African Businesses Need to Compete on the Global Stage

Despite the continent’s abundant resources, skilled workforce, and burgeoning entrepreneurial ecosystem, it remains perplexing that many African businesses struggle to scale and penetrate markets beyond their home countries—let alone challenge global competitors.

Africa possesses the potential to excel in numerous sectors, yet local businesses often find themselves trapped in a cycle of limited competition, unable to expand their reach either continentally or globally. What factors contribute to this phenomenon?

Africa is rich in resources and hosts well-developed industries, including automotive manufacturing, fintech, agriculture, and apparel. However, many African brands find it difficult to transcend local success. This issue is particularly evident in the automotive sector. Manufacturers such as Innoson, Nigeria’s first and largest car company, and Kenya’s Mobius Motors, which produces affordable vehicles tailored to the continent’s needs, exemplify Africa’s capabilities.

Yet, despite catering to local markets, these brands remain largely confined to their respective countries. Why aren’t their vehicles more prevalent on the roads across Africa or in international markets? The challenge extends beyond global competition. African products often struggle to cross borders even within the continent. For instance, while Innoson’s vehicles enjoy popularity in Nigeria, they are not widely available in other African nations such as Kenya, South Africa, or Ghana.

The root causes include a lack of cross-border distribution infrastructure, weak trade agreements, and bureaucratic red tape, which collectively create substantial barriers to scaling products across Africa. Additionally, stringent import regulations in certain countries favour foreign brands, leaving African manufacturers with limited opportunities to compete fairly in these markets. Consequently, even when African products are designed to meet local needs, they encounter significant hurdles in reaching broader markets.

The fintech sector in Africa exhibits a similar paradox. Innovations from companies like M-Pesa in Kenya, along with fintech startups such as Paystack and Flutterwave, have transformed financial interactions for millions of Africans through mobile payments and money transfers.

However, despite these advancements, these platforms encounter difficulties in expanding beyond African borders. While M-Pesa has achieved remarkable success in East Africa, it remains largely absent from regions outside the continent. Similarly, platforms like Paystack and Flutterwave, although successful in specific African markets, face challenges in their efforts to penetrate other continents.

This situation arises from two primary factors. First, these African platforms have limited access to global financial networks and encounter complexities in navigating international regulatory environments. Second, similar to the automotive and apparel sectors, penetrating other African markets presents challenges. Many countries within Africa have established their own mobile payment solutions, complicating the ability of foreign (even local) companies to dominate regional markets. Moreover, competition from foreign tech giants, inadequate infrastructure, and the absence of harmonized regional regulations often impede the growth of African fintech solutions, restricting their scalability.

The textile and apparel industry in Africa provides further insight into the challenges of scaling. Countries such as Ethiopia, Lesotho, Eswatini and Kenya have long manufactured textiles for global brands like Levi’s and Jeep. With skilled labour and resources available to produce high-quality garments at competitive prices, one would expect African apparel brands to thrive. Yet, they often fall short compared to their global counterparts, such as Nike and Adidas.

Despite the growing recognition of African fashion on the international stage, local brands struggle to achieve global prominence. Designers like Nigeria’s Lanre Da Silva and South Africa’s Maxhosa exemplify creativity and talent but have yet to reach the scale of established global brands.

This shortfall can be attributed to similar issues: insufficient investment in infrastructure, distribution, and consistent brand messaging. Additionally, many African nations still heavily rely on foreign-made products due to perceived quality and lower costs, even when local alternatives exist.

IV ZEAL VITAMIN

The difficulties faced by the apparel industry reflect a broader issue—African-made products encounter the same barriers when attempting to penetrate other African markets. The prevalence of imported second-hand clothing and the dominance of multinational fashion companies position African apparel brands against formidable global competitors with established consumer trust.

To succeed, African brands must focus not only on quality and innovation but also on cultivating stronger regional and continental trade networks that facilitate product access for consumers across the continent.

The question is no longer whether African businesses possess the potential to compete on a global scale; rather, it is about how they can overcome the obstacles that hinder their growth, both within Africa and internationally. Here are four key solutions to ensure African products can access markets beyond their borders and succeed on the global stage.

Strengthen Regional Integration:

The African Continental Free Trade Area (AfCFTA) presents a significant opportunity to dismantle trade barriers and harmonize regulations across the continent. By reducing tariffs, simplifying trade processes, and encouraging economic cooperation, AfCFTA could provide African businesses with the chance to expand easily into neighbouring markets. Cross-border trade should be incentivized, and businesses should take advantage of this agreement to enhance intra-Africa trade, creating a more interconnected and competitive continent.

Improve Infrastructure and Logistics:

The lack of adequate infrastructure remains one of the most critical barriers to African businesses’ growth. Limited transport options, poor road networks, unreliable power supply, and underdeveloped logistics systems make it difficult for companies to scale efficiently. Governments, private sector partners, and international organizations must collaborate to invest in infrastructure projects that ease the flow of goods across Africa. The improvement of regional ports, roads, and rail networks will create cost-efficient logistics channels and help businesses move products quickly and reliably, not only across Africa but also for global exports.

Develop Cross-Border Digital and Financial Systems:

For African fintech companies to scale beyond their home markets, cross-border payment systems and financial integration must be a priority. African financial institutions should collaborate to create interoperable platforms, harmonize regulations, and improve digital infrastructure. This includes easing access to financial services, creating more inclusive banking solutions, and simplifying remittance processes. Efforts to integrate fintech solutions within the broader global financial ecosystem will also provide the necessary framework for African companies to compete globally. The African Union (AU) and other regional bodies should work on creating cohesive financial protocols that allow for seamless transactions between African nations and the rest of the world.

Foster Stronger Branding and Marketing Strategies:

African businesses must shift from producing high-quality products to building strong global brands. This includes investing in marketing, engaging in storytelling, and focusing on emotional connections with consumers across different regions. African companies need to highlight their cultural uniqueness, craftsmanship, and innovation through targeted campaigns that resonate with global consumers. Building brand equity in Africa is one thing; creating brand visibility and loyalty on a global scale is another. This requires not only investment in traditional and digital marketing but also the ability to connect with a global audience that appreciates African values and creativity.
It’s not all gloom and doom though. Several African businesses have successfully expanded beyond their home countries and managed to compete on a global scale. These companies have leveraged innovation, strong brand identity, and strategic partnerships to make their mark internationally. Here are some notable examples:

Jumia (Nigeria)
Sector: E-commerce
Expansion: Often referred to as “Africa’s Amazon,” Jumia is one of the largest e-commerce platforms on the continent. It started in Nigeria but expanded to over 11 African countries, including Egypt, Kenya, and Morocco. Jumia not only competes with local players but also attracts international investors, including venture capitalists from Europe and the U.S. Jumia’s ability to scale and grow in multiple countries, despite challenges in infrastructure and logistics, has made it a success story in African e-commerce.
MTN Group (South Africa)
Sector: Telecommunications
Expansion: MTN is one of the largest telecommunications companies in Africa, with operations in over 20 countries across Africa, the Middle East, and Asia. While it began in South Africa, it has successfully navigated various international markets, including Nigeria, Ghana, and Uganda. MTN’s ability to scale operations and offer services in both urban and rural areas has been key to its success. Despite challenges like regulatory hurdles and market competition, MTN has positioned itself as a global player in the telecommunications industry.
Safaricom (Kenya)
Sector: Telecommunications/Fintech
Expansion: Safaricom, which is best known for its mobile money service, M-Pesa, has successfully expanded the use of mobile banking across various African countries and even internationally. M-Pesa is one of the most successful mobile payment systems in the world, with over 30 million users. Safaricom’s strategy has been to expand not only within Kenya but also to neighbouring countries such as Tanzania, Mozambique, and India. It has also partnered with international firms like Vodafone, strengthening its global presence.
Dangote Group (Nigeria)
Sector: Conglomerate (Cement, Sugar, Salt)
Expansion: Dangote Group, owned by Nigerian businessman Aliko Dangote, has expanded far beyond Nigeria’s borders. The company has become one of Africa’s largest manufacturers of cement, with operations in several countries, including South Africa, Zambia, Tanzania, and Ethiopia. Dangote’s cement plants in these regions help meet the growing infrastructure demands of developing economies across Africa. The company’s ability to scale up its operations and deliver affordable products has helped it become a dominant player in the African cement industry.
Nike (Ethiopia)
Sector: Apparel/Footwear Manufacturing
Expansion: Nike, while not African, has invested heavily in Africa, specifically in Ethiopia. The company established a major manufacturing hub in Ethiopia, capitalizing on the country’s skilled labour force and competitive production costs. Ethiopia’s textile industry has grown significantly, producing apparel and footwear for global brands. While Ethiopia itself has not yet become an apparel exporter on the same scale as China, the partnership with Nike has made it a player in the global fashion and manufacturing supply chain.
Inyatsi Construction (Eswatini)
Sector: Construction and Engineering
Expansion: Inyatsi Construction is one of Eswatini’s largest and most successful construction companies. While it began operations in Eswatini, it has successfully expanded to neighbouring countries such as South Africa, Mozambique, and Zambia. The company has been involved in major infrastructure projects such as roads, bridges, and buildings, and its regional expansion has positioned it as a key player in Southern Africa’s construction sector. Inyatsi’s ability to secure large contracts outside of Eswatini speaks to its competitive edge and expertise.
Interswitch (Nigeria)
Sector: Fintech/Payments
Expansion: Interswitch, one of Africa’s leading payment processing companies, is another example of an African business making waves internationally. It has expanded its services across multiple African countries and has entered international markets such as the UK, where it has established a presence through strategic partnerships. Interswitch’s ability to provide digital payment solutions has enabled it to compete in the global fintech space, offering both local and international services that streamline payments for businesses and consumers alike.
Nando’s (South Africa)
Sector: Fast Food
Expansion: Nando’s, a South African fast-food chain, is known for its peri-peri chicken and has managed to create a global footprint. From its origins in Johannesburg, Nando’s has expanded to over 30 countries, including the UK, the US, Australia, and several other African countries. Its unique flavour offerings, combined with strong branding and a focus on quality, have allowed Nando’s to carve out a niche in the competitive global fast-food market.
Shoprite (South Africa)
Sector: Retail
Expansion: Shoprite operates in 15 African countries, including Nigeria, Zambia, and Angola. The company is Africa’s largest food retailer, bringing South African products to local markets. Its model of low-cost, high-volume retailing has been successful, allowing it to compete with global retail chains in emerging markets.
Montigny Investments (Eswatini)
Sector: Timber and Forestry
Expansion: Has evolved into the largest private timber owner-operator in Southern Africa. Montigny has successfully expanded its timber trading interests beyond Eswatini, engaging in markets such as South Africa, Mozambique, Namibia, Angola, Zambia, and Japan. In 2014, the company acquired Usutu Forest Products from SAPPI Limited, significantly enhancing its regional presence.

These examples demonstrate that African businesses are capable of competing internationally and expanding across borders. Through innovative business models, local adaptation, and strategic partnerships, they are overcoming the barriers of infrastructure, regulation, and competition.

However, for even more African businesses to follow suit, there must be further investment in infrastructure, better access to capital, and a continued push for regional integration across the continent. African businesses must break free from the confines of local markets and aim for broader regional and global recognition.

With the right infrastructure, regional cooperation, and strategic branding, African companies can expand their reach and compete with international giants. This will require investment, collaboration, and innovation, but the potential is enormous. By overcoming the barriers to scaling, African businesses will not only assert their place in the global marketplace but also drive the economic transformation of the continent.