Africa lesson #3...Local knowledge is key, but tenacity is essential!

Africa is a complicated place.

The second largest population (1.2 billion) of any continent in the world, 54 countries, with more than 1,500 languages spoken. Home to the Nile, the world’s longest river, the Sahara Desert (which is incidentally almost the size of the USA) and Mount Kilimanjaro. Rich in resources too - in excess of half the gold ever mined on earth coming from Africa, along with natural wonders such as Victoria Falls and outstanding wildlife – but certainly a continent full of challenges with famine, drought, poor infrastructure, poverty, disease and conflict are prevalent across the region. But this is my home, and what a spectacular place to call home.

Given the vastness of the continent and the challenges involved, it still amazes me that many businesses and investors have the perception that Africa is easy to crack. In the last 8 years, I have spent a significant proportion of time working on projects in this beautiful continent and quickly understood that the “well-intentioned foreigner” model of arriving in a country with money, ambition and intent, but without deep local knowledge is just a road to nowhere. In almost every instance that I have encountered, the inability to navigate local business rules, import / export complexities, unique labor laws and cultural nuances inevitably end in failure. And almost without exception, those who are after a quick buck, will fail.

Every country in Africa is totally unique and being successful in business requires a focus on building infrastructure, connecting with people, a deep understanding of local laws and regulations, well developed networks and, above all, a tenacity, grit and commitment to win in the long term, rather than the short. Businesses such as Shoprite and SABMiller are just a couple of examples of long term investment and ultimately sustained success.

I remember several years back whilst working with SABMiller, arriving in Kenya as a young executive from “Head Office” excited to be empowered with developing our Global Brand portfolio. Upon arriving at the brewery, I was instantly instructed by the GM to “take my jacket off and roll my sleeves up”. All the “strategic” meetings I had planned were instantly cancelled, as the GM and I loaded the trucks with beer and went out to bars and distributors throughout Nairobi to deliver into trade. None of the 3 drivers nor loaders had arrived at work that day due to transport issues, so it was left to the GM and a corporate kid from London to make it happen. It was one of the best days of my career, and the tenacity shown by the GM to make things happen, was an eye-opener to me.

As we look to develop our Pizza Hut business across the continent, I am excited about the progress we are making and the lessons we are learning along the way. I’m fortunate to partner with some incredible franchisees, deeply connected in-country and deeply committed for long term growth. These elements are vital as we go into more geographies, with Nigeria, Ivory Coast and Sudan all to open before the end of this year. In every instance, we are partnering with businesses with deep local knowledge, with commitment and investment focused on the long-term. Moreover, in building these businesses we recognize that we won’t always get our decisions right, but if we do well by our local communities, our people and build our brand focused on the long-term infrastructure and supporting the communities we serve, then we will establish ourselves in the hearts and minds of the African people. 

I remember receiving some advice from the great Nick Fell, former CMO of SABMiller, when he mentioned that Jean-Fran?ois van Boxmeer the Heineken CEO refused to let any executive climb too high in Heineken without first gaining experience in Africa, believing that doing business in Africa is so elemental, and experience in the simple (but hard) business fundamentals are so crucial. Apologies Jean-Francois if you’ve been misquoted (blame Nick!) but I am definitely someone that believes in that wise advice. From my perspective that business fundamentals, local knowledge, tenacity and the focus on long-term success is paramount, which is why we continue to work hard with incredible local partners to become the most loved and fastest growing pizza brand - Africa's Pizza of Choice.