According to a survey carried out by McKinsey, governments are second only to consumers in affecting the economic value of a company. Some senior executives who were interviewed for the survey went so far as to claim that it is their governments – and not their customers – which are more critical to the fortunes of their business.
In other words, if you want your business to succeed, better be on good terms with the government.
That’s exactly what a government affairs firm can help you achieve in Africa – though that’s not the only advantage which you can expect to get. Below-mentioned are some of the ways hiring a government affairs firm can help your business in Africa.
1: Mitigate Risk to your business
In the developing economies like those of Africa, there’s always a danger that the political decision-makers could churn out a policy detrimental to your business interests. Having a government affairs firm, therefore, is necessary if you want to mitigate this risk.
By using their contacts in the governmental circles, such firms make sure that your business has seat at the table when policy matters which might affect your business are being discussed. So you can make sure that your voice is heard and any policy which might harm your business interests is kept at bay.
2: Get easier access to capital and infrastructure
According to yet another survey by McKinsey, executives with companies in the developing world – like those in Africa – believe that if their business has good relations with the government of the day, they could get easier access to capital and infrastructure.
Though it doesn’t do that directly – a governmental affairs firm, by helping you build amicable relations with the government – indirectly benefits you. So that when you have plans of expanding your business – and want credit on easier terms – you could use these relations to fulfill your ambitions.
3: Influence governmental policy
Once your business is on good terms with the government – and you’re able to converse directly with the key decision makers – you stand a chance to influence governmental policy. And by doing that, you can protect the interests of your business.
There’s nothing illegal in influencing governmental policy, mind it. Rather, when you’ll be giving your suggestion on a policy matter, you’ll be making sure that not only the interests of your business but also that of the community it serves are kept in consideration.
4: Gain a voice for your business in governmental circles
A government affairs firm can help your business gain a competitive edge by establishing its representation in the corridors of power. It does that by involving your business in national organizations and agencies which aren’t only creating but also influencing policies that might affect your business.
Therefore, by making sure that your voice is heard by those in power, a government affairs firm in Africa can ensure that the federal government, as well as its relevant agencies, know the benefits your business offers to the community. So you could prevent the emergence of any regulation – or at least tame it – which might end up adversely impacting your business.
According to a research paper published by Boston University Economist James Bisson, since the year 2000, political activity and governmental regulation are tied to company profits.
In other words, if your business could influence the government policies and regulations, it might end up bringing in more profits. Therefore, if you want your enterprise to harness its potential in Africa, it’s time you get the help of a government relations firm – a lobbying company.