We interviewed Nick Alexander, director of Business Development for Africa at Kwikspace Modular Buildings (Kwikspace) to find out what some of the hurdles are in doing business in Africa, and the trends driving Africa’s building industry.
Is there a different business model you took to enter the African market?Absolutely, yes. We make sure that we follow our existing clients wherever they need us and we also plan for careful entry into specific countries. The thorough management of commercial and country risk are also critical to our success.
Is South Africa still the gateway into Africa?It’s the gateway for Southern Africa, yes. But for most businesses, Kenya and Tanzania are better suited for East Africa, while Ghana is a good entry point for project work in the west. In our type of business, logistics are extremely important and you really can’t manage this from far off. We need our local suppliers and partners and we value the people we work with, especially in other countries and regions of Africa.
What hurdles do companies face when doing business in Africa?I think there is often a lack of understanding of local business conditions, each country is completely unique in that way. Often companies fail to use local resources and have no long-term commitment to a market. Patience is key, as many businesses expect results too quickly. There are also, in certain instances, logistical and bureaucratic issues.
What trends have been driving Africa’s building industry in the last five to 10 years?In the early to mid-2000s mining was very strong but has gradually slowed, with reduced demand for commodities. We are also seeing a current backlog of infrastructure such as roads, rail, ports and dams.
How would you describe the level of competition while doing business in Africa?It depends largely on the country and the different business sectors. Many companies view Africa as a continent of ‘easy opportunities’, but this often leads to failure. In reality there are very few companies with enough long-term commitment to understand regional markets.
What advice would you give to investors and companies who are entering the African market for the first time?Investigate all opportunities thoroughly and find local companies you can work with. Assess risks and commercial matters scrupulously. Most importantly, give it time.
Nick Alexander is director of Business Development for Africa at Kwikspace Modular Buildings (Kwikspace). He has dedicated his career to business development on the continent. Alexander is equipped with significant experience in these fields, with time spent as business development director for sub-Saharan Africa at Fluor. He holds a Master of Business Administration (MBA) from the University of Witwatersrand and a Postgraduate Diploma in Business Administration (PDBA) from the Gordon Institute of Business Science. Alexander has worked with international clients throughout Africa on large-scale projects.
