Intercultural Business Consulting (Japan)

Transcription

1 Critical Success Factors of Relocation into Africa Abstract Africa is a 'hot' investment destination, no pun intended, and Japanese corporates are researching and actively pursuing opportunities. The following White Paper addresses some of the success factors for those contemplating relocating into the continent. This paper addresses critical fundamentals in the assignment of employees into Africa for HR and Mobility professionals, and all those involved in relocation planning. The paper focuses on risk assessment, time requirements and initiation demands; the preparation factors that can make or break a successful relocation, and the return on investment anticipated for the business. More specifically, the paper takes a continent-wide overview of issues concerning immigration and work permits, security and welfare, health and medical services, and local laws, etiquette and culture. Introduction Africa is vast and perhaps more importantly hugely complex. The second largest Continent on earth, occupying 30,370,000 km2 and makes up twenty-four percent of the Earth s land mass across six time zones and fifty-four countries. That s big! Additionally, with more than fifteen percent of the total global population, at over 1.1 billion, many hundreds of ethnic groups and languages, and an estimated median age of 19.7 years, it s a diverse and dynamic demographic. Over the years there have been various forecasts and speculations on Africa s potential economic growth, with opinions often stating that Africa s time has come. Many forecasts have been unrealised, for various reasons, some of which we will address. However, the commodities demand over the last few years has led to significant foreign direct investment (FDI). Although, the current falling commodities demand particularly from China, and an increasing pull-back of international banks from the Continent, the outlook has taken a step back. With economic and social change, and Africa s huge size and natural resources, the Continent continues to have potential. The International Monetary Fund (IMF) recently reported South Africa as the Continent s most developed and diversified economy, while falling into third place behind Nigeria and Egypt - citing domestic and political issues. At the end of 2015, South Africa s GDP was estimated to be $313 billion compared to Nigeria s GDP of $490 billion. Having narrowly avoided 2017 IBC GLOBAL ALL RIGHTS RESERVED P a g e 1

2 downgrading in June 2016 by the major credit agencies to the so-called junk status, South Africa still remains the favoured country for start-up funding and, arguably, has the highest investment infrastructure across the Continent. The country has a lot to do in a relatively short timescale. For many years Africa as a Continent has suffered from various problems, not just economic. Political and social instability, armed conflict, terrorism, crime, corruption, violence and health concerns which, to varying degrees depending on location, all need to be addressed in the context of an international assignment. Africa can offer significant economic returns but is not a place to rush into without preparation, precautions and a high degree of patience. From a relocation perspective it is rare that assignees truly have a Continent-wide focus or responsibility, even when Africa is included in a job title. However, focus on a single region or country does not diminish the need for adequate time and preparation to achieve a successful relocation and the return on investment expected from the assignment. Once an assignment decision has been made, pressure occurs from having multiple stakeholders not least the business line and assignee to get things moving. This paper addresses some of the key preparation and time criteria factors that all stakeholders should be aware of: to ensure regulatory compliance; risk and duty-of-care factors are adequately addressed; and provide the right data. A position that could help push-back on unrealistic and potentially damaging demands - from both an assignee and company perspective. Immigration & Work Permits Entry and acquiring the right to work in a host location is usually the first consideration in planning an international assignment. Whatever the destination, bringing together the documents for the assignee plus any accompanying family members, home employer and host employer, can be daunting, onerous and time consuming. The facility for accessing forms and initial application online have made some elements a little easier, but there is much that remains. The countries of Africa are no exception to the above and are likely to become more stringent, particularly in the current political, economic and security environment. This results in additional requirements, increased scrutiny, delays in processing of work permits, and increases in the number of rejections - sometimes for simple clerical errors. The additional requirements can include significant documentation and form submission, security checks on applicants before approval, submission of national insurance cards and passports of individuals who deliver the documents, meeting host country assignee quota approval, personal assignee interviews at the 2017 IBC GLOBAL ALL RIGHTS RESERVED P a g e 2

3 home country embassy of the host country, as well as demanding that the local employer prove that they have taken steps to find a local national employee, and documenting an understudy to the assignee. The additional requirements inevitably prolong, and often delay, the timeline from assignment initiation to relocation to the host country. All stakeholders should be aware of the requirements when formulating strategies and timing expectations. Is a relocation into Africa simple? From the procedural and document specifications already mentioned, it s apparent that patience is necessary to navigate a work permit application through to a successful conclusion. Then, factor some of the areas of risk and preparation needed for the assignment strategy. Security & Welfare While many assignments based in Africa are enjoyable, rewarding and issue free experiences, preparation beforehand is essential from an individual and company perspective. Economic levels of growth in Africa over the last fifteen years has seen major social disparities, wars, terrorism and crime. It s argued that too much of the growth has enriched a narrow elite instead of being spent on infrastructure, health or education, which could foster development and reduce disparities amongst its people. The underlying social, economic and political conditions across the Continent of Africa have the potential to initiate major change and instability. A fundamental element of a company s mobility strategy, ahead of any relocation, is therefore contingency planning. To understand current and potential security threats across a broad range of issues. Thereby, anticipating risks to security, response measures and ultimately assignee safety. Attention to government travel advisories and updates from specialist security firms, as well as adequate assignee briefing, need to be factored into relocation planning and timing, and continued throughout the assignment. While inner city living and travel can be seen as relatively low risk with some basic precautions, exposure to higher risks of security often arises outside major conurbations - whether work or social related. Risk of encountering drug related crime, robbery and kidnapping rise significantly. The assignee needs to be aware of location risk and the company must proactively prepare. Waiting for an event to happen is not an acceptable strategy, from both a timing, reaction or reputation perspective. The 2015 Global Peace Index (GPI) published by the Institute for Economics & Peace, ranks 162 nations according to their level of peacefulness. The index gauges global peace using three broad themes: the level of safety and security in society, the extent of domestic and international conflict and the degree of militarisation. The ranking for Africa 2017 IBC GLOBAL ALL RIGHTS RESERVED P a g e 3

4 countries provides a good indicator of the welfare and security threat assignees may face. Across the continent, 32 countries are ranked in the bottom half of the index, 18 countries in the bottom quarter, and 6 countries in the bottom five percent. Security and corporate preparedness is not something to be trifled with and, as the ranking suggests, adequate briefing and response planning is an essential up-front requirement prior to assignees arriving in location. The Center for Strategic & International Studies also reported in late 2015 that Africa is heading into a tough period, and the effects on economic growth and investment flows will cause setbacks and potential volatile situations. Health & Medical Services All countries within the Continent of Africa can be seen as developing, therefore it is unsurprising that health issues and medical services vary greatly by location. Over 400 million Africans now live in cities. Sixty percent of these people live in slums with no access to basic services, so the potential for the spread of disease has grown. A recent Pew Research Centre survey revealed, when looking to 2016, Africans across countries indicated the top shared priority continues to be health care. While HIV/AIDS, Tuberculosis and Malaria numbers have indeed fallen, they are still of great concern. The World Health Organisation also reported earlier in 2016 that Yellow fever is a continuing issue with new outbreaks in Democratic Republic of the Congo, Uganda and Angola. Also, Lassa fever in Nigeria, Zika virus in Cape Verde, and Ebola showing gains in Guinea, Liberia and Sierra Leone. For the vast majority of assignees, the living conditions, locations and work activities minimise the risk of disease. However, minimising is not nullifying. Global Mobility strategies need to address this. Knowledge of the health risks prevalent in a particular location(s) and continuous updates of potential, or actual changes, are necessary. Briefings on health risks need to be built into the relocation and assignment, together with adequate time for any preventative measures to take effect. Taking a malaria tablet, for example, the day before leaving will do little to protect an assignee. Planning, briefing and timing are key. While significantly differing by location, there are some excellent hospitals and clinics should the need arise. But they are not plentiful. Identifying facilities that are available, by location, is critical. Plus, evacuation plans tested and put in place. Facts after an event is never an excuse. All potential issues need to be considered and factored into the overall Global Mobility programme planning, such as assignee pre-existing health conditions and any local health care payment nuances IBC GLOBAL ALL RIGHTS RESERVED P a g e 4

5 Local Laws, Etiquette & Culture Expected etiquette and cultural norms obviously vary greatly across 54 countries with multiple ethnicities, customs, laws, religions and practices. However, ignorance is rarely seen as an excuse. So understanding the location in which an assignee is operating is critical. All assignees need to be prepared for the environment in which they will be operating before getting on a plane. Some leading companies are now addressing the issues of cultural intelligence leading to cultural agility and an internationally ready workforce, ahead of any relocation and assignment. Issues can potentially arise from a range of expectations in regards to greeting, attire, meeting protocol and behaviour, through to tolerance and acceptance of different sexuality and gender identification, and the consumption of alcohol. All these need to be known beforehand. Corruption, in its many forms, is also an issue that needs to be understood. So that an assignee doesn t unwittingly bring serious repercussions to themselves or the business. Recognition of major corruption situations should be straight forward, if an assignee retains a clear head and sense of ethics. However, it is easy to be drawn into situations that can still have consequences. Without adequate planning and preparation companies leave themselves open to legal challenge, particularly with the responsibility of duty-of-care. Conclusion Immigration & Work Permits and Security & Welfare, Health & Medical Services and Local Laws, Etiquette & Culture are the four critical factors to be addressed in assignment planning for a successful relocation, and ultimately assignment, into Africa. There will obviously be other issues and concerns, often specific to a particular location, which will also need to be addressed such as; housing, cost-of-living, transportation, and education for any accompanying children. From a risk, timing and preparation perspective, if these critical fundamentals aren t considered, understood and clearly factored into the relocation and assignment, the anticipated business and career benefits could be lost to all the stakeholders concerned. Companies are already seeing the benefits of bringing Global Mobility issues, and expertise, to the planning table early on. The positive link between an organisation s success and the effective mobility of its workforce is evident, but there is must left to do. About the Author Clive Tanaya-Bloomer is a commercial HR professional specialising in international 2017 IBC GLOBAL ALL RIGHTS RESERVED P a g e 5

6 HR and Global Mobility. With an international business career spanning five continents including Africa, Clive founded a network of support for organisations in their international ambitions, and currently works with and advises many leading companies, through his company, IBC Global IBC GLOBAL ALL RIGHTS RESERVED P a g e 6