Why business fail in Africa?
Businesses in Africa have failed because of the lack of understanding about the culture and the market.
The culture in Africa is different from what we see in Europe or America. They are more family oriented and it is not easy to convince them to buy your product when they can’t afford it.
The market is also very different from what we see in Europe or America. When a new product is introduced, it takes a while for people to get used to it.
This section will focus on the challenges that businesses face in Africa. We will explore some of the reasons why they fail and what can be done to overcome them.
The first challenge is that Africa is a continent and not a country, which means there are many different markets in different regions with diverse cultural norms and practices. This makes it difficult for companies to succeed because they have to tailor their products and services to meet the needs of each individual market.
The second challenge is that there are many barriers for international business in Africa, such as corruption, lack of transparency, high tariffs, lack of infrastructure and poor access to finance. These barriers make it difficult for foreign companies to conduct business in Africa because they have no legal certainty or predictability about what might happen next.
The third challenge is that there is low-quality management talent in African countries which makes it difficult for companies to find qualified people who can lead them through the challenges they face here.
The fourth challenge is that Africa has a very young population, which means they are in the process of building the infrastructure that they need while simultaneously developing their labor markets. As a result, many companies struggle with finding skilled employees to fill these positions.
Interesting reading
https://www.statista.com/statistics/1295678/startup-failure-rate-in-africa-by-country/
