Impact of Africa Culture and Business Customs on Business Management East Africa. Essay Example

RELIGION

Religion influences every aspect of life, defining morality and ultimately shaping our lives. This influence extends to the business environment, which is influenced by the predominant religion. In East Africa, Christianity is the majority religion, followed by Islam and a smaller Hindu population.

Before the arrival of these religions in East Africa, the communities practiced African traditional religions, which some groups still adhere to. Religion affects the business sector by restricting working days. Christians refrain from working on Sundays due to their observance of worship on this day. Seventh Day Adventists are obligated to refrain from all activities on Saturdays except for worship. Any form of business transaction is seen as sinful and disrespectful to the sacred day.

This is a time when certain organizations have to exclude potential workforce because they are unable to work on specific days. In the Islamic faith, it is considered inappropriate to give or receive interest. When engaging in business transactions, they do not request interest from those involved and they also refuse to pay interest. Consequently, financial institutions have developed specialized service packages that adhere to the principles of the Islamic faith. In Kenya, both Kenya Commercial Bank and Barclays Bank provide such products.

DRESSING

When meeting new people, it is essential to make a strong first impression as it can impact how others perceive you. This is particularly crucial in business meetings as it may determine your ability to successfully negotiate a deal. In East Africa, there is no set dress code due to the influence of Western culture. However, the way you dress depends on your profession or type of business. Formal

attire is common among office workers and bankers, and your position within the company also affects what you wear.

People in senior management typically dress formally, as they represent the organization's image. On the other hand, lower-ranking staff members dress less formally, sometimes even wearing casual attire. In East Africa, the official working days are Monday to Friday, although some individuals work on weekends. As weekends are not considered official working days, many people choose to dress casually during this time.

To establish a sense of uniformity and identity in various national and international occasions, countries have developed specific national dresses to represent their culture. In Kenya, the Ministry of National Heritage has created the Kenya national dress, although it has yet to gain widespread popularity among the citizens. On the other hand, Burundi and Rwanda have successfully implemented national dresses for their respective countries.

RESPECT FOR ELDERS

In East Africa, age holds significant value as one of the essential factors in life. Throughout Africa, age is generally regarded as a valuable asset.

As individuals age, it is commonly believed that they gain wisdom. Older individuals are seen as having more life experience compared to younger individuals. Despite lacking qualifications, they tend to hold higher level positions. Younger individuals may not challenge the viewpoints of their elders when it comes to making business decisions. Even if they disagree, they are expected to show respect by remaining silent. This is why many influential positions in Africa are occupied by older individuals who have made crucial decisions in various life situations.

In business management, having excessive respect for elders can have negative implications. It can hinder younger individuals from expressing their ideas

and opinions in decision-making processes. Younger people often lack confidence in the presence of their elders. This can be observed in political leadership, where the Presidents of the Three Original East Africa countries have an average age of 65 years. This demonstrates that older individuals are typically entrusted with leadership roles in various organizations, including businesses.

In East Africa, there has traditionally been a preference for business organizations to hire experienced individuals with strong leadership skills for their management teams. However, a shift in this trend is becoming apparent as more CEOs under the age of 40 are emerging. This change can be seen in commercial banks such as Standard Chartered, where some of the youngest CEOs in the region now hold positions.

It is important to note that this transformation does not mean that older generations have been replaced; instead, they have assumed different roles within these organizations. Specifically, they now serve on boards to provide valuable advice and guidance to the management team.

THE OVERLOOKED IMPORTANCE OF TIME MANAGEMENT IN EAST AFRICA

In East Africa, the concept of time management is often undermined as people prioritize socializing and discussions over work. The popular phrase "There is no hurry in Africa!" reflects the laid-back attitude towards time. Instead of being punctual, individuals focus on establishing connections rather than adhering to strict schedules. Time is perceived as flexible, with tasks that cannot be accomplished today being postponed until tomorrow. It is customary for individuals to arrive hours late to meetings or events.

The inadequate timeliness in business management has resulted in substantial delays, where tasks that should be completed within a week often end up taking multiple months. Coastal towns

in East Africa, including Mombasa, Dar es Salaam, Lamu, and Malindi, are notorious for their subpar time management practices. It is believed that inhabitants of these towns prioritize leisurely activities and spend their days unwinding beneath coconut trees. Even during official working hours, they prolong lunch breaks to socialize with friends without considering the negative impact on productivity. However, this situation does not apply to the capital cities of East African nations.

The presence of people from various cultures conducting business in capital cities has led to a different approach to managing time. One example of this is the influence of Asian culture in the region, where a strong work ethic has enabled successful business ventures. As a result, locals have been challenged to adopt this style, recognizing the importance of valuing time as a valuable resource. These cultural dynamics impact business operations, requiring effective management to balance productivity with opportunities for social interaction among workers. Failing to navigate this effectively can pose difficulties for foreigners unfamiliar with African attitudes towards time in running businesses in East Africa.

GENDER ROLES

In African culture, gender roles were well-defined. One gender was responsible for providing food and security to the family, while the other focused on maintaining cleanliness and supplying clothing. Despite changes brought about by civilization and education, certain professions are still associated with specific genders. Secretarial and nursing positions are typically considered women's jobs, while driving and mechanics are predominantly male-dominated.

Gender discrimination in certain professions limits opportunities for workers and results in their exclusion. Numerous companies have predominantly male upper management, leading to the neglect of qualified women for leadership positions. Additionally, even when women do attain

high-ranking roles, they often face unequal pay compared to men. To rectify this inequality, East African governments have implemented Equal Employment Opportunity Acts that protect individuals' rights and strive for fairness and employment prospects for all members of the workforce.

Despite attempts to eradicate gender bias in workplaces, it continues to be a prominent issue in today's work environment. In Kenya, the parliament has approved a bill mandating that 30% of government positions be held by women. This requirement is anticipated to extend to the private sector as well.

GREETINGS

In East Africa, greetings hold immense importance and it is customary for individuals to engage in multiple rounds of greetings. Handshaking is the prevailing form of greeting in this area, varying from a brief handshake to a lengthier and occasionally enthusiastic one.

When interacting on the street, individuals often greet one another by shaking hands to establish a sense of familiarity. In business settings, it is customary to shake hands before meetings or negotiations as a gesture of politeness. Women are generally expected to receive handshakes rather than initiating them. If both parties extend their hands, it indicates a heightened level of respect. Therefore, when engaging in business with East African or any African businessman, anticipate exchanging handshakes prior to the official commencement of the meeting as an indication of respect.

Not acknowledging or shaking a person's hand when entering a room is considered extremely impolite. Handshakes are also crucial in finalizing business deals.

DECISION MAKING

In several regions of Africa, decision making is mainly centralized with minimal authority delegation. Those in higher positions have full control over business matters.

The individuals with the highest level of authority often avoid delegating their responsibilities

to subordinates due to a significant power gap. This reluctance prevents those in positions of power from being questioned, regardless of the negative consequences of their decisions. Consequently, this greatly hinders the decision-making process, especially within business management. Even small-scale decisions can be delayed because the person in charge is unavailable and does not delegate tasks.

Delaying the decision-making process is a common behavior among decision makers, driven by their own self-interests. This behavior negatively affects businesses by slowing them down and hindering their performance. Moreover, it can lead to a loss of customer loyalty due to a lack of trust.

CORRUPTION

Corruption refers to the unethical utilization of authority for personal gain. This includes situations where different individuals are subjected to different rules. Corruption encompasses activities such as bribery, extortion, and embezzlement. Many African countries exhibit a strong inclination towards corruption, with individuals often offering something in exchange for services. Establishing connections is frequently necessary to secure business contracts.

Without a contact person in the department to facilitate your tender, doing business with governments can be challenging. This issue is prevalent in Kenya, where corruption scandals have severely impacted the economy under successive government administrations. One notable scandal is the Goldenberg scandal in the 1990s, which revealed excessive subsidies for gold exports by the Kenyan government. Goldenberg International received 35% more payment in Kenyan shillings compared to their foreign currency earnings. Although supposedly aimed at earning hard currency for the country, it is estimated that this scheme cost Kenya over 10% of its annual Gross Domestic Product. Additionally, there are suspicions that little to no actual gold was exported as part of this scandal.

The scandal seems to have

involved political corruption at the highest levels of the government of Daniel arap Moi. Officials in the current government of Mwai Kibaki are also implicated. Goldenberg was initiated by businessman Paul Kamlesh Pattni, who has not been convicted of economic crimes due to insufficient evidence. The recent scandal in the same country is Anglo leasing. Other East African countries face similar issues, although they have not been officially recorded.

All these practices have a negative impact on the business environment. Instead of relying on their performance, companies' growth is dependent on the connections they possess. Corruption puts a heavy burden on individuals who are unable to offer something in exchange for a service. If one fails to give a bribe, they will be denied services.

CONCLUSION

Africa presents a large market, attracting more organizations to conduct business here. Additionally, numerous local businesses are being established. East Africa, due to its favorable location, will likely host a greater number of regional headquarters.

Unless business organizations understand African culture and its impact on business, they will encounter a hostile business environment. Africans also have a role to play, as some of their cultural practices can be detrimental to business. Consulting with spirits for personal gain creates mistrust and animosity among business partners. A skilled manager can find a way to integrate African culture and business practices to achieve desired outcomes.

REFERENCE

1. 1. Harris, Philip R and Robert T. Moran: Managing Cultural Differences: Leadership strategies for a new world of business. Fourth (4th) Edition (Houston, Gulf Publishing, 1979.) 2.
2. Fons Trompenaars and Peter Wooliams: Business Across Cultures (Capston Publishing Ltd., 2003) 3. Hale, Mary, 1999.

"He Says, She Says: Gender and Worklife," Public Administration Review,

Vol. 59, Issue 5, 4.