Best Practices for Investments in Africa

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As the demand for iron, copper, gold and diamonds in the US keeps growing, the pressure on Africa increases. This subsequently ensures larger investments from US companies into African continents to increase mining. Additionally, pressure for industrial development and safety equipment also increases. As more and more US companies invest in Africa, some best practices become mandatory.

Adoption of improved safety standards has become compulsory to ensure compliance with wide-ranging sustainability measures. These safety protocols include instructions on where foreign employees are allowed to go while they are in Africa. Sensitive areas are to be off-limits. Besides, depending on the political conditions of the African country, there may be need for provision of armed security to protect US employees.

For US healthcare NGOs and other companies investing in Africa, respecting the government policies is a recommended best practice. They must be up-to-date with policies and acts in order to ensure compliance with business terms. Hiring a lawyer in the African country to protect the company’s employees, assets and interest is also a recommended best practice. Moreover, hired locals must be enlightened about the company’s regulations and other best practices.

In cases of accidents, the company must ensure that the victim gets medical attention. They must, abide by laws governing compensation of the family of the victim if there is death. For US healthcare and pharmaceutical companies in Africa there are defined guidelines on best practice which must be strictly adhered to. Failure of compliance can lead to legal issue involving international judiciary bodies. This can be bad for the business at an international level.

Most countries have governments that prefer to deal with companies that are registered within their country. This is considered normal there because African governments see the need to consolidate the mining industry within the boarder. This boosts the economy and value of mining projects. This is as a result of the business benefits attached and establishment of supporting industries.

Investing in industrialization in Africa serves as an opportunity to create jobs. This impacts the economy of African continents through significant growth. Though, resource-rich countries like Nigeria have the most benefits to reap. Being a crude oil rich country, when US companies invest in Nigeria, there is significant focus on investing in health care, infrastructure and other social development programs.

With developments in industrialization and increased employment, training of employees also becomes mandatory. This increases technical know-how and rate of production with safety measures. Moreover, other industries that choose to support their business through stocking also have to adopt best practices. There are issues with preservation and security that must be taken into account.

For companies that have shareholder, sending regular reports about their best practices and progress is very important. This will allow the company’s owners to provide necessary measures to improve the safety standards of the company in African countries. This is not just for mining companies, but for healthcare providers in Africa as well.

Company owners must acquaint themselves with governance best practices and transparency for investment in Africa.

Further reading: Corporate Governance | Audit | Performance Improvement

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