The South African rand has gained 13% against the dollar and the wider African market is emerging quickly. Taswell Papier and Scott Nelson explain the unique skillset needed to break into the African business

Doing business in Africa provides unique challenges and endless opportunities. With fewer conflicts and economic growth rates that are now competitive with those of other developing regions, Africa has experienced positive change and has a substantial offering.

However, the business environment, including social, economic, legal and political, is complex, and doing business in a rapidly expanding region requires a different set of skills.

In South Africa, the transition from apartheid to constitutional democracy has generally been an impressive path of peaceful negotiation. The African National Congress (ANC) has won landslide victories in each democratic election held since the end of apartheid in 1994. 2009 has seen the country's fourth general election since 1994, with the ANC obtaining a 65.9% majority and Jacob Zuma sworn in as President in May 2009.

Since this year's 22 April election, the rand has gained 13% against the dollar, the benchmark South African stock index has advanced 26% and credit default swaps, the cost of protecting against a default, have dropped by more than a third.

Robust economic growth since apartheid's abolition has seen a favourable decline in income poverty despite inequality still existing between race, gender and location. However, the Government continues to instil initiatives to eradicate these problems and build a greater future.

The Government has targeted five key areas for improvement over the next three years, namely job creation, education and skills, healthcare, rural development, and the fight against crime and corruption. The state is expected to spend R841.4bn (£68bn) in total in 2009/10, with the largest allocation for economic affairs, education, social protection, healthcare and public safety.

In addition, a sound fiscal position has allowed the South African government to sustain public service delivery while increasing spending on fixed capital investment to boost economic growth and create employment. This, together with a fast-growing economy and greater integration with the rest of the world, makes South Africa the most obvious gateway to the rest of the continent.

Despite the global recession, South Africa has emerged as a key market for global investors and it is particularly interesting that emerging market economies, on the back of the continued high growth and market size of China and India, have out-performed those of developed countries in 2009. In a 2008 report titled 'Tomorrow's Markets', the Economist Intelligence Unit ranked South Africa eighth in a top 10 list of 'new wave' investment markets, and 2009 saw the country move up to fourth position. In addition, in a recent UK Trade & Investment survey of more than 540 high-level business executives across 19 business sectors examining global business attitudes to emerging markets in light of the global downturn, South Africa came fourth.

The FIFA 2010 World Cup is undeniably a major event for South Africa and with between 500,000 and 600,000 people expected to visit during this time, it is also an opportunity to showcase what is one of the most beautiful countries in the world, as well as a noteworthy competitor in today's emerging markets.

The southern half of the continent holds perhaps the best potential. With democracy and free enterprise becoming common in many African nations, the continent shows promising emerging markets, particularly in areas such as agri-business, infrastructure and tourism. Africa is changing and the risk of doing business has already begun to decline and is expected to continue its decline.

Doing business in Africa will take significantly more personalised transactions than gaining entry into a more mature market. Connecting with people is important – sitting down and sharing a meal is the African way of building relationships. Other countries do not necessarily understand this way of doing business, but it is no more difficult than anywhere else; it just requires a different set of skills and understanding, and often a large dose of patience and tenacity. Often creativity is also needed to adapt to local conditions and demand, and this comes from experience and local know-how.

While an effort has been made to harmonise a broad range of legal systems which previously covered a wide disparity in business law, codes, rules, regulations and local conventions affecting businesses, it is still vital that you have an experienced partner to avoid the pitfalls that are not obvious to those without experience on this continent.

World Bank, Africa's leading financier, continues to offer substantial support, making a difference in many areas such as poverty, agriculture, health systems, education, infrastructure and climate change.

Added to this, there is an abundance of business opportunities for the right investor and substantial changes are already being seen. The telecommunications sector, for example, is experiencing immense growth: this year alone, substantial fibre optics cable deals, such as TEAMS in June and SEACOM in July confirmed Africa's place as one of the leading emerging markets.

The ongoing growth and development and ensuing opportunities on the African continent will no doubt mean that global investment and business leaders will continue to seek rewarding opportunities in Africa. Having the right business partner is a sure way to alleviate the potential pitfalls, and being adequately aware of the conflicting legal, regulatory and taxation requirements will ensure success in an exciting and, as yet, unsaturated emerging market.

Taswell Papier is director and Scott Nelson head of the Africa desk at Edward Nathan Sonnenbergs.