The World Bank estimates the benefits that can be mined from the African Continental Free Trade Agreement (AfCFTA), has the potential to lift 30 million Africans out of extreme poverty. Leveraged to its full potential, this landmark agreement could boost the continent’s income by $450 billion by 2035 and increase Africa’s exports by $560 billion.

Looking at these figures, it can be hard to understand why more South African companies haven’t jumped on the bandwagon in the seven years since the agreement was signed. Unfortunately, investing in Africa is not as simple; the AfCFTA is designed to facilitate intra-African trade and reduce red tape significantly, but business is still business and knowing your market is critical to the process.

As we approach Africa Day on 25 May, it’s a perfect time to reflect on the future of Africa. This continent is wealthy – in natural resources, in cultures, in young populations and in potential – but it is also incredibly complex. Every country has its own history, languages, economy and way of thinking, all of which can make or break the success of a business entering this environment.

Take automotive manufacturing as an example. To establish a presence in any African country, a manufacturer would first have to consider what potential customers would be able to afford, and whether or not they would be able to compete in a market flooded with grey imports. The fuel quality standards and the state of the roads would influence which products would stand a greater chance of success within that market. The company would give preference to a country whose government is stable and has strong policies and incentives for investment in the local economy. Then, if the intention is to set up manufacturing facilities instead of simply importing, one would need to consider the cost of logistics, tariffs, the level and quality of education and training for its potential workforce, and the cost of services such as electricity – to name a few.

Or, to put it more succinctly: there is no one-size-fits-all approach in Africa. Any exporter considering an expansion into Africa – as they should, thanks to the AfCFTA – needs to do extensive research and understand who would be on the receiving end of their products, and then adjust accordingly.

Another critical factor lies in local partnerships. With a partner on the ground, any exporter’s understanding of their new market would be improved tenfold, and they would have the benefit of being associated with an entity that already has the trust of this new customer base.

It may seem that I am seeing more challenges than opportunities; this is not the case at all. I believe in Africa and its economic potential; I encourage South African exporters to grasp all the opportunities the AfCFTA will bring. But knowledge is power, and when it comes to Africa, we can never make the mistake of overlooking the uniqueness of each country on this continent.

Any companies looking for opportunities in Africa should reach out to Exporters Eastern Cape for assistance in identifying the markets, and to be guided through the challenges noted above.

This Africa Day, let us celebrate this uniqueness, this abundance of opportunity, and our ability to be a part of the continent’s success story.

By Quintin Levey, Exporters Eastern Cape Chairman