multi-country expansion is concerned. Because laws change from country to country, it’s easy to for mix-ups to happen: it can be too easy, for example, to calculate overtime hours in Tunisia using the regulations that apply in Malawi. Besides, laws aren’t static: they change often and staying up-to-code with them is part of your duty as an employer and as a company expanding in an African country.

To this, add the time imperative and deadlines surrounding certain laws. If, for instance, you fail to remit taxes by a certain deadline, you may be fined. If you do not regularly pay your employees on time, you open yourself up to litigation, and a damaged employer reputation – which can be even more damaging.

5. Insurance

While you may not be able to prevent certain safety breaches fully, you can build a response in the eventuality of any breaches by subscribing to insurance policies for the more precious or more vulnerable aspects of your business. This can mean insuring your equipment against theft, your office against certain damages or specific risks... It can even mean providing life and health insurance to your employees so that they have the peace of mind they need to keep showing up at their best, physically and mentally.

6. Scale up or down quickly

Sometimes, while you may try your best to avoid all the pitfalls we have mentioned so far, incidents still occur, and you may find yourself needing to take remedial measures. This includes scaling down quickly to cut losses and stabilise the company. If you are outsourcing your payroll needs, it could be that your payroll provider isn’t able to process many offboardings all at once. At least, not on time to save you from overpayments being made – which further adds to your losses. A payroll provider, or even an Employer of Record (EOR) like Africa HR Solutions can help you navigate these difficult times with greater ease and flexibility. Our payroll solutions help you scale down or up compliantly and on time.

To find out more about how we can help you during your pan-African expansion, chat with one of our in-country experts today.