From market map to purchase order: choosing your next African market

Start with a purchase you can explain

Your first hypothesis should connect an offer with a specific problem. “Selling equipment to Mozambique” leaves too many decisions unresolved. “Serving food processors that need more capacity, with installation and maintenance included in the plan” provides a clearer basis for identifying buyers and testing requirements.

Interview prospective customers about their current process, the cost of the problem, available alternatives and budget. Find out who uses the solution, who recommends it, who signs the contract and who pays. These roles may sit with different people or organisations.

Then compare a small number of country, segment and channel combinations. Assess verifiable demand, access to buyers, cost to serve, payment conditions and regulatory requirements. Record which elements remain hypotheses. A high score built on weak information should appear as uncertainty in the decision.

Three countries, three starting points

In Angola, oil dependence and economic diversification are relevant considerations in market analysis. The World Bank highlights the economy’s exposure to oil-sector shocks and challenges involving productivity and infrastructure. For a supplier, this suggests investigating the source of the customer’s budget and its ability to sustain a project through economic changes.

Processing, maintenance or management solutions might belong on a list of commercial hypotheses. Validation requires identifying businesses with a need, a budget and the ability to enter into a contract. A shared language may help conversations, but technical terminology, documentation and support arrangements still need to be agreed.

In Mozambique, the customer’s location deserves attention early in the analysis. Maputo, Beira and Nacala form part of the port infrastructure presented by Mozambique Ports and Railways. These alternatives raise an operational question: which route best serves the cargo and its final destination? Compare shipping connections, customs clearance, inland transport, storage and the availability of technical support.

In South Africa, establish at the proposal stage who will act as importer and which requirements apply to the product. SARS provides for customs registration of commercial importers. For goods subject to import controls, the South African government also provides for an ITAC import permit. The applicable requirements depend on the goods; correct classification should precede any delivery commitment.

These observations guide further investigation. None, on its own, establishes demand for a specific offer.

Choose a partner for the work they can deliver

“Having contacts” says little about a distributor’s ability to execute. Ask for evidence of commercial coverage, technical staff, storage, a relevant customer base and financial capacity. Check references and potential conflicts with competing brands.

Define responsibilities: who generates leads, demonstrates the solution, negotiates, holds inventory, installs and handles complaints? A company may be strong in sales while relying on third parties for technical support. That arrangement needs to be explicit in the budget and contract.

Treat exclusivity as a decision requiring verifiable commitments in return. Territory, segment, targets, review periods and exit conditions should be discussed with appropriate legal support. A limited trial helps assess a partner’s execution before making broader commitments.

Make the margin follow the same route as the goods

Build the cost through to the agreed delivery point. Include freight, insurance, port charges, customs clearance, applicable taxes, inland transport, storage, installation and support. Allocate responsibilities and check what each quotation actually covers.

Also model delays, exchange-rate changes and replacement needs. Equipment sold at an attractive margin may generate support expenses omitted from the proposal. Digital services require a similar calculation: implementation, training, necessary connectivity and support hours belong in the cost to serve.

Before signing, confirm the currency, payment method, required documents, fees and expected net receipt with the customer and financial institution. Where appropriate, assess partial advance payments, milestone payments or credit-protection instruments. The choice should reflect the buyer and the transaction, including its costs and limitations.

Make compliance and learning part of the sales process

Create a country- and product-specific list covering tariff classification, permits, certifications, labelling, documentation, intellectual property and data requirements where digital services are involved. Confirm current requirements with the relevant authorities and qualified advisers. Include counterparty checks, signatory authority and business-integrity requirements in the contracting process.

For the first transaction, define a pilot with a scope, price, timeline, named responsibilities and acceptance criteria. Track actual delivery cost, time to payment, support effort and the potential for repeat purchases. Record what needs to change before expanding.

Expansion becomes easier to justify when a business can repeat a delivery with consistent quality and margin. Which combination of customer, channel and operation can you demonstrate today, with enough evidence to put capital at risk?

The discussion can continue through the contact channels on the HUNT website.