Doing Business in Africa: Navigating the High-Risk, High-Reward Markets of Nigeria and Côte d’Ivoire

Africa is full of opportunities, but it is not always easy. Some countries have fast-growing markets, new industries, and young people ready to work, but there are also challenges like politics, money, and safety.

Sompa & Partners are tracking these opportunities closely through their Q2 African Risk Dimension Report, which analyzes risks and opportunities across the continent. The report aims to assist investors understand political, economic, social, security, and infrastructure risks in key markets. 

As Yaw Sompa, a confounder of the firm, puts it: “Our single goal is to increase your likelihood in doing business in Africa and succeeding on the continent.”

In this article, we focus on Nigeria and Côte d’Ivoire, two West African countries with very different opportunities and risks, helping investors understand where opportunity meets risk, and how strategic preparation can make all the difference.

Nigeria: Big Market, Big Challenges

Nigeria is Africa’s most populous country, with over 230 million people. That means a huge consumer market and a growing workforce. Industries like fintech, entertainment, manufacturing, and energy are booming. 

As Yaw Sompa says: “Nigeria presents significant opportunities, a significant market size for purpose of doing business…amazing opportunities, but some significant risks as well.”

The risks are real. Politically, Nigeria can be unpredictable, with weak institutions, corruption, and ethnic or religious tensions. Economically, inflation is high (around 27.5%), currency value fluctuates, food insecurity is widespread, and the country depends heavily on oil revenue. Security challenges, from Boko Haram insurgencies to kidnapping and cybercrime, add layers of risk. Infrastructure problems, including unreliable electricity and congested transport, make doing business harder.

Yet, Nigeria’s challenges also create opportunity. Companies that plan carefully can thrive. Yaw Sompa recommends:

“Build a government engagement function, or outsource your government engagement proactively…so that you can be a friend of the government, or at least understand the pace of government in Nigeria.”

Investors must also hedge against currency volatility, embed strong compliance practices, develop security frameworks, and build deep local partnerships. Those who do are often rewarded with outsized growth.

Côte d’Ivoire: Opportunity With Caution

Côte d’Ivoire is smaller than Nigeria but has grown steadily. It is a hub for French-speaking West Africa, and its people need more infrastructure, energy, and services. Urban areas are relatively developed, and the population is young (median age 18), creating opportunities for a dynamic workforce and consumer base.

But according to Sompa & Partners, political risk is high. The October 2025 elections could bring unrest. The current president is running again while key opposition leaders are barred. Past elections have sometimes triggered violence, and early signs suggest tensions are brewing. 

Economically, Côte d’Ivoire depends heavily on cocoa, so fluctuations in global cocoa prices can affect business. There are also challenges like slow courts, corruption, and security concerns near northern borders.

Sompa & Partners advise preparation and resilience. Yaw Sompa notes: “Build continuity and security plans in advance. Stress-test financial models against currency or disruption shocks. Stay as legally and politically neutral as you can, while embedding strong governance.”

Investors who anticipate political or economic shocks, seek local expertise, and plan carefully can find success in Côte d’Ivoire.

Comparing Nigeria and Côte d’Ivoire

Both countries offer big opportunities, but the risks differ. Nigeria’s challenges are multi-dimensional: political, economic, security, and infrastructure risks all combine. Côte d’Ivoire, while more economically stable, is politically sensitive and reliant on a single commodity.

Nigeria rewards those with strong local networks, governance, and operational resilience. Côte d’Ivoire offers growth with relative economic stability, but investors must watch politics closely. In both cases, preparation is essential.

So what?

Doing business in Africa is not for the faint-hearted, but it is where opportunity meets strategy. Nigeria and Côte d’Ivoire are both growing markets with real potential, yet the risks are significant. Investors who ignore politics, currency swings, security, or local laws will struggle.

The takeaway is simple: preparation is everything. Understand the local market, plan for disruptions, build strong partnerships, and invest in local knowledge. For those who do, the rewards can be substantial, access to large, growing markets, a young workforce, and sectors full of innovation.

As Yaw Sompa says: “High risk in Nigeria doesn’t mean ‘no-go.’ It means a high barrier to entry which may actually mean high reward for those who plan smarter than the competition.”

Key Takeaways for Investors

• High risk does not mean no opportunity, it can signal high reward for those who plan carefully.
• Nigeria requires careful management of politics, money, security, and infrastructure.
• Côte d’Ivoire is more stable economically, but elections and political tensions can disrupt business.
• Hedge against currency volatility and stress test financial models.
• Follow local laws, embed governance, and get advice from experts on the ground.
• Build strong partnerships and plan for potential disruptions.
• Pay attention to young workers and consumers, they are key to long-term success.

Insights from Sompa & Partners, presented by Yaw Sompa

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