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Why Western Businesses Still Get Africa Wrong

Olu Abdulkareem, Senior Director, Markets & Business Expansion at Anglia Xchange. Image provided by Anglia Xchange.

After more than 20 years working on cross-border commercial projects, Olu Abdulkareem argues that Western companies often focus on the wrong challenges when entering African markets.

A few years ago, I was brought into a deal that was already falling apart.

A European manufacturer had a multi-million-dollar contract in Central Africa, but negotiations had completely broken down. On paper, the deal made sense for everyone. In practice, trust between the two sides had collapsed, and the company was close to walking away from an agreement worth millions.

What helped save the deal was not another clause in the contract. It was going back to the people involved, working with the right government and diplomatic contacts, and staying in difficult conversations until the relationship was rebuilt.

The paperwork had never been the biggest problem. The relationship was.

I think about that deal often because it captures something I see repeatedly with Western businesses looking at Africa: they devote enormous attention to the challenges that are easiest to identify, while overlooking the factors that often determine whether an opportunity actually succeeds.

The access problem is becoming easier

The UK has recently changed aspects of its Developing Countries Trading Scheme (DCTS), including rules of origin that affect how goods can be sourced and processed.

From 1 January 2026, the new Africa Regional Cumulation Group allows qualifying goods and inputs from participating African countries to be treated as originating materials when determining eligibility for preferential access to the UK market.

For businesses operating across multiple African markets, the changes can make regional supply chains more practical and reduce some of the complexity associated with sourcing and processing across borders.

That matters because one of the longstanding objections to doing business in Africa has been the perception that the continent consists of 54 fragmented markets that must each be approached independently.

The regulatory picture is changing. But regulation was never the only challenge.

Access was never the hardest part

Even with more favourable trading arrangements, most of what determines whether a business succeeds in an African market has little to do with regulation.

A shipment still has to move. A local partner has to deliver — not just once, but repeatedly. And when a deal runs into difficulty, someone needs to know whom to call.

I have watched companies with excellent products, competitive pricing and genuine demand fail because they selected the wrong local partner, misunderstood the route to market or assumed that the way they operated at home would transfer directly to a new market.

That is not unique to Africa. It can happen in any unfamiliar market.

The difference is that in a market you know well, existing relationships, infrastructure and institutional knowledge can absorb some of those mistakes. In a new market, they often cannot.

Meanwhile, businesses from China, India, Turkey and the Gulf states have spent years building commercial relationships across Africa.

A shared language or historical connection is not enough to compete with someone who has invested the time to understand how business actually gets done on the ground.

What successful market entry looks like

The businesses I have seen succeed tend to approach market entry through a series of practical questions.

Which market genuinely fits what you are selling or sourcing?

Who are the credible local partners, and have they been properly checked?

What happens if something goes wrong with the contract?

Who will you call when a relationship or transaction is at risk?

None of these questions is particularly glamorous.

A trade mission or conference can open a door. It cannot build the relationship on the other side of it.

That work happens afterwards, often far from the headlines. It is where businesses either build something that lasts or discover that an opportunity that looked attractive on paper was never commercially viable.

Relationships remain a competitive advantage

Africa’s growing economic integration and improving trade frameworks create opportunities for international companies. But market access alone does not turn an opportunity into a successful business.

Companies need people who understand local markets, reliable partners, practical routes to market and the ability to manage problems when they arise.

That requires time and presence.

For British businesses in particular, the UK’s evolving trade arrangements with African markets provide an opportunity to rethink how they approach the continent. But the companies most likely to benefit will be those that combine the improved access with a serious investment in local knowledge and relationships.

The rules may make it easier to enter a market.

They do not remove the need to understand it.

About the Author

Olu Abdulkareem is Senior Director, Markets & Business Expansion at Anglia Xchange. He practised international law for more than 20 years, including as a partner, before moving into international business development across the oil and gas, steel and mining sectors.

He has worked on cross-border commercial projects involving governments, multinational companies and private investors across Africa and Europe and founded Anglia Xchange to help British businesses expand into African markets through local partnerships, commercial structures and on-the-ground support.

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