From Florida to Germany to THE MAK'ED TEAM, then on to Côte d'Ivoire – and back to Florida: That was the varied itinerary of our consultant Jennifer Augustin in April 2023. Our Africa expert traveled to the Ivory Coast on behalf of THE MAK'ED TEAM to further expand our local network and deepen existing contacts in the country. The Republic of Côte d'Ivoire (Ivory Coast) is economically highly attractive and an interesting location for medium-sized enterprises: It provides access to a region of 110 million people and has around 29 million inhabitants itself. With an annual economic growth rate of 8% since 2012, it is one of the fastest-growing economies in the world. Many other African countries, particularly in West Africa, are also experiencing an economic upswing.
This is why we are convinced that internationally active medium-sized companies should engage with the continent. There are many reasons for this: Africa is young, possesses many valuable raw materials, and offers medium-sized enterprises 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 multifaceted republic. It offers a diversified economy and is part of the West African Economic and Monetary Union (UEMOA), which also includes Benin, Burkina Faso, Mali, Niger, Senegal, Togo, and Guinea-Bissau. Since the CFA franc is pegged to the euro, the exchange rate is stable. Another plus for German companies: German is popular in Côte d'Ivoire and is spoken there as a second or third foreign language. This can significantly facilitate collaboration within German companies. For businesses considering a location in Côte d'Ivoire, we see diverse possibilities. Economically, the region offers growth opportunities in many sectors, from agriculture to IT & digitalization. Agriculture, alongside mining, accounts for the largest share of the gross domestic product. For example, the country is the world's largest cocoa exporter, with a 40% global market share. Natural rubber is the third most important agricultural export product after cocoa and cashews. New technologies are fundamentally required for the mechanization of agriculture. Côte d'Ivoire has set itself the goal of developing the following industries to generate local value: agriculture, automotive, construction materials, pharmaceuticals and chemicals, textiles, and the packaging industry. The region has a great need for the training of skilled personnel, for example in technical fields.
Whether it is a foreign branch, a subsidiary, or a collaboration with Ivorian partners: there are many good reasons for medium-sized companies to gain an economic foothold in Côte d'Ivoire and invest there for the long term. From the economic upswing and the connection to West Africa to the diversity of industries and the stable currency, Côte d'Ivoire is an interesting and attractive growth market. There is a spirit of optimism here, and entrepreneurship is in the air. Innovations are being driven forward, investments are desired, and practical engagement is welcome. Companies that set the course for their own internationalization here in good time can secure an important competitive advantage. During the individual steps of the internationalization process, such as market analysis, market exploration, and market entry, it is important to keep the specific social, cultural, and political framework conditions in mind. Jennifer Augustin therefore used her time in Côte d'Ivoire intensively for various meetings and gained a good overview of current developments in the region.
How can THE MAK'ED TEAM support medium-sized companies with their Africa strategy?
As a management consultancy for the "Mittelstand" with a focus on internationalization, we support medium-sized companies in their international expansion and the development of new markets. For the individual roadmap, we develop an internationalization strategy or build upon an existing one. Here, we analyze together with the companies: What is the significance of the African continent, and which countries could be interesting locations? What strategies exist for the region? What is the situation regarding local procurement and sales markets? Which regulatory provisions and cultural conditions and peculiarities must be taken into account? We advise companies on their path to internationalization throughout the entire process along their value chain.
As a basis, a market analysis with risk assessment and resource determination is carried out: What is needed to gain an economic foothold in Africa? It is important to get an impression of the potential here. We accompany companies during market entry and operational implementation, such as partner searches or building local teams. In this way, we develop and implement the entire internationalization process. Holistically, sustainably, and strategically.
Sources and further links:
More on the topic of internationalization Internationalizing medium-sized companies
Find initial information about Africa and a good overview here: Africa Business Guide – Everything about the economy in Côte d'Ivoire
.png)
.png)