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An oil rig off the electricity shortages are costing the
coast of Angola. country US$100-billion in lost investment
Daunting challenges opportunities.
faced by businesses
in the country have Nigeria also ranks dismally in other
become even more areas, including cross-border trading
concerning in the (182nd). Merely clearing border formalities
wake of the oil on imports takes almost two weeks.
price slump
They represent obstacles that have
exasperated some international companies,
including US$5-billion annual revenue
retailer, Woolworths. The chain exited
Nigeria in 2013. “It’s a nightmare market.
It’s not worth a candle to us,” Woolworths’
CEO Ian Moir commented at the time.

Business conditions
have improved in the
past 15 or so years

More recently, hotel and casino
group Sun International announced its
decision to sell its 10-year-old stake in
the Federal Palace hotel in Lagos. “It has
become a nightmare being in Nigeria,”
says spokesperson Michael Farr. He cites
harassment of hotel staff by authorities
and a breakdown in relations with the
group’s Nigerian partner.

Challenges in Angola

Obstacles to doing business in Angola
parallel Nigeria’s, with its overall ranking
depressed further by having Africa’s
weakest judicial system. In the World
Bank’s Quality of Judicial Processes Index,
Angola scored just 1.5 out of a possible 18
– compared with a score of 13 by Africa’s
best performer, Mauritius.

Daunting challenges faced by
businesses in Nigeria and Angola have
become even more concerning in the wake
of the oil price slump. It left Africa’s two
largest oil producers chronically short of
US dollars to fund huge import bills. They
responded by rationing foreign currency to
finance imports and halting repatriation of
funds by foreign-owned companies.

The oil price crises in Nigeria and
Angola arguably represent force majeure-
type situations. However, Africa is littered
with many other obstacles beyond the

Issue 4 2016 strategicmarketingafrica 21