The Essential Guide: What Not to Do When Expanding Your Business into Africa

Africa’s rising economies and vibrantly young workforce are drawing many international businesses. McKinsey projects that Africa will soon have the world’s largest working-age population -- a trend already visible in countries like Nigeria, where nearly 70% of the population is under 30. However, companies that skip research or ignore local realities during their team expansion efforts, often stumble. In this guide we outline some noteworthy mistakes that HR and business leaders should avoid when expanding teams across the Africa continent.

Mistake 1: Treating Africa as a Single Market

Africa comprises 54 very different countries. Assuming a one-size-fits-all approach is costly. As McKinsey notes, “there is no ‘one Africa’”; the continent is a “mosaic and not a monolith”.  Consumer preferences, languages, currencies and regulations can differ hugely from Nigeria to Kenya to Morocco. For example, consumer tech adoption in Nigeria can be very different from Kenya or Egypt.

Assuming Africa operates as a single market is perhaps the costliest mistake companies make. Each country presents unique challenges and opportunities that require thorough investigation. [Africa Business Forum and Expo (AFEX)]

To avoid this mistake, research each target country’s culture, language, and regulatory environment, and tailor your HR policies locally.

The different Languages and Culture of some African countries

Africa is a mosaic of over 50 countries, thousands of ethnic groups, and more than 2,000 languages. Understanding the dominant business languages, local customs, and workplace etiquette in each target country is critical for successful team integration, communication, and engagement.

Here’s a quick look at some regional language and cultural nuances:

West Africa

• Nigeria: Official language is English; however, major local languages include Yoruba, Hausa, and Igbo. Culturally, respect for hierarchy, titles, and age is deeply valued.

• Ghana: English is official; major local languages include Twi, Ewe, and Ga. Workplaces blend Western business practices with strong communal values.

• Senegal: Official language is French; Wolof is widely spoken. The culture values diplomacy, indirect communication, and social harmony.

• Côte d’Ivoire: Official language is French, but local languages like Baoulé and Dioula are common. Hierarchical respect and formal greetings are key cultural traits.

• Cameroon: Official languages are French and English, and over 200 local dialects are spoken. There’s a noticeable divide between Anglophone and Francophone regions, which influences communication style and employee relations.

  
  

East Africa

• Kenya: English and Swahili are official languages. Business culture values punctuality and professionalism, but there's also a strong emphasis on relationship-building.

• Tanzania: Swahili is the national language, and English is used in business and government. The culture is generally collectivist, with a respectful and humble communication style.

• Ethiopia: Amharic is the official language; English is used in business, especially among educated professionals. Cultural norms stress respect for elders and authority.

North Africa

• Egypt: Arabic is the official language; English and French are used in business circles. Business culture is formal, and decisions are often made at the top.

• Morocco: Arabic and French are dominant, with Berber spoken in some regions. The culture blends Arab, Berber, and French influences; relationship-building is essential.

• Tunisia: Arabic is official; French is widely used in business. Formal titles and business etiquette are important in negotiations and meetings.

Southern Africa

• South Africa: Has 11 official languages, including English, Zulu, and Afrikaans. Business is typically conducted in English, but cultural awareness is vital due to the country’s racial and ethnic diversity.

• Angola: Portuguese is the official language; local languages like Umbundu and Kimbundu are widely spoken. Formality and hierarchy are valued in business interactions.

• Mozambique: Also Portuguese-speaking, with local languages like Makhuwa and Sena. Respect for elders and consensus in decision-making are cultural hallmarks.

Mistake 2: Ignoring Country-specific Local Labor Laws and Employment Regulations

Compliance is mandatory.

Some companies make the mistake of assuming that as a developing region, Africa won’t have the same stringent labor laws as Europe or North America. But this is a dangerous assumption. [fastcompany]

In reality, each country has its own labor code, tax rules and payroll requirements, which change frequently. Non-compliance can be very costly: major firms have faced huge fines (for example MTN Nigeria was hit with a record $5.2 billion fine) or legal action (Uber was sued in Kenya over tax and data laws, and a South African airline was fined for violating employment equity rules).

Some companies wrongly assume that African labour laws are lax or loosely enforced due to the region’s developing status. But this assumption has proven costly. In reality, most African countries operate under structured and evolving legal frameworks that govern employment, payroll, tax, and termination, and these laws may differ dramatically between jurisdictions.

What’s legal or expected in one country may be restricted, interpreted differently, or even illegal in another. Below are some research-backed contrasts between African countries across key HR and compliance topics:

📝 Employment Contracts

• Ghana: Employment contracts must be in writing and include key terms such as job description, remuneration, hours of work, and termination clauses.

• Kenya: Written contracts are legally required for employment lasting more than three months.

• Nigeria: A written statement of terms must be provided within three months of hire, but contracts can begin orally.

• Angola: Written contracts are mandatory for foreign workers and fixed-term roles.

• South Africa: Written contracts are not legally required but strongly recommended to avoid disputes.

• Egypt: Contracts must be written in Arabic and submitted to the Labour Office in triplicate.

This means single company policy on contracts would be non-compliant in at least one country if not tailored.

⏳ Probation Periods

• Ghana: Allows probation, typically up to 6 months, but it must be clearly defined in the contract.

• Nigeria: No legal definition for probation periods. Businesses must use contractual discretion.

• Kenya: Probation is limited to 6 months, and termination during this period still requires valid reasons and fair procedure.

• South Africa: Even during probation, employees are protected under the Labour Relations Act, requiring substantive and procedural fairness in dismissal.

This means some countries treat probation as a grace period, others as a legally protected phase with full employee rights.

🚫 Termination & Dismissal

• Ghana: Dismissal must be for just cause and follow due process, including written notice and an opportunity for the employee to respond.

• Egypt: Dismissals are heavily regulated. Employers must prove just cause, issue official warnings, and often pay severance.

• South Africa: Employers must follow a fair disciplinary process before any dismissal; failure to comply leads to CCMA mediation or court cases.

• Nigeria: Termination is easier for employers, but statutory notice and severance still apply.

• Angola: Dismissals require just cause and legal procedure. Failing to follow them can trigger fines or employee reinstatement.

💵 Minimum Wage and Payroll

• Ghana: Has a national minimum wage reviewed annually. Employers must also make statutory contributions to SSNIT and PAYE.

• Kenya: Minimum wage varies by location and job category; employers must also contribute to NSSF and NHIF.

• South Africa: Enforces a national minimum wage across sectors and has strict rules on deductions and leave.

• Nigeria: Has a national minimum wage, but enforcement is inconsistent across private employers.

• Morocco: Sets different minimum wages for public vs. private sectors, and updates them regularly via government decree.

🏛️ Unionization and Collective Bargaining

• Ghana: Workers have the constitutional right to form and join trade unions. Collective bargaining is common in sectors like mining, education, and manufacturing.

• South Africa: Highly unionized with powerful collective bargaining structures; strikes are legal and common.

• Egypt: Trade unions exist, but are often seen as state-aligned, with limited independent bargaining power.

• Kenya: Active trade unions influence sectors like health, education, and transport.

• Nigeria: Several independent unions operate under the Nigeria Labour Congress, though union power is sector-dependent.

African labour laws are country-specific, frequently changing, and uneven in enforcement. Employers must tailor their HR policies by jurisdiction, not by region. Compliance requires ongoing legal monitoring, and not assumptions based on neighboring markets.

Mistake 3: Neglecting Local Partnerships and Networks When Expanding Your Business into Africa

Many international businesses arrive with capital and strategy but fail to recognize that trust, influence, and long-term success on the continent are deeply rooted in relationships. Expanding into Africa presents a unique opportunity for businesses to strengthen their impact through collaboration. Local networks, made up of community leaders, entrepreneurs, and regional experts, offer deep-rooted insights and connections that can shape market success. Engaging these partnerships from the outset promotes trust, aligns strategies with local realities, and opens doors to sustainable growth. A relationship-driven approach lays the foundation for meaningful engagement and long-term value across the continent.

Mistake 4: Underestimating Infrastructure and Connectivity Realities

Assuming steady power, internet, and transport access across Africa can put business operations at risk. According to the International Telecommunication Union, only 38% of Africa’s population used the internet in 2024, compared to a global average of 68%. While mobile broadband reaches much of the population, around 14% remain completely unconnected, with rural areas are the most affected. In terms of power, countries like Burundi and Tanzania still face over 100 and 60 days of electricity cuts each year, making energy reliability a major concern for incoming businesses.

Logistics also remain a challenge. Poor road conditions in some regions, frequent delays at ports, and limited cold-chain infrastructure can disrupt supply chains or damage perishable goods. In fast-growing economies, rapid urbanization has outpaced infrastructure upgrades, further complicating distribution.

Best practices for resilient operations:

1. Invest in reliable backup systems: Solar-plus-battery setups and standby generators are essential in regions with unreliable electricity. Businesses are also turning to satellite internet options like Starlink, which, according to user reports on Reddit and other community forums, now offer broader and faster coverage than some local providers.

   
   

2. Leverage local technology and telecom partnerships: In South Africa, companies like Fibertime are introducing affordable fiber internet on a pay-as-you-go model in underserved areas. In East and West Africa, mobile money platforms such as M-Pesa and MTN Mobile Money remain essential for transactions where traditional banking is limited.

   
   

3. Build logistical buffers and use regional hubs: Allow for extra lead time in delivery schedules and use well-established distribution centers in South Africa, Kenya, or Ghana to streamline movement across multiple countries.

   
   

4. Enable offline-first tools and training: Equip teams with tools that allow them to work offline and sync when internet access is restored. This approach has become a best practice, especially in rural areas where connectivity is inconsistent.

   
   

5. Support local infrastructure development: Many successful companies do more than run their businesses; they help the communities around them. Some fix roads nearby, others help build small solar systems for electricity or support digital education. These efforts make both the community and the business stronger.

Mistake 5: Poor Talent Planning for International Teams

Expanding into new markets often requires a blend of global expertise and local know-how, but many companies lean too heavily on foreign staff without a clear strategy. While bringing in expatriates can be necessary in some cases, many African countries now enforce policies that promote local employment, including quotas for expats, reserved job categories for citizens, and strict work permit requirements.

For instance, Nigeria sets expatriate quotas in key sectors, Ghana enforces localization through its investment codes, and South Africa requires proof that no local candidate can fill a role before approving a general work visa. These measures are designed to protect domestic labor markets and ensure skills transfer.

Smart workforce planning is critical. 

Companies must strike the right balance between foreign expertise and local talent development, both to stay compliant and to succeed in complex, locally nuanced environments.

Steps for success:

1. Design a Local-First Talent Strategy: Identify roles that can be filled by in-country professionals, and create training paths to build internal capacity over time.

   
   

2. Plan Proactively for Expat Work Permits: Start the visa process well in advance, and understand country-specific limits on foreign hires. Some industries have strict caps or lengthy processing times.

   
   

3. Explore Practical Staffing Alternatives: Instead of relying heavily on expatriates, consider working with local talent pool experts who understand the regional labor market. These experts can help you identify qualified professionals within the country or from established regional talent hubs, while also ensuring compliance with local hiring laws and cultural expectations. This approach not only reduces costs and visa complexities but also supports long-term workforce sustainability.

   
   

4. Track Permits and Policy Changes: Immigration rules can change quickly. Keep up with local updates to avoid lapses in legal work status for your international employees.

   
   

5. Invest in Localization and Skills Transfer: Build systems for mentoring and knowledge-sharing between expatriates and local staff. Governments increasingly expect a clear plan for transitioning roles to citizens.

   
   

In Conclusion, Expand with Guided Strategy

Africa holds immense potential for businesses willing to do their homework, but these opportunities do not excuse oversight. Every overlooked detail in your expansion journey, be it legal compliance, talent alignment, or stakeholder engagement, can slow momentum, strain credibility, and invite costly setbacks.

As you plan your expansion into Africa, preparation is everything. Businesses that take the time to understand local realities are far more likely to thrive. At OML Africa, we help businesses expand confidently and compliantly across the continent. OML Africa offers the hands-on support you need to expand confidently. Our experts can help you hire locally through our Employer of Record (EOR) service, ensure compliance with labor laws, and design a growth strategy that fits the local context.

Partner with OML Africa and move forward with clarity, compliance, and confidence.

📩 Get in touch today to build smarter teams and scale across Africa, without the costly mistakes.

Email us at peopleservices@omlafrica.com or call us on +233 (0) 302 973379 to speak with an expert.