Doing business in Africa: the future for Monegasque companies

The third edition of Africa Day was aimed at reviewing the current business environment on the African continent, strengthening links between entrepreneurs and providing a few tips for operating successfully in Africa.

As Monaco’s second-largest trading partner after Europe, Africa represents a sizeable continent of opportunities for Monegasque companies. It has many assets: abundant natural resources and a young, creative and motivated population that believes in the future.

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In 20 years’ time, Africa will have 2.5 billion inhabitants: “a very young population that represents the world’s future workforce,” stressed Frédéric Geerts, President of the Club des Entrepreneurs Monegasques en Afrique (CEMA – Monegasque Business Leaders in Africa) since 2020, in his introductory speech.

This was the backdrop to the third Africa Day, organised by CEMA at the Monaco Yacht Club in collaboration with a number of Monegasque institutions including the Monaco Economic Board (MEB), the French Council of Investors in Africa (CIAN), the Belgo-Luxembourg Chamber of Commerce (CBL-ACP), the European Business Council for Africa (EBCAM), Afrique Magazine and the Femmes Chefs d’Entreprises Mondiales (FCEM).

The aim of the day was to understand how to grow in Africa, and the club’s purpose is to “pool strengths, share contacts and best practice among business leaders in Africa.”

Africa, the new Eldorado

Contrary to certain preconceived notions, Africa has abundant resources, particularly water. “There’s more water here than anywhere else,” says Zyad Limam, CEO and founder of Afrique Magazine. Mo Ibrahim, pointed out that “Africa is brimming with capital, with many prosperous and expanding businesses.”

While Africa represents a new Eldorado, there is no question of going back to old ways. “Africa was built economically to serve other countries’ needs,” so there is a need to “establish a fair balance of trade between Africa and rich countries,” involving “African players in the process,” says Zyad Limam.

Africa has been undergoing a real transformation since the 1980s, “an impressive journey that few people are aware of,” according to Zyad Liman. Far from the stereotypes that too many entrepreneurs from rich countries may have, Mo Ibrahim invited participants to “base opinions on concrete data and not on preconceptions.”

Boosted by the constructions that are shaping its cities, Africa’s GDP continues to rise, with growth averaging 3.5%.

A word from the Chairman of CEMA :

The CEMA has 28 active members in 45 African countries, with the aim of strengthening relations between Monaco and this vast continent. Since it was founded in 2014 by Adnan Houdrouge, the club has focused on “15 mainly French-speaking countries, such as Côte d’Ivoire, Senegal, the two Congos and Madagascar,” said Frédéric Geerts.

The club now wants to broaden its horizons: “We want to develop relations with all African countries, particularly English-speaking ones. The CEMA is planning a webinar with Nigeria in the near future.”

On the subject of safety, a major concern for any entrepreneur, Frédéric Geerts sought to reassure: “I don’t think the media always reports useful information.” There may be “political instability in certain countries, particularly those bordering Côte d’Ivoire or the Sahel,” but he put the risks into perspective, saying that insecurity is no more of a problem than elsewhere. “In the megacities with 20 million inhabitants like Kinshasa or Lagos, you need to be careful if you go out in the evening wearing a watch, but that’s also true in Paris, London or Cannes. Having lived in Kinshasa, I’ve never had an issue in Africa. I’ve been burgled four times in France.”

For entrepreneurs who are still unsure about investing in Africa, Frédéric Geerts stresses the interpersonal skills of the African people: “They are very welcoming, respectful, with strong family values and a great sense of solidarity. And above all, they’re optimists!”

Isabelle Berro-Amadeï, Minister of Foreign Affairs and Cooperation, shares that view. On her trips to Africa, she has met “an amazing group of young people who love their country and would like to stay there.”