How should multinationals approach their Africa strategy?

Recent exits of multinational corporations in Nigeria and across Africa have brought to light the complexities of operating in the African market. Alice Usanase, an expert on Frontier Market Investments, believes that while challenges exist, Africa remains a significant market for investors and multinationals can succeed with the right strategy. In a recent interview with CNBC Africa, Usanase shared valuable insights on how multinationals can approach the African market effectively. She emphasized the importance of understanding the unique context of Africa and adopting a localized approach to business operations. Usanase explained that one of the key factors for success in Africa is to invest in the long-term game, focusing on creating products that are accessible to local consumers. She highlighted the need for multinationals to invest in local talent and infrastructure to overcome barriers and navigate the dynamic business landscape of Africa. Usanase also addressed the challenges faced by multinationals in creating US dollar value within the African market. She pointed out that companies need to adapt their strategies to align with the local context and work closely with local partners to enhance the value of their investments. Additionally, Usanase discussed the risk terrain in Africa, acknowledging the currency and political risks but also emphasizing the evolving nature of the region. She stressed the importance of having a higher risk appetite and a local-focused approach to mitigate risks and maximize opportunities in the African market. Overall, Usanase's insights provide valuable guidance for multinationals looking to establish a successful presence in Africa, emphasizing the need for long-term commitment, localization, and strategic partnerships in navigating the complexities of the African market.