The Friction Premium

There is a complaint I hear in every hotel lobby in Nairobi, Accra, and Lagos. usually from a Diaspora investor or a Western executive:

"Why is everything so hard here? Why does the paperwork take weeks? Why is the supply chain so messy?"

They see the Friction (the delays, the opacity, the complexity) as a bug to be fixed. But the "Quiet Authority" knows better.

Friction is not a bug. It is the Moat.

The Economy of Difficulty

In "frictionless" markets (like the US or UK), everything is easy. You can register a business in 10 minutes. Logistics are seamless. Data is perfect. Because it is easy, competition is infinite. Margins are razor-thin because anyone can enter the market.

In "high-friction" markets, everything is hard. Because it is hard, competition is scarce.

This creates the Friction Premium: The extra margin you get paid for solving problems that other people are too scared or too lazy to solve.

Why "Easy" is a Trap

If you are looking for an "easy" investment in Africa, you are looking for a crowded room. If a sector is legible, regulated, and digitized, the global giants (Amazon, Google, Maersk) are already there. You cannot beat them at efficiency.

But the messy sectors? The ones where you need to know the local chief, navigate the unwritten rules, and bridge the trust gap? The giants can't go there. Their compliance departments won't let them.

The Bridge Builder's Paycheck

This is the ultimate advantage of the Diaspora Operator. You have the Global Competence to deliver world-class service, and the Local Stamina to navigate the friction.

Don't wish for the market to be easier. If it were easier, you wouldn't be necessary. The Friction is the only reason the opportunity is still waiting for you.