From Florida to Germany to THE MAK'ED TEAM, from there to the Côte d'Ivoire and back to Florida: that was the varied itinerary of our consultant Jennifer Augustin in April 2023. Our Africa expert travelled to the Ivory Coast for THE MAK'ED TEAM to expand our network on the ground and to deepen existing contacts in the country. The Republic of Côte d'Ivoire is economically highly attractive and an interesting location for mid sized companies: it opens up access to a region of 110 million people and has around 29 million inhabitants of its own. With annual economic growth of 8% since 2012 it is one of the fastest growing economies in the world. Many other African countries, especially in West Africa, are likewise on an economic upswing.
That is why we are convinced that internationally active mid sized companies should look closely at the continent. There is a great deal in its favour: Africa is young, has many valuable raw materials and offers mid sized companies manifold opportunities. Let us take a closer look at the economic strengths of the Ivory Coast.
Côte d'Ivoire: the gateway to francophone West Africa
The French speaking Ivory Coast is a republic with many facets. It has a diversified economy and belongs to the economic and monetary union UEMOA, which also includes Benin, Burkina Faso, Mali, Niger, Senegal, Togo and Guinea-Bissau. Because the CFA franc is pegged to the euro, the exchange rate is stable. Another plus point for German companies: German is popular on the Ivory Coast and is spoken here as a second or third foreign language. That can make working in German companies considerably easier. For companies considering a site on the Côte d'Ivoire, we see a wide range of possibilities. Economically the region offers opportunities for growth in many sectors, from agriculture to IT and digitalisation. Alongside mining, agriculture has the largest share of gross domestic product. The country is the world's largest exporter of cocoa, for instance, with a 40% share of the world market. Natural rubber is the third most important agricultural export product after cocoa and cashew nuts. New technologies are needed for the mechanisation of agriculture. Côte d'Ivoire has set itself the goal of developing the following industries: agriculture, automotive, building materials, pharmaceuticals and chemicals, textiles and the packaging industry, in order to generate value creation locally. The region has a great need for training specialist staff, for example in technical fields.
A foreign branch, a subsidiary or cooperation with Ivorian partners: there are many good reasons for mid sized companies to gain an economic foothold on the Côte d'Ivoire and to invest here for the longer term. From the economic upswing and the connection to West Africa through the diversity of sectors to the stable currency, Côte d'Ivoire is an interesting and attractive growth market. There is a sense of departure here and entrepreneurial spirit is in the air. Innovation is being driven forward, investment is wanted, practical commitment is welcome. Companies that set the course for their own internationalisation here in good time can secure an important competitive lead. In the individual steps of the internationalisation process, such as market analysis, market exploration and market entry, it is important to keep the particular social, cultural and political conditions in view. That is why Jennifer Augustin used her time on the Côte d'Ivoire intensively for a variety of meetings and gained a good overview of current developments in the region.
How can THE MAK'ED TEAM support mid sized companies with their Africa strategy?
As a management consultancy for the mid market with a focus on internationalisation, we accompany mid sized companies in their international expansion and in opening up new markets. For the individual roadmap we develop an internationalisation strategy or build on an existing one. Together with the companies we analyse: what significance does the African continent have, and which countries could be interesting locations? What strategies are there for the region? What is the situation regarding local procurement and sales markets? Which regulatory provisions and cultural conditions and particularities have to be taken into account? We advise companies on their path to internationalisation across the entire process along their value chain.
A market analysis with a risk assessment and a resource review forms the basis: what is needed to gain an economic foothold in Africa? It is important here to form an impression of the potential. We accompany companies in market entry and operational implementation, such as finding partners or building teams on the ground. In that way we develop and implement the entire internationalisation process. Holistically, sustainably and strategically.
Sources and further links:
More on internationalisation: internationalising mid sized companies
Plenty of introductory information about Africa and a good overview: Africa Business Guide: everything on the economy of Côte d'Ivoire
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