20110311
reuters

JOHANNESBURG (Reuters) - Doing business in Africa is not for the faint-hearted and requires patience, good local staff and above all respect for the continent, bankers and executives say.

Speakers at this week's Reuters Africa Investment Summit said that with Africa firmly on investor radars and seven sub-Saharan African countries expected to be among the world's 10 fastest growing economies over the next five years, it cannot be ignored.

"Africa's time is now," said Jonathan Auerbach, co-founder and Managing Director of New York-based brokerage Auerbach Grayson, who has been doing business on the continent for 15 years.

"The developments throughout Africa are quite extraordinary for those of us who have been traipsing around this patch."

Despite lucrative prospects for investment banks involved in transactions ranging from urban renewal projects in Kenya to project finance for a road construction project in Nigeria, bankers needed local contacts, knowledge and staff.

"If you are going to briefcase in professionals from London, New York and other places, you are going to find it tough. If you are prepared to invest in local talent and train them on the ground, I think it is a lot different," said Clifford Sachs, CEO Africa for Rennaisance Capital.

RenCap has representative offices in six African countries with experienced local staff on the ground, unlike bigger investment banks which typically fly in dealmakers -- so-called "briefcase bankers".