Investigating an entry mode for South African agribusinesses into sub-Saharan Africa

Abstract

Few regions in the world equal the potential for agricultural development that sub-Saharan Africa (SSA) possesses. Sub-Saharan African countries are becoming politically more stable and competitive and as a result international investors are paying attention. South African agribusinesses are in a unique position to facilitate and benefit from agricultural developments in SSA, yet agribusinesses that have tried have experienced mixed results. This study investigates the entry strategies of leading South African agribusinesses that have ventured into SSA countries. Semi-structured interviews were held with nine prominent South-African agribusinesses to gain insight into their decision processes, market selection criteria and the challenges they experienced to determine the key elements of their successful market entry into sub-Sahara Africa. The findings were compared to literature and from the insights gained; a model containing the key success factors was developed. The key success factors captured in the model were: establishing a local partnership, sending your best people, long term and contingency planning, agility, diversification, connecting with customers, patience, humility, respect, support and producing quality African products. This model can be of aid to inspiring South African agribusinesses that are in the process of expanding into sub-Sahara African markets.