‘Don’t get caught in the corruption web

Forget the ‘one-size fits all’ approach when dealing with Africa, says Patrick Lumumba, the former director Kenya Anti- Corruption Commission and currently an advocate of the High Courts in Kenya and Tanzania. “It is extremely important to understand the proper dynamics of the continent, to recognise the various colonial ties and adapt your business strategies accordingly,” he told guests at a seminar in Johannesburg recently. “Africa is a great prospect. South African businesses must recognise what they have to do to compete. It is rapidly becoming a far more competitive, fast-paced and sophisticated market, especially in the larger cities,” he added. He said Europe was currently looking to Africa to revitalise its economy and may have the upper hand on South Africa because of the old colonial ties, especially in French and Portuguese-speaking countries. To compete, South Africa must acknowledge that it is an integral part of Africa and that the country’s growth opportunities lie within the continent. It is also important to find a reputable local partner in the African countries identified for growth and expansion, especially one with the right attitude and a willingness to engage on equal terms, as it is difficult to proceed without local expertise – to varying degrees, depending on the country, said Lumumba. He also cautioned that while Africa’s numbers were impressive, the market opportunities still had “a way to go” and issues such as a current lack of skills would have an impact on short- to mediumterm growth opportunities. He acknowledged that while corruption was a factor, almost all countries were taking steps to address it. “When one country makes inroads into corruption, its neighbours are compelled to follow suit or fall off the pace. It’s infectious.” “The moment a company pays a single kickback, the word is immediately out in the market and the company’s corporate culture is destroyed overnight,” he said.