Business In Africa On The Increase

"Since we set up our Global Africa Practice in late 2011 with the primary goal of encouraging bilateral trade and investment both into and within Africa, we've seen an explosion of interest in the continent and the very real opportunities it offers."

Thunström says that the KPMG Global Africa Practice is dealing on unprecedented level of interest from companies, both local and foreign, ranging in size from large multinationals down to the likes of a local fencing manufacturer, all seeking to capitalise on a largely untapped market of more than a billion people, many of whom are young, aspirant and living in rapidly urbanising areas.

"Fourteen months ago everyone was talking about the potential offered by doing business in Africa, but many were afraid to take the first steps. They'd all heard some urban legends about corruption or someone being fleeced by their local partner."

Today it's a vastly different picture. "We're working around the clock to keep up with the levels of requests for assistance," says Thunström. "CEOs are telling us, 'We realise we weren't the first, or even the fifth in our sector to expand into a particular African country. We're happy to be the seventh or eighth but we don't want to be the twentieth'."

One of the most common questions Thunström is asked is about the best place to enter the African market. With 54 diverse markets to potentially choose from, there's no simple answer. But with the resources and experience of KPMG's 33 practices in Africa to draw on, Thunström and his team are well placed to give advice tailored to a client's specific circumstances, appetite for growth and the specific sectors they operate in.

"You simply cannot do these transactions remotely without in-depth local knowledge. We operate throughout Africa, so we're in a position to offer this level of support. In addition we strongly recommend that foreign companies opening up in African countries take on a trustworthy local partner or buy into an existing business. This may seem more complex, however the advantages of local knowledge and connectivity can be critical.

"Contemplating a move into Africa can be a daunting prospect. But the potential rewards are now well understood and we are spoilt for successful proof points, but reparation and local knowledge are everything."