In recent years, numerous South African companies have expanded to Nigeria. South African companies can’t really be faulted for trying their hand at the Nigerian market – after all it is difficult to ignore a population of over 180 million, and an average annual GDP growth rate of above 8% between from 2000 to 2010. There must have been significant pressure on South African CEOs to establish a footprint north of the Limpopo – and quickly, before the window of opportunity closed. Perhaps South African companies looking to enter Nigeria should learn from Pioneer Foods’ game plan. According to the company, the transaction is aligned to its low-risk African acquisition strategy, which focuses on smaller yet scalable operations.

Source: The North Africa Journal August 24, 2016 09:45 UTC