Skilled Migrant Professionals February 2015 | Page 21

Tips on starting and sustaining a successful
business in Africa, the Zambian
experience: Part 1

O

n a recent business trip to Zambia here are some
of the questions that my Australian colleague
asked me on the way: So you have lived away
from Africa for a long time - do you still speak fluent
African? I am so excited about my first trip to Africa. I
have never seen elephants and lions outside a zoo – will I
be safe there? Are you sure we will come back alive? I have
brought a wrist watch and a bottle of wine for the CEO; do
you think this will be sufficient?
In central Africa lies the landlocked country of Zambia. This former
British colony is surrounded by eight neighbours including Zimbabwe, Botswana, Namibia and Tanzania. With a population of around
14 million, Zambia is home to one of the seven natural wonders of
the world and the country’s main tourist attraction - Victoria Falls.
Zambia is a democratic country which respects the rule of law,
having successfully and peacefully transitioned through three political parties and five Republican Presidents since its independence
from Britain in 1964. Often people ask how Zambia has managed to
change governments without any bloodshed. I think the answer is
embedded in Zambia’s motto: One Zambia, One Nation.
Being one of the world’s largest producers of copper, Zambia’s
economy is heavily dependent on copper mining. Its output was
only recently eclipsed by its neighbour, The Democratic Republic of
Congo as Africa’s largest copper producer. Copper production forms
the biggest chunk of Zambia’s GDP followed by agriculture.
The introduction of free trade a couple of decades ago has seen a

Tips of doing business in Africa
• Listen more and talk less
• Phone calls and emails do not work
• Free drinks can be dangerous, buy your own
• Play to their game but remain professional
• “No” does not always mean “no”, and vice versa
• A broken piece of wood can be an opportunity

by
Melvin Hachuma
Accountant, business
administrator and
investment advisor
on international
business.

Business

Doing business
in Africa

number of foreign investors
not only engaged in mining
but also in other sectors such as
agriculture, information technology, manufacturing, transport and service industry.
With business saturated in the West and
Asia, foreign investors are now looking for expansion
outside their countries with Africa the emerging market for investment. Australia alone has more than ten mining companies operating in Zambia including First Quantum Minerals and Barrick Gold
Corporation.
Africa is among the richest continents in the world in terms of
labour and natural resources. However, a great tragedy is that nearly
one sixth of the people in Africa live a dollar-a-day existence, teetering on the precipice of death due to starvation.
How can a continent be so out of step with the march of progress
when other continents are making significant progress in all areas of
life? How can this challenge be ameliorated? Where is the problem?
Is it with the locals or the foreign investors? Why have African business opportunities been neglected?
Most foreign investors think that Africa is one country and hence
generalise their assessment of opportunities. The media has had a
part to play in misconceptions as well.
Africa is not a country but a continent of 54 countries. The biggest
challenge that most investors have is that they think they know it
all, they know Africa well because the media has told them so, they
know best how to do business in Africa because they are successful in
Australia, England, USA and China they think they can use the same
model in Africa.
The one-size-fits-all approach does not work. To do business outside your home, one has to take into consideration several variations
including cultural differences that exist between countries.
Look out for my next article where I will be using my
Zambian experience to expand on these tips as well
as answering the questions above.

February 2015 | www.smpmagazine.com.au

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