There is an increasing interest in the African continent and its business expectations. Starting a business in Africa is not easy, as you must know the risks and the market. A good way to operate there is to collaborate with local partners.

These are some suggestions when starting to do business in Africa:

1. African people are keen on doing business face-to-face rather than using new technology.

2. Commitment. These African countries will note that there is a permanent commitment and not a quick and temporary business.

3. Patience. Results can be expected in two or three years.

4. Humility. Acting arrogantly in these countries is not advisable.

5. Price is a decisive factor as they have direct access to the factories.

6. Study the laws of these countries. It is necessary to know how the laws work in the countries where we expect to do business.

It is a mistake to think that in Africa, the trade processes are the same in all of the countries, as there are 53 different countries with big differences between them.

THE CANARIES AS A CONNECTING OPTION

The Canaries can be a primary connecting option, as Morocco is just 90 kilometres from the Canary Islands, which provide easier logistics, geography and even the political connection.

You should first observe if the target product or service is adaptable to the African country where you want to sell it. Therefore, it is essential to visit the country and to study the market in situ before starting the business, in order to know the peculiarities and problems that might arise.

MOROCCO, SPAIN’S NEIGHBOUR

In the sixties, several multinational car companies started to settle in Spain. Forty years later, they are committing to Morocco. The Renault-Nissan consortium is going to build a spectacular factory in the tax-free area of Tangier. On the other hand, they have the tourist activity. Currently, there is a training plan for jobs related to the hotel industry. They have a significant need for trained staff. From 2008 until 2012, around 50,000 persons will be trained in order to be employed in the tourist sector.

The Moroccan economy is experiencing a good moment, thanks to the improvement in international conditions, the increase in investments and the higher importance of the services. Thanks to the structural changes performed, last year Morocco had a growth of 7% and it is one of the top countries in the African economy. Spain is the second foreign investor country after France. Morocco has a population of around 30 million. International investment banks and some organisations such as the International Monetary Fund (IMF) indicate that Morocco is one of the most attractive countries for foreign investment on the entire African continent. Moroccan Gross Domestic Product has doubled the African average. Spain has invested in the construction sector, service industry, tobacco and it has signed agreements with Repsol for the construction of a refinery plant on the Atlantic coast. Morocco has started a huge agricultural reform and it has improved the conditions for doing business. Private property has been strengthened and work flexibility has increased. In addition, it constitutes the main market of Spanish exports to Africa, which equals 49% of our sales in North Africa. Also, it has been the tenth-largest customer of Spain, constituting the third-largest market outside of Europe, after the USA and Mexico. Trade exchanges have increased 70% in the last five years, with a direct trade volume of 2,898 million dollars.

The main Moroccan exports are related to textile manufacturing and agricultural products. The unemployment rate in 2005 was 10.9 %.

Currently, more than 500 Spanish companies operate in Morocco in very diversified sectors such as banking, tourism, telecommunications, sanitary, metallurgy, water supply, food products (sugar, rice and canned food), textile, oil & gas, real estate promotion and construction.

Mauritania is another African country with a significant level of economic activity. Growth rates are higher than 20% and, since 2006, there has been significant oil activity.

Cape Verde is also receiving a lot of investment from the Canaries.

Equatorial Guinea and Ghana are countries in which the Canaries want to expand their investments.

Tourism and construction are the most important investment sectors for the Canaries.