Why Due Diligence Is Non-Negotiable
The single most common reason international companies fail in African markets is not regulation, not logistics, not pricing — it is partnering with the wrong people. Every year, companies lose millions to unverified intermediaries, shell companies, and well-connected individuals who promise access but deliver nothing.
Proper due diligence is not optional — it is the foundation of every successful African market entry.
What to Verify
1. Company Registration
- Nigeria: Corporate Affairs Commission (CAC) — verify registration number, directors, and filing history at cac.gov.ng
- Ghana: Registrar General's Department — company search available online
- Kenya: eCitizen Business Registration Service
- Zambia: Patents and Companies Registration Agency (PACRA)
Red flag: Company cannot provide registration certificate or certificate details do not match claimed business.
2. Tax Compliance
- Request Tax Identification Number (TIN) and verify active filing status
- In Nigeria, verify with the Federal Inland Revenue Service (FIRS)
- In Ghana, check Ghana Revenue Authority (GRA) compliance certificate
Red flag: Partner claims tax-exempt status or cannot provide tax clearance certificate.
3. Banking Relationships
- Confirm the company holds active business bank accounts
- Request a bank reference letter (standard practice in African business)
- Verify through the bank directly — not through documents provided by the partner
Red flag: Partner insists on personal bank accounts or cryptocurrency payments.
4. Physical Presence
- Verify office address exists — Google Maps/Street View helps but is not sufficient
- Conduct a physical site visit or hire a local verification service
- Check for warehouse, factory, or distribution infrastructure if relevant
Red flag: Virtual office address, no physical signage, or reluctance to host visitors.
5. References & Track Record
- Request 3-5 trade references from existing clients or suppliers
- Contact references directly — verify independently
- Check for membership in industry associations or chambers of commerce
Red flag: No verifiable trade history or references from unknown entities.
Where to Get Help
Professional due diligence services include:
- Consultancies with on-ground presence (like Afrosum) that can conduct physical verification
- Commercial risk databases (Dun & Bradstreet, CreditInfo Africa)
- Embassy commercial sections — Turkish embassies in African capitals maintain business facilitation desks
- Chambers of commerce on both sides can provide introductions to verified businesses
The Afrosum Approach
At Afrosum Consultancy, due diligence is built into every engagement. Our Partner Verification service includes:
- Company registration and compliance verification
- Physical site visits with photographic documentation
- Director background checks and reference validation
- Financial health assessment where publicly available
- Written verification report with risk assessment and recommendations
Trust is not a shortcut — it is built through systematic verification. The cost of due diligence is always less than the cost of a bad partnership.