Local Business Partners Are Key to African Investment

By partnering with a local business in Africa, foreign companies can better understand local trading rules and take advantage of local incentives.
Published: Fri 05 Jun 2015

In a live studio interview at African Utility Week, Daniel Swanepoel, Managing Director, Daniel John Consulting, advises investors that the time for investing in Africa’s electricity sector has dawned. However, he does suggest that foreign investors take the time to understand the market rules of each African country as these often vary and can be rather complex.

Local Power Sector Expertise opens doors

To work around various challenges, Swanepoel suggests working alongside a local partner with extensive market experience and one that can be trusted. The local partner will open doors quicker as he or she understands the local market better. Also, many countries like South Africa have local requirements so it makes sense to partner up with a local business. He adds that it is a good idea to set up a manufacturing business with a local as one can then take advantage of various tax breaks, manufacturing grants and incentives. Local banks will also be more willing to assist with finance.