Clearly the selection of hub location will differ depending on the industry and risk profile of the corporation , but the principle can be adapted across sectors and locations and is used by a number of leading African and international companies to drive operational efficiency and mitigate risk .
Use the right partners Companies can and do take a range of different approaches to partnering in Africa . For those seeking to enter or expand in the region , there are no shortage of options available at any phase from market selection and strategy inception to operalisation and tactical execution on the ground .
While the market norms may differ , much of the same logic used when selecting partners or vendors elsewhere in the world can be applied to partner or vendor selection and management in Africa . Selecting the right partners based on expertise , service levels and ethics is of course the first prerequisite , however minimising the number of partners on the ground is also important in ensuring consistency and equivalence in operational standards and delivery .
Using an outsourcing approach to real estate partner selection and tactical delivery is increasing amongst international corporations both in Africa and more broadly , as they seek to derisk , achieve economies of scale and benefit from consistent and standardised service levels in multiple markets and locations .
Use integrated real estate solutions While the real estate and facilities solutions will vary widely depending on the specific corporate requirements , a growing number of integrated or self-sufficient solutions are being seen in African real estate markets .
Serviced offices is one segment of the market that can appeal to those seeking to establish a smaller foothold in key hubs , with the advantage that issues including IT connectivity , energy and facilities management and security are integrated , potentially allowing greater speed to market . Such speed to market will of course come at a premium , however it is a cost a range of companies are prepared to accept for the establishment of smaller facilities .
A number of more sophisticated developers are also exploring more integrated real estate solutions which incorporate aspects such as access to power and facilities management .
A full understanding of who you are dealing with , particularly in the developer and landlord space is a
www . reimag . co . za further factor which can bring significant benefits . It can be preferable for multinationals to seek landlords where non- performance has recourse outside of the operational country . Should issues around performance emerge this can make resolution quicker and more efficient .
Legal , regulatory and market norms in Africa will often have a specific and tangible impact on real estate strategy and options
Embedded risk mitigation The most successful corporate growth strategies in Africa usually take a holistic and longterm approach and consider an extensive list of operational considerations across the full lifecycle of the business . Appropriate real estate and facilities are a small if important part of a wider jigsaw encompassing strategies around market selection and entry , talent attraction and retention , business continuity , infrastructure , and a host of other trading , due diligence and legal considerations .
Embedding risk mitigation at every stage is one of the most important keys to success . Projects are likely to take longer , cost more and require greater flexibility .
Selecting the right partners can help mitigate many of the operational and real estate risks which occur throughout the process of corporate growth , but robust internal risk mitigation processes and due diligence are also essential and should be fully embedded in decision-making .
There is no doubt that the future is bright for the African continent , even if many markets and sectors are still in the early stages of their evolution . While a host of operational obstacles will continue to challenge international corporations as they seek to grow in Africa , robust due diligence on the ground and in person , remains perhaps the most important way to ensure optimal real estate and operational outcomes . Those companies able to focus on the long term and manage their risk and investment accordingly are most likely to reap the greatest rewards .
RESOURCES
Carroll , T , Williamson , K , McAuley , M . ‘ Corporate Entry Into Africa : A New Chapter ’,
Jones Lang LaSalle ( JLL )
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