So, your spirits are high, and your enthusiasm is renewed: you have decided to expand to an African nation.
But here’s the big blocker in your path: raising capital.
Investors are notoriously difficult to convince – and can be especially more so when you are pitching for an overseas investment. Not to mention that there is often a negative bias towards Africa, causing a lack of trust.
So how do you work around this?
PEOs. Or Professional Employer Organizations. They are an indispensable tool in your African expansion toolkit.
They offer a badly needed helping hand during expansion. They take care of your payroll, onboarding, taxation, and even compliance duties, sharing in legal responsibilities – but not in proprietorship.
Here are 5 reasons why making the jump to a PEO will attract investors during expansion:
PEOs have access to competitive pricing and service packages that you, as a single entity, simply don’t. An African PEO will give you access to:
All either at much lower prices than you would get individually, or with more favorable conditions.
Besides, as your business grows and the expansion becomes more successful, you will need to manage the transition from a small company to a larger organization. In other words, you will have to manage your company’s scalability.
This can be hard to do because a larger company = a heavier workload.
At that point, you would also have little knowledge about business laws in the African country chosen for expansion… and you would also need to manage the growing workforce.
You risk becoming a jack of all trades and master of none…relegating your development efforts to the background.
A trustworthy PEO will help make the transition from a small company to a larger organization a successful one.
PEOs enable you to focus on your core business.
This means that you don’t have to split your time, expertise, money, and resources between business development, internal operations, and administration.
When you outsource to an African PEO, you no longer need to worry about:
Outsourcing to a professional service provider shows investors that you will not be held back by administrative functions. Instead, you will be able to give all your focus to growing your business and turning a profit.
Africa HR Solutions is the reputable PEO service provider you are looking for.
We serve 50+ countries across Africa and have a star-studded track record, serving Fortune 500 companies and NGOs alike across almost 20 industries.
Curious to see how we can help you make your expansion into a success? Find out more about our PEO offer here.
As part of their decision-making process, investors make risk assessments to determine just what kind of project they are getting into – and what the returns will be for them.
When expanding to a foreign country in Africa, one such risk is compliance. And when compliance issues hit businesses, the impact can be quite severe – with steep fines that undermine expansion efforts and cause losses to investors.
A trusted PEO provider will have the knowledge and expert team needed to be aware of and interpret local regulations, preventing any non-compliance issues from occurring.
Being able to reassure investors that no compliance issues will come your way is a huge selling point.
Another factor that turns up during risk assessment exercises is the question of manpower.
Where will you source talent from, how will you attract and retain them? Thanks to their experience and ability to offer competitive benefits packages among other things, PEOs are incredibly useful to companies that want to ensure that their labor force is stable and well taken care of.
Being able to reassure investors that no labor shortage/high turnover rate issues will come your way is another excellent selling point.
If, during the course of your expansion overseas, your company comes across profitable opportunities to merge with another company or to be acquired by one, PEOs can be of great help. They will:
1. Provide strategic advice prior to M&A
As indicated by Harvard Business Review, HR-related problems account for between 70 and 90% of merger and acquisition failures. An African PEO can help in this situation. By assisting with the verification, screening, optimization, and integration of both companies in order to promote employee retention, a PEO can help reduce HR risks.
2. Facilitate M&As
Other crucial HR components that the PEO can examine include:
3. Help you implement a PEO solution
No two PEO solutions are exactly alike – and your needs pre a Merger/Acquisition will also change, requiring a different solution. A trusted PEO can help you better evaluate your needs and come up with customized solutions for you.
It shows that you are prepared for all eventualities and that you have a growth-oriented mindset. This preparedness helps lessen the fear of the unknown.
Africa HR Solutions has a star-studded track record working with large corporations and small companies alike across 52 African countries! Our experience spans the course of over 13 years, so we are experts in our field. We understand your concerns and fears perfectly – and already have the solution for them at hand.
Curious to find out how we can help you reach your expansion goals? Get in touch now with any questions you may have!
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 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 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.
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 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.