Dangerous Bedfellows - Politics and Doing Business in Africa

When doing business in African, one is always tempted to use friendly politicians to advance processes. Sometimes friendly politicians and people in ‘high’ places will help expedite the granting of a mining license, a timber concession, an oil block allocation or a telecom license. This type of help can be very profitable as it will help bypass the red-tape laden bureaucratic systems of African countries. Thus there are many professionals who sell their services by claiming that they know the 'right' people to fast track business processes in African countries. Many business folks find these services appealing because as the popular adage goes “in business time is money”. One must note however that there are many pitfalls in mixing business with politics in Africa. You must tread carefully so that your business is not labeled a benefactor of a particular political party or faction. Four years or eight years is always around the corner and the reins of power change very quickly. Once your business is labeled, the business may become the target of political wrath once there is a power change.

Here is what you have to do to avoid being weather the storm. Always insist that due process is followed in all business processes. The politician might help expedite your concession or license, but make sure that you comply with all stipulations of the law and any administrative procedures. The next political party will have very little ammunition (evidence) to use to withdraw your license or concession. They certainly will have noting on you to impute killer fines on your business. As much as possible, never attend a political rally or make political pronouncements in public. Although many African countries have turned the corner, there are still a few relics of the past that exist.