Safety during expansion in Africa: how to make sure you are protected when growing your business
Which founder and organisation leader poised on expansion hasn’t heard obscure stories about business in Africa? Many ill-founded stories make the rounds, but as with every other country, risk exists when doing business in Africa.
In this article, our consultants show you 8 methods you can use to maintain safety as you expand to a foreign African country:
1. Vet and partner with trusted suppliers
When expanding operations, especially in new or unfamiliar African jurisdictions, your suppliers and service providers heavily determine how little or how much risk you are exposed to. This is why you must choose partners with proven reliability and strong local networks.
For example, in Nigeria's manufacturing sector, firms that used local ISO-certified logistics companies reported 23 percent fewer delivery delays, according to PwC Nigeria's 2024 supply chain report.
We advise:
- Performing background checks
- Confirming corporate registrations
- Requesting references from other businesses they have served in your industry
In higher risk areas, you may even consider engaging a regional law firm to vet critical suppliers.
2. Assess track record and in-country experience
What matters more than just global credentials? A service provider’s experience in your specific target market. For example, a payroll processor that excels in South Africa may not be as efficient or accurate for operations in francophone West Africa. That is, if they do not have the required localised expertise.
A good track record also helps you avoid regulatory missteps and costly inefficiencies during setup.
With its large reach spanning over 46 African countries, proven track record, and affiliation with the listed AdvTech group, Africa HR Solutions is already a partner of choice to more than 400 companies in Africa.
As an EOR and payroll partner, we minimise risks through a localised approach, and by maintaining international standards across Africa.
To find out more about how we can help you, send a message to one of our consultants.
3. Prioritise recognised certifications and awards
Awards and certifications can be useful signals of credibility, provided they are from respected organisations. Look for ISO certifications (such as ISO 27001 for data security or ISO 45001 for occupational health and safety), or recognition by local chambers of commerce or industry bodies.
Working with such recognised firms reduces your exposure to compliance failures and quality disputes. Besides, as an international organisation, it helps you keep the same international standards of service locally, in Africa.
4. Ensure strong data protection practices
Data governance and privacy are major concerns, especially with the increasing digitalisation of operations across African markets. Over 25 African countries now have standalone data protection laws, including Nigeria, Kenya, Rwanda and Egypt. Failing to comply can result in fines, reputational damage and even criminal penalties.
Make sure your partners are compliant with both local and international frameworks, such as the Nigeria Data Protection Act (NDPA) or the General Data Protection Regulation (GDPR) if you process data related to the EU. Ask if they conduct regular audits, encrypt client data and have a data breach response policy.
5. Work only with partners who are dedicated to compliance
Regulatory compliance is not optional. It is a continuous obligation that affects tax, labour, environmental and trade requirements. It is not enough for any partners you work with to understand local regulations. Rather, they should proactively monitor changes and adapt accordingly.
For example, South Africa's Employment Equity Amendment Act (2025) introduced sector-specific transformation targets. Companies operating with non-compliant HR partners risk fines or disqualification from government tenders. The same principle applies across tax, customs, and employment law compliance in markets like Morocco, Angola or Côte d’Ivoire.
Ask whether your partners offer legal updates, have compliance officers, or provide support with filings and audits.
6. Build in local legal and cultural knowledge
Africa is not a monolith. Expanding into Senegal requires a different approach to risk and safety than expanding into Ethiopia. Labour laws, business culture and contract enforcement vary widely. Language also matters: your partner’s ability to operate in French, Arabic, English or Portuguese can influence your business’s success in specific countries.
In Rwanda, for instance, businesses benefit from a straightforward registration process, but land acquisition and tax compliance require working with locally registered experts. In francophone countries, civil law systems dominate, which means agreements and obligations must be documented with legal precision.
7. Use contract safeguards and service-level agreements
Even with trusted partners, formal legal protections are essential. Contracts should clearly define:
- Responsibilities
- Penalties for non-performance
- Data handling obligations
- Exit clauses
Where possible, include service-level agreements (SLAs) with measurable performance indicators.
8. Have contingency plans in place
Even with the best partners, risks remain. Political instability, regulatory change or supply disruptions can affect operations. Having an alternative supplier or emergency response plan protects your business continuity.
In 2024, several firms operating in Sudan and Niger learned the importance of contingency planning after abrupt political transitions forced the suspension of commercial activities.
Partner with an experienced EOR in Africa for a safe expansion
ISO 27001 certified, with 15 years of experience in the continent and a track record of 400+ companies supported in Africa, Africa HR Solutions is a choice EOR and payroll partner across Africa.
