Growe’s Expansion in Action: Unlocking Mozambique

This article unveils Growe’s client’s* ambitious expansion plans, particularly its imminent launch in Mozambique. Emphasizing the company’s growth philosophy, we delve into the strategic approach driving this decision and share personal insights from studying Mozambique’s unique characteristics.

Read the interview with the Head of Africa Hub, Oleksandr Kernishniuk, to embark on this journey of exploration and opportunity, marking a significant milestone in Growe’s evolution.

Can you describe the plans for the new region launching?

Every region Growe launches is a part of its strategic growth. Decisions of our clients about entering any new country are usually based on one of the components: market research to discover opportunities, market insights, partnership or acquisition of the local competitors, and key hires with connections to boost the business.

Any business and any analysis of the market involves understanding why and how your product can succeed, understanding the buying motivation of your users, and figuring out how to market your product. This all leads to the “product-market fit,” and only after the scaling is possible. As a product person in the past, I believe studying the market and understanding people is a crucial part of the journey.

Not long ago, you were in Mozambique. Share your insights on the significance of understanding intercultural specificities in Mozambique for effective communication.

It is important to understand that there is no right or wrong in comparing cultures, traditions, and people’s mentality from specific regions. These things were built over centuries, circumstances, and events.

So, if you want to do business in a specific place (new geographic location) and deal with people who live there, the first step would be to “accept the reality” and learn how things are working and how people live. This will help you move faster and allow you to do things differently or even better. For instance, when you are trying to manage things remotely you might have a hard time dealing with locals, however, if you are on-site then you can quickly solve multiple things within much less time. Remember to wear formal clothes on your, at least, first meetings with partners or clients — it is considered a good tone and respect. European business casual style might be too informal for locals.

Here is the list of general rules that I usually follow in new markets:

• Respect people who communicate with you in a foreign language (if you do not use the local language).
• Remember what you need to achieve, but respect the local flow and timeline.
• If you need things to be done faster or differently, spend extra time and empathy explaining your needs.
• Learn basic local specifics. It can be local language chit-chat, a special handshake, or showing interest in the traditions.

Share your experience and main tips to understand the region’s local features while being there.

If you can “switch on” your traveler’s curiosity, it will help you explore everything you need. In my field research, I tried to speak with everyone I could, especially potential customers, and visited all the places from the fanciest to the poorest. And understand how things are working there by constantly asking, “Why?”.

Besides the classic marketing field research preparations and follow-ups my focus was on the following:

• Visiting the places where all segments of my target audience spend time.
• Talk to the people to understand their daily routine (work, life, family). Understand their life goals and milestones.
• Understand the value of money in this place’s income levels.
• Evaluate the risks (business, health, personal).
• Identify the key contact people.

Based on your experience, share your secrets for working with cross-cultural teams. What are some of the pitfalls of such teams?

Besides the multiple things that any manager has to handle, you need to understand the company culture (especially if you are a newcomer) and the local style and values. For instance, if your approach to performance management is fast, goal-oriented, and driven by KPIs, but you are joining a company based in a country that values work-life balance, with a calm mentality and family values, failure to adjust your style could result in managerial challenges and alienation from your team. It’s essential to either find a team with the same values or integrate your style accordingly.

For example, Mozambique is known for its diverse ethnic groups and languages. With multiple tribes coexisting, cultural and linguistic diversity is prevalent. For instance, only 50% of the population speaks Portuguese. Starting any business venture in Mozambique typically begins in the capital, Maputo, where international interactions are most common and communication challenges are minimized. However, it is always better for foreigners to establish a small local team. Despite all the familiarity with the country, you can’t create native marketing content or effectively target local audiences without an on-ground presence. Building a team in a new region is crucial. You have to follow the best hiring and onboarding practices with no exceptions, paying particular attention to mutual understanding.

Can you share examples of successful initiatives or strategies implemented by companies in specific regions that effectively integrated and respected cross-cultural specificities in their communication and decision-making processes?

This process is not easy, and the key lies in establishing a common language. This means making English the primary language for emails and group chats, while allowing the use of native languages for one-to-one meetings or chats. It is also important to bring highly skilled foreign people to the majority group to create trust and neutralize any negative perceptions. Companies and managers should dedicate more time to discussing countries where they have employees, including traditions and specific cultural aspects. It is beneficial to allow certain freedom and a sense of humor during these discussions, but defining the boundaries and ensuring that red lines are not crossed is essential. This creates an environment where people feel comfortable sharing perceptions and openly discussing cultural differences.

If you have hubs in foreign countries, always welcome colleagues when they visit the place for work or vacation to foster stronger connections and build bridges between teams.

Allocating a budget for team-building activities is also important, as it helps people get to know each other and establish better relationships. Ideally, the team receives a small monthly budget for activities such as dinner, bowling, go-karting, or other team activities. Additionally, coaching managers on the specifics of multicultural management is crucial.

As I mentioned, the process is not easy but not rocket science, and we see many examples of successful international teams in many companies.

In conclusion, Growe’s client’s expansion into Mozambique showcases its ambition and strategic approach to growth. Oleksandr Kernishniuk, Head of Africa Hub, emphasizes for our clients the importance of understanding local dynamics for effective communication and business operations. Oleksandr’s immersive approach to market research underscores the significance of respecting local customs and fostering diversity. We always prioritize open communication and team-building activities when we work with cross-cultural teams and business partners.

Overall, Growe is always committed to the sustainable growth of our clients with high attention to the cultural integration of team members and partners to the international business.

*Growe is an international team of experts providing consultancy and support services to clients in the iGaming, marketing, and IT sectors.