Choosing the right market entry approach is one of the most critical decisions European exporters make when expanding into Africa. Two of the most common models are working with a distributor or appointing a commercial agent. Both approaches can be successful — but only if they are aligned with your product type, market maturity, and growth objectives.

This guide explains the difference between distributors and agents, and how to choose the structure that best supports scalable and profitable growth in African markets.

Understanding the Two Models

Distributor	Agent
Purchases your product and resells it locally	Does not purchase stock; introduces buyers and earns commissions
Handles importation, logistics, warehousing, and distribution	Provides market access, meetings, and introductions
Controls pricing and sales strategy (within agreed framework)	You maintain pricing and invoicing control
Bears commercial and inventory risk	You bear commercial and inventory risk
Typically stronger long-term market presence	Best for early-stage exploration or niche markets

When a Distributor Works Best

A distributor model is ideal when:

• Your products require availability and fast delivery (FMCG, tools, spare parts, consumables)
• After-sales service and technical support are important
• Customers demand local stock and warranty commitments
• You want to scale quickly and leverage existing sales networks

Benefits:

• Faster route to market
• Lower operational and financial risk for the exporter
• Stronger local accountability for sales performance

Challenges:

• Requires careful vetting to ensure the distributor has real capability
• Risk of market blockage if exclusivity is granted too early

When an Agent Works Best

An agent model fits when:

• You are new to the market and want to test demand
• Your product is high-value, high-margin, or customized
• Buyers (e.g., government, enterprises, manufacturers) purchase via tenders or relationship-based sourcing
• You need introductions to decision-makers rather than mass distribution

Benefits:

• Low risk and low cost to enter the market
• Full control over pricing and negotiation
• Flexibility to change partners if needed

Challenges:

• You must handle logistics, delivery, invoicing, and sometimes after-sales service from abroad
• Agents are only motivated once commissions are paid — motivation varies

Hybrid Approach: The Most Common Success Strategy

In many African markets, the most effective structure is a hybrid model:

• Agent handles market development, introductions, and tender positioning
• Distributor manages stocking, fulfilment, sales teams, and after-sales support

This approach combines:

• Market intelligence
• Local credibility
• Operational capability
• Commercial accountability

It is especially effective for:

• Industrial equipment
• Healthcare products
• ICT systems
• Building materials
• Machinery

Key Factors to Consider Before Choosing

When deciding between agent or distributor, evaluate:

Question	Best Fit if Answer is “Yes”
Does the product need to be stocked locally?	Distributor
Do customers expect technical support or maintenance?	Distributor
Is the market still being explored or developed?	Agent
Do you need introductions at government or enterprise level?	Agent
Do you want fast geographic expansion?	Distributor or hybrid
Is pricing control very important to your brand?	Agent or hybrid

Conclusion

There is no one-size-fits-all approach to entering African markets.
The right model depends on your:

• Product category
• Market maturity
• Investment capacity
• Long-term expansion goals

However, most long-term success stories include strong local partners, clear agreements, and structured performance monitoring.

Need Help Choosing or Setting Up the Right Partner Model?

SCA-Partner helps European companies:

• Evaluate the best market entry model for their sector
• Identify, vet, and negotiate with distributors or agents
• Set performance metrics and partnership governance frameworks

We ensure your expansion into Africa is strategic, de-risked, and built for sustainable growth.