4 Tips Doing Business in Africa

Africa isn’t waiting for anyone’s permission to boom. Sub-Saharan Africa is on track for 4.2% economic growth in 2025—making it the second-fastest growing region on the planet. While everyone else is arguing about recession risks, an entire continent is building the future.

The numbers tell a story most people are missing. We’re talking about 44 million small and medium businesses, with small enterprises creating 84% of all jobs across the continent. This isn’t charity or development aid—this is raw economic momentum. Tech hubs in Lagos. Financial centers in Nairobi. Legal frameworks that work. Infrastructure that’s finally catching up to ambition. The stereotype of Africa is about 20 years out of date.

Smart money is already moving. Investors who used to write off the entire continent are scrambling to get in. They’re seeing what’s there: young populations, rising middle classes, and markets hungry for everything from fintech to consumer goods. The infrastructure gaps that used to kill deals? They’re turning into opportunities for the companies willing to fill them.

Africa is open for business, but it’s not going to wait for you to get comfortable with the idea. The companies winning there now aren’t the ones studying it to death—they’re the ones who figured out how to navigate the complexities and started selling. Ready to be one of them? Here are four tips that work for doing business in Africa, from people who’ve done it successfully.

1. Understand employment regulations

Every country in Africa has its own rulebook, and thinking you can wing it is how companies end up in legal trouble before they’ve made their first sale. Employment laws aren’t suggestions—they’re requirements with real penalties attached. Want to hire in Kenya? Different rules than Nigeria. Setting up in South Africa? Completely different game than Morocco.

Let’s use South Africa as an example, because it perfectly shows why homework matters. The regulations there aren’t just different—they’re complex, specific, and seriously enforced. Understanding them isn’t bureaucratic box-ticking. It’s the difference between smoothly scaling your business and explaining to your board why you’re paying fines instead of generating revenue.

Employment regulations differ significantly by country and have become increasingly sophisticated. Many nations have implemented stronger worker protections and compliance requirements in recent years. Countries like South Africa have introduced comprehensive employment equity frameworks that require specific transformation targets.
Employer costs and compliance requirements vary across the continent. While some regions maintain lower social contribution rates, countries like South Africa have implemented sector-specific numerical targets that are mandatory for employers with 50+ employees. These new employment equity regulations require five-year employment plans and include a 3% disability employment goal across 18 economic sectors.
Acquiring work permits and visas is difficult. To spur local employment, South Africa heavily favors organizations hiring locally for the majority of its positions. The Department of Home Affairs requires employers to demonstrate that no South African citizen or permanent resident can fill the role through the Department of Labour certification.

If employers can prove that no South African citizens or permanent residents are qualified for the job, they can then sponsor a foreigner for a general work visa. Because it can be a time-consuming and arduous process, it is likely best to recruit and hire local South African nationals.

2. Identify the top markets

Despite certain economic conditions, there are benefits to entering African markets. The continent’s emerging markets offer significant opportunities for international businesses, with several countries leading in key growth sectors. Consider looking into the following areas that have strong potential for growth in 2025 and beyond.

Morocco remains the leader in renewable energy across Africa. The country has achieved 44% renewable energy in its power mix as of 2025, with $2.7 billion in new investments underway. Morocco’s strategic location continues to serve as a gateway between Africa and Europe, with strong trade relationships and infrastructure development.
Kenya maintains the largest and most diversified economy in East Africa. Real GDP growth is projected at 4.5% in 2025, with the economy expected to strengthen to 5% by 2026-2027. The capital, Nairobi, is often called “Silicon Savannah” due to its thriving startup ecosystem and technology innovation.
Ghana achieved an impressive 5.3% GDP growth in Q1 2025, exceeding most forecasts with gains driven by strong non-oil sector performance. The information and communications technology (ICT) sector recorded 13.1% growth, while internet penetration reached 68.6% of the population in 2025. Ghana has extensive software and technology development talent, which it continues to showcase through major digital transformation initiatives and AI innovation programs.

Also worth mentioning is Nigeria, which deserves consideration as Africa’s largest economy with over 200 million people and a rapidly growing tech ecosystem, particularly in fintech and e-commerce. Similarly, South Africa hosts one of the continent’s strongest economies, underpinned by advanced financial infrastructure and renewable energy. Egypt’s strategic location, diversified economy, and government reforms to attract foreign investment, make it another key market for international expansion.

3. Identify high-growth industries

There are several prospective industries to watch for growth in Africa, including:

Financial technology. Africa’s global fintech innovation is soaring, with mobile money solutions serving millions of unbanked consumers. Countries like Kenya and Nigeria have become testing grounds for breakthrough financial services that later expand worldwide.
Digital retail and e-commerce. Mobile-first shopping is transforming how Africans buy everything from groceries to electronics. With smartphone adoption driving online retail growth, more consumers are skipping traditional desktop shopping, while local payment solutions and delivery networks are making online shopping accessible in previously underserved areas.
Healthcare. Telemedicine and digital health platforms are addressing the continent’s healthcare accessibility challenges. AI-powered diagnostics and remote monitoring solutions show particular promise in rural areas, and global organizations and governments are increasingly funding healthtech initiatives across the region.
Transportation and logistics. Rapid urbanization has created demand for modern public transportation systems. Electric vehicle adoption and sustainable transport solutions are gaining momentum in major cities, while improved logistics networks are supporting growing e-commerce and cross-border trade.
Manufacturing and production. The African Continental Free Trade Area has boosted demand for locally produced goods, while government incentives are encouraging foreign investment in production facilities. Automotive and textile manufacturing sectors have also shown strong export potential.

4. Partner with a global EOR to streamline entry

Expanding into Africa solo is like trying to navigate 54 different countries’ legal systems with a compass and good intentions. Sure, you could figure it out eventually—after burning through cash on lawyers, accountants, and costly mistakes. Or you could partner with an Employer of Record (EOR) and skip the expensive education.

Here’s how it works: An EOR becomes the legal employer for your African team while you run the show. They handle the maze of contracts, payroll, taxes, and benefits that change from Kenya to South Africa to Egypt. You focus on your business—managing your team, hitting targets, growing revenue. They focus on keeping you compliant with labor laws you’ve never heard of and tax requirements that would make your head spin.

The math is compelling. Setting up your own entity takes 6-12 months and serious capital. With an EOR, you’re operational in weeks. No entity formation. No figuring out which benefits are mandatory in Nigeria versus optional in Ghana. No discovering three months later that you’ve been calculating overtime wrong. Just clean, compliant hiring that lets you test markets without betting the farm. When you’re ready to scale, you already know what works—and you haven’t spent a fortune learning.

Timing is everything in Africa’s talent market. The best developers in Lagos, the sharpest financial analysts in Johannesburg—they’re not waiting around while you spend a year setting up a legal entity. By the time you’ve finished registering your company in South Africa or Nigeria (6 to 12 months if you’re lucky), the talent you wanted has been hired by someone faster.

That’s where EOR services flip the script. Instead of months of paperwork, you’re making job offers in weeks. While your competition is still talking to lawyers about entity formation, you’re already onboarding that brilliant engineer in Nairobi. You’re building relationships with local talent who know the market. You’re selling, learning, and adjusting—not sitting in government offices waiting for stamps. In markets moving this fast, the company that can hire first usually wins.

Expand into Africa with confidence

Africa’s growth isn’t slowing down for anyone. While you’re reading this, companies are already hiring the continent’s best talent, building customer relationships, and capturing market share. The question isn’t whether to expand into Africa—it’s whether you’ll do it smart or do it hard.

Pebl (previously Velocity Global)’s Employer of Record (EOR) service makes African expansion simple. We’ve already done the homework in every major African market. We know which benefits are mandatory in South Africa, how to structure contracts in Kenya, and what makes payroll compliant in Nigeria. You bring the business vision—we handle everything else.

Stop studying Africa and start selling there. Contact us today to see how our international expansion service gets you operational in weeks, not months. Because in markets growing this fast, the early movers aren’t just winning—they’re defining what winning looks like.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.