SPECIAL REPORT
financial access to the population has been affordable
mobile payment systems that have penetrated even the most
rural parts of Africa. Innovative solutions to respond to the
unbanked population in the region has opened the fl oor to
digital services industries to think harder about channels that
can facilitate cross-border (national and regional) transactions
with ease through seamless payment gateways. Terms such
as ‘cashless’ and ‘cash light’ are buzzing in the ears of
enterprises today. In the same breath, governments are putting
in place regional regulatory frameworks that will not stifl e
innovation but will clearly respond to the needs of the banks,
telecommunication industries, vendors, and consumers.
Go local sourcing
My personal favourite is the strengthening of local supply
chains in the region. Africa has slowly evolved to appreciate
its own products and services, given the strong injection
of technical and financial support from public-private
partnerships to improve standard compliance of goods and
services that are locally grown, manufactured or catered for.
Going local is the new cool, as they say.
This also applies to the incentives you would get as
a business that has the vision to support and boost local
capacity and production. As a region, we encourage business
investments that show sustainability in the sectors and
markets they operate in. The benefi ts of local sourcing and
working with local distribution channels in the COMESA
regio n include – reduced cost of sourcing, consistency in
supply, reduced time while sourcing, sustainable relationships
with suppliers, good reputation for the companies and last
and of course of the best, increased profi t margins.
Let’s go shopping
Consumer goods ranging from foodstuffs, beverages,
toiletries, cosmetics, electronics, hygiene products,
childcare products and the like are some of the biggest
products that move in the region. The strongest distribution
channels for these are supermarket chains, online stores for
middle-income earners and kiosks and common market stalls
for Bottom of the Pyramid consumers. While COMESA is
quickly moving into the middle-income range, it should be
noted that consumer habits in some countries range from
sophisticated to the simplest distribution channels. The
supermarket industry has gone through some volatile times
over the past ten years, where decisions such as market
expansion, and strong supplier management have plagued
the sustainability of some businesses. However, it has
become clear that companies such as Shoprite, Choppies
and recent entrant in sub-Saharan African markets Carrefour,
have a handle on the market dynamics – as they continue
to expand into Eastern Africa. As the market grows with
an increasing buying power, so does the demand for more
products which are durable, cost-effective and consistently
available. There is clearly a need for more distribution
channels in the region, and partnerships with locally owned
enterprises is the most lucrative option, as the market
increasingly enjoys locally sourced or affi liated products
and services.
We seek to improve the
effi ciency of tourism
operators to provide
transboundary tour
packages across the region
that are effi cient, affordable
and offer a lifetime
experience!
What’s next door? Let’s take a tour
“One of the most incredible journeys I have had was
visiting the Gorillas,” one of my members told me. I asked
him why. “It was not just the fact that I was standing in the
presence of one of the most powerful and rarest species on
the planet, but also that the green luscious vegetation seems
untouched. I literally trekked to see this species and I was
greeted with the vast land from one end to another, agricultural
resources that are spilling over from the ground. I was then
introduced to the wholesome, genuine nature of the people
who taught me about things I had forgotten about. I felt like
I was living an experience that was purely unique to African
soil.” This is Africa.
The COMESA Tourism and Wildlife Heritage Handbook,
“One Market, Countless Destinations” (found on http://
comesabusinesscouncil.org/Handbook/index.html) takes
you on a safari through 19 countries and helps inform your
decision on the desired tourism destinations in COMESA.
We seek to improve the effi ciency of tourism operators
to provide transboundary tour packages across the region
that are effi cient, affordable and offer a once in a lifetime
experience! That is not all – as a business investor, you have
the opportunity to also consider hotels, high-end cottages,
resorts and lodges in the region.
Well then, I do believe you have an idea of doing business
in Africa. Now it is time for you to decide. I would bet on
the winning horse.
* The author is the Chief Executive Offi cer, COMESA
Business Council
COMESA• 2018 • 9