Successful business in Africa

Reasons for success of a firm in Africa

Africa today is witnessing a continuous economic growth. With an increasing rate of population and urbanization, the continent offers several opportunities in the real estate industry, therefore drags more investors. Addoha group is one of Africa's leaders in the real estate sector and the first real estate operator quoted in the stock exchange of Casablanca, Morocco. In this paper, we will discuss the reasons of Addoha's success in Morocco, explaining the business strategy adopted by the group.

Addoha was created in 1988 by Mr Anas Sefrioui; its activity consists on the construction, financing and commercialization of a low-cost medium sized and high standard housing program. The company counts today a turnover of more than 7.12 billion MAD, and is present in more than 7 different African countries.  

The ADDOHA Group distinguished itself by a unique business model, which has been developed around a differentiation and innovation strategy. The key factors of its success are mainly:

• The partnership with the government: for more than 20 years the group has established itself as the privileged partner of the state authorities to build better cities and to offer a better life to its citizens. The group has concluded several economic and social conventions with the state to build various economic housing programs in several cities of the Kingdom in order to fulfill the gap of housing.
• A diversified brand strategy: the group has established itself on the market by offering a diversified offer meeting the expectations of all socio-economic categories. The group offers economic housing, real estate Average Standing and High Standing as well as the residential tourist.
• The group has integrated a unique expertise in all the stages of its value chain, from the identification and valuation of land reserves, to the design of projects with high innovation content and a coherent marketing strategy.
• A customer-oriented business process: the client satisfaction is the company's highest priority.
• A performing human capital: The employees of Addoha group are selected based on their know-how and also for their knowledge and ability to adopt the values and requirements of the company. (More than 676 contributors).
• The group has multiple partnerships: Its public partner is the Moroccan government (as stated above), while its private partner are: CDG group, JAMAI group, AL Qudra holding...
• Advantageous pricing conditions (banks, notaries) for the customers
• Strong market reputation and trust built on the group's strong communication and marketing strategy

The expertise of the company, its ability to cover all market segments,  its capability to adapt its project to the local needs and its Leverage banking partnerships allowed the group to expend and enter other African countries which share the same housing shortage such as Congo, Senegal , Ivory coast , Cameroun, Tchad ... However, as any company that tries to enter foreign market Addoha group faced several challenges.

References:

• Groupeaddoha.com. (2018). ADDOHA ET CIMENTS D’AFRIQUE INVESTISSENT PLUS DE 3 MILLIARDS DH AU GHANA – Groupe Addoha. [online] Available at: http://www.groupeaddoha.com/fr/addoha-et-ciments-dafrique-investissent-plus-de-3-milliards-dh-au-ghana-2/

• Maghress. (2018). Addoha poursuit son expansion en Afrique. [online] Available at: https://www.maghress.com/fr/lesoir/70790

• partenariats, C., Addoha, G. and ADDOHA, P. (2018). Presentation Groupe ADDOHA. [online] Logement.fm6education.ma. Available at: http://logement.fm6education.ma/Conventionspartenariats/GroupeAddoha/PresentationGroupeADDOHA.aspx

• Groupeaddoha.com. (2018). [online] Available at: http://www.groupeaddoha.com/sites/default/files/PRÉSENTATION%20AUX%20ANALYSTES%20DU%20PREMIER%20SEMESTRE%202017.pdf

...