Africa Is Not One Country: FX Funding Experiences in South Africa and Nigeria

In the following chapter we elaborate on the heterogeneous requirements of doing business on the African continent with regard to exchange rate risks and foreign exchange (FX) availability. Africa is often seen as one country, but the challenges faced in the various countries can be very different. Major differences relate to the conditions of the financial system, the FX availability, and the exchange rate volatility. Thus, multinational companies operating in Africa are required to deal with these financial challenges on a case-by-case basis. There are several options—depending on the country—how Henkel approaches these challenges. Some practical experiences are shared on how to address this situation in two very different markets, namely South Africa and Nigeria.