Get the Partnership Right

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Doing business in Africa means getting your business partnerships right. Partnerships make-up a disproportionate level of business success within this region, so at each stage of the business cycle a large amount of time must be spent in this regard. In our recent experience, over 50% of our professional time was spent finding, vetting and communicating with our local partners. To be successful in any African market, partnerships must be much more than a business development tool. Try to find partners who can participate in the delivery side of the business or project. It can take 6 month to a year to find the right partner, but the time is well worth it.

Here are some basic tips:

  1. Take a long term view of the partnership;
  2. Share the spoils and control;
  3. Communicate robustly;
  4. Outsource the local dynamics and coordinate to the local partner;
  5. Be sure to include your partner in the operational or delivery side of the business/project;
  6. Be sure all compensation are linked to some task;  and
  7. Do not focus just on profit share but revenue share as well.

 

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Partnership vs. Supplier



Don’t let your strategic partner become a suppler during the start-up phase of a business or large project. During this phase there is always a small core group of strategic partners (or founding group), who share the risk that comes with such a period. This is key, for a true start-up can struggle from a lack of consistent cash flows which means the business cannot be t

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