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Q: Africa Business Practices ( Answered,   0 Comments )
Question  
Subject: Africa Business Practices
Category: Business and Money
Asked by: joel1357-ga
List Price: $100.00
Posted: 04 Jun 2002 05:36 PDT
Expires: 11 Jun 2002 05:36 PDT
Question ID: 20607
I need to know which countries in Africa require you to use agents or trading
companies in their country in order to do business.
 
Thank You, 
Joel
Answer  
Subject: Re: Africa Business Practices
Answered By: politicalguru-ga on 04 Jun 2002 09:53 PDT
 
Dear Joel 1357, 

As you can see from the list bellow, very few countries )actually,
acording to my check, only Ethiopia requests that as a rule) request
an agent by law, but it is highly recommended to have one in many
others.

Note: No means that no official legal request for an agent. However,
not that it is recommended in most sub-saharan Africa countries to
have an agent familiar with the culture and local languages; and that
even if no agent is required, that usually doesn't apply to oil
production and similar businesses.

Algeria - No (1993 Law) -
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-ALGERIA1998-CH-IV-006FCA5F

Angola - No ("A U.S. company may market directly through an
established importer in Angola, by winning a tender, through
investment, or by opening an office in Angola."), but "Subsidiary or
affiliate companies of U.S. organizations operate in several areas
including computers/office equipment, petroleum products, and
agro-industry. Finding partners or agents and distributors for U.S.
products is possible, though financial arrangements can be
problematic". Source:
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-ANGOLA1999-CH-IV-0072C835

Benin - No, but one should consult with a Beninese lawyer before
opening a buisness -
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-BENIN2001-CH-4:-00629B28

Botswana - No. The government has "Agent/Distributor Service (ADS)"
that assist investors find an agent.
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-BOTSWANA2002-CH-4:-005CDC9C

Burkina Faso - "THERE IS NO LAW IN BURKINA FASO REQUIRING RETENTION OF
AN AGENT/DISTRIBUTOR, BUT THIS IS ADVISABLE."
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-BURKINA_FASO1998-CH-IV-005AC2DF

Cameroon - different laws in different parts of the country, but
basically ".S. businesses planning to enter the Cameroonian market
should find a local agent who sells directly to wholesalers and can
help new firms obtain market knowledge at low cost. For products
requiring after-sales service and spare parts, the appointment of a
distributor is recommended. Agents and distributors must register with
the Government, and their contracts must be notarized and published in
the local press." - http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-CAMEROON2001-CH-4:-00662341

Cape Verde (Cabo Verde) - Not necessarily, but highly recommended
because of the underdeveloped form of the market -
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-CAPE_VERDE2001-CH-4:-0047B002

Central African Republic (Bangui) - No.
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-C.A.R.2001-CH-5:-005F617A

Chad - No, but highly recommended -
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-CHAD2002-CH-4:-00432927

Congo, Democratic Republic of the - No, but highly recommended
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-CONGO-DEM_REP2001-CH-4:-005AE865

Cote d'Ivoire - No (http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-COTE_D'IVOIRE2002-CH-4:-00475F90)

Egypt - Only on government tenders: "Egyptian commercial agents are
required for foreign firm bids on most civilian government tenders."
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-EGYPT2002-CH-4:-002735C0

Equatorial Guinea - No.
http://www.usatrade.gov/Website/CCG.nsf/ShowCCG?OpenForm&Country=EQ.+GUINEA

Eritrea - No. http://www.usatrade.gov/Website/CCG.nsf/ShowCCG?OpenForm&Country=ERITREA

*Ethiopia - Yes - "Ethiopia requires that all imports be channeled
through Ethiopian nationals registered with the government as official
import or distribution agents." -
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-ETHIOPIA2001-CH-4:-006328F5

Gabon - No, but recommended
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-GABON1999-CH-IV-006B3309

Ghana - No, but "strongly advised"
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-GHANA2002-CH-4:-0048DAE0

Guinea - direct marketing is permitted.
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-GUINEA2002-CH-4:-006371EA

Kenya - No, but advisable
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-KENYA2002-CH-4:-004CCF96

Lesotho - No, see http://www.lesotho.gov.ls/lseconomy.htm

Liberia - A lawyer is highly recommended.
http://www.usatrade.gov/Website/CCG.nsf/ShowCCG?OpenForm&Country=LIBERIA

Libya - No trade with the US. (see your other question)

Madagascar - No, but highly recommended -
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-MADAGASCAR2001-CH-4:-0069CF2A

Malawi - No, http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-MALAWI2001-CH-4:-00456B3A

Mali - *Yes* direct marketing is NOT feasible (but however its seems
legal). http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-MALI1999-CH-IV-006CDA20

Mauritania - No. http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-MAURITANIA2001-CH-4:-0044E65C

Morocco - No. http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-MOROCCO2002-CH-4:-0068F324

Mozambique - No. http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-MOZAMBIQUE2001-CH-4:-00589A0D

Namibia - No. However, the Namibia National Chamber Commerce and
Industry (NCCI) and its affiliated chambers, offer services to foreign
investors in need of agents, distributors and joint-venture partners.
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-NAMIBIA2001-CH-4:-0056329E

Niger - You must obtain a business certificate from the Ministry of
Commerce, but an agent is not necessary it is recommended though) -
http://www.usatrade.gov/Website/CCG.nsf/CCGurl/CCG-NIGER2001-CH-4:-0051DDA9

Nigeria - No. http://www.usatrade.gov/Website/CCG.nsf/ShowCCG?OpenForm&Country=NIGERIA

Senegal - No., http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-SENEGAL2002-CH-4:-0040061B

South Africa - no. see
http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-SOUTH_AFRICA2002-CH-4:-004460EC

Sudan - no trade with US

Swaziland - No, http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-SWAZILAND1998-CH-IV-006D595B

Tanzania - No., http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-TANZANIA2002-CH-4:-004FAF5E

Togo - No, http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-TOGO2001-CH-4:-00642EDF

Tunisia - No, http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-TUNISIA2002-CH-4:-004840EF

Uganda - No, http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-UGANDA2000-CH-IV-006DEEEC

Zambia - No, http://www.usatrade.gov/Website/CCG.nsf/ShowCCG?OpenForm&Country=ZAMBIA

Zimbabwe - No, http://www.usatrade.gov/website/ccg.nsf/CCGurl/CCG-ZIMBABWE2002-CH-4:-0042E7E3

I also recommend you'll check out this article on African Business
Scams:
http://www.political-tips.com/TipNL.asp?Tipid=52542

I hope that helps. Please contact me for any further informtaion.

Request for Answer Clarification by joel1357-ga on 07 Jun 2002 22:43 PDT
The answers for the countries you have listed are very good, but I
have done some research and have found some countries within the
continent of Africa that you have not listed.  Could you please
elaborate on the following countries:

Barundi
Bissau
Djibouti
Gambia
Rwanda
Sierra Leone
Somalia
Zaire

Thanks, and I look forward to your answers.

Joel

Clarification of Answer by politicalguru-ga on 10 Jun 2002 07:18 PDT
Dear Joel, 

I just wanted to clarify that I am working on your answer. The
countries mentioned are all involved in some kind of severe political
instability, which makes it hard to find sources on them (there is
also a travel warning on all of them). Some of them are also under
partial embargo due to the political situation. However, I am doing my
best to find as much information as possibile regarding your question.
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