I am going to reveal something that will be very important to your success, yet it is a widely overlooked obstacle for doing business in Africa on the ground. It affects you as a start up equally as it hinders the growth of many well- established companies, but hardly anyone is talking about how to address it.
What do you think are the biggest obstacles when doing business in Africa? Corruption, bad governance, security risks, or poor infrastructure?
Well, in my recent article “The 3 MAIN Africa Business Obstacles You Need to Overcome”, I summarised the outcomes of an Africa Survey 2014 released by Good Governance Africa (GGA) after they compiled the responses of several firms they interviewed on the ground. And I provided potential solutions to mitigate their negative impact. Those main obstacles were: 1. Unreliable or insufficient electricity, 2. Corruption, and 3. Difficulty in getting bank loans. So you were probably pretty much right on the money with your suggestions, right?!
But I am of the opinion that one obstacle is repeatedly overlooked!
Do you know what that is?
Let me tell you:
It is the lacking productivity of your employees!
Now here is the thing: Many start-up entrepreneurs and established CEOs mention exactly this as a major problem that they are dealing with on a daily basis. They report that low work ethics are seriously impacting on the progress and productivity of their company. But the topic is mentioned in such a passive manner that it is usually not discussed in more detail. Everyone seems to be very aware of external obstacles…infrastructure, corruption, and access to finance, while this internal yet wide-spread aspect is rarely brought into the forefront; in short, no-one really suggests appropriate solutions.
Just a few days ago, I listened to Bob Proctor’s videos and he said something along those lines: “Your employees are your biggest assets. Imagine you owned a top hotel, you will have a wonderful building and interiors, but it’s the staff that welcome you and serve you. When I recently visited a hotel and I asked one of the staff a question, he did not tell me, he showed me, and this sets the hotel apart. If you take out the staff, you don’t have a hotel or a business, you just have a building filled with furniture.”
The challenge & risks
We hear worrying accounts from African start-ups across the continent: Lack of enthusiasm and effectiveness among your employees can really impede the success potential of your business, it can negatively affect your brand, you may miss out on sales, and as a result your growth is delayed. But the risk is even greater than that. A poultry farmer in Kenya reports he had to close down his first business, because employees started to sell the chicken behind his back telling him they died. And on a fish farm in Nigeria, they served themselves with fish (maybe to sell it on), and the owner wondered why his business was not growing. Another business owner (I forgot where she was based) said in an interview she had trained her employees, only for them to ‘run away’ soon after to open their own business with what they had learned from her.
And, when you read about financial fraud across banks operating in Africa, one report I read recently suggested that a great deal of fraud was not carried out by some kind of dodgy underground networks, but by the banks’ own employees!
This is not unique to Africa, but it is correct to say that employees’ work ethics are overall at a low. Many businesses in Africa suffer as a result of it, and company owners such as yourself need to make sure to fix that right from the get go!
What you can do to avoid such major setbacks
1) Be aware!
It starts with awareness. Many company owners will put a lot of their focus on external obstacles, but they are oblivious towards the impact low staff productivity has on their business, or they are helpless. Hiring a new round of staff every couple of months does not solve the problem, you need to apply internal long-term solutions and systems (and a pure on-the job training for staff won’t deliver on that)!
2) Change your attitude first
We often are quick to jump to discredit the working moral or attitude of some African workers and employees, but we should not forget that they are a reflection of what is put into them. They are often regarded as cheap labour who should be glad to have a job, and who should be extra-grateful when they receive some job training. But what you really need to achieve is to integrate them in your vision and truly regard and invest into them as people of great value to your undertakings! Then in time, I believe, you will get more value in return.
3) Change their paradigms
The way African work forces and employees have been treated for a long time, across countries and sectors, has created certain belief systems on both sides that are being both consciously and unconsciously re-enforced up to this day. In Africa, we are collectively used to the attitude of an authority figure doing his thing with a minimum of meaningful rewarding communication or positive encouragement, because that is viewed as some sign of weakness. Our awareness is shaped by authoritarian colonial powers, African presidents and politicians, community elders, teachers, fathers…, and for a long time, exploitative businesses…..and those ‘beneath’ are simple asked or ordered to do a,b,c – no questioning, no connecting . This is why the often dysfunctional boss-employee dynamic is in my opinion sitting deep.
Fact is however, you are in charge, and a fruitful relation with a new employee does not start by telling them what to do and how much they will earn, and it should certainly not end there. Make them a part of your vision and success story, lead by example, provide diversity whenever possible, respect their skills and preferences, give them incentives, build team spirit, set clear expectations, reward good behaviour or results, offer a career ladder, company shares, or additional income during special projects, and build a company culture that you pro-actively strengthen through visualization, affirmations, and team slogans.
It can be a lot to take on for any start-up, but integrating at least aspects of it will be worth it.
4) Form rewarding relations for both sides
Anne M. Mulcahy, former chairperson and CEO of Xerox, once said: “Employees are a company’s greatest asset – they’re your competitive advantage. You want to attract and retain the best; provide them with encouragement, stimulus, and make them feel that they are an integral part of the company’s mission.”
Give your employees as much attention as you put into product design, logistics, and sales systems. It’s a long-term process, but it’s one of the best investments you can make for your African business early on. Integrate your employees in a way they become part of your successes and your failures, put in the effort to break down old belief systems and establish new ones that are in harmony with your values and vision.
The discussion around this topic is in many cases much more complex, but there are things you can do – be aware of it.
Extra tip: A business idea. Establish yourself as an expert on employee and company productivity in a certain African market! Do some intensive research on the matter for a few months, attend some online or offline courses of leading experts in the field (those of you in the US will have no problem to find them!), and you will know a great deal more than the majority of Africa’s business owners. Position yourself and get paid for consultation, staff training, and related seminars !
I think it is an interesting topic and we would love to hear your thoughts or learn more from your experiences! Just comment below!
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