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Cape Town - As economic growth on the African continent accelerates, the number of South African businesses expanding their operations into the rest of the region grows steadily.
However, as the continent is relatively new to international business relations, the potential risks associated with travelling to certain countries needs to be considered by businesses, according to Annelie Smith, corporate executive at Risk Benefit Solutions (RBS).
This is to ensure that both their businesses and staff have the necessary risk management measures in place before embarking on such business trips.
Moving into certain African regions may increase both the business’s and the employees’ risk profile.
“From an employee travel point of view, it is becoming increasingly important that businesses are looking after the needs and safety of their employees when sending them into potentially dangerous areas,” said Smith.
She points to figures published in the April 2014 Global Kidnap for Ransom Update, issued by crisis prevention and response consultancy NYA International, which reported that Nigeria accounted for 23% of global kidnap and ransom incidents in the first half of 2013.
Smith, therefore, advises that potential incidents, such as kidnap and ransom, should be seriously considered and be a key area of concern for businesses travelling in regions marked as high risk within Africa and the rest of the world.
“Having a Kidnap and Ransom (K&R) policy in place enables a business to mitigate the potential losses associated with these threats," she said.
"In addition, should a kidnapping or extortion incident occur, a business that has taken the necessary precautionary measures in advance, may be better positioned to control and contain the incident, thereby further enabling the safe return of their employee.”
Smith adds that, in light of the increase in kidnap and ransom incidents occurring, policies have also had to evolve and include various extensions to ensure security, such as travel tracking.
“Extensions such as travel tracking provide companies with specific cover and allow businesses to physically track their employees during their trip, which is necessary when they are travelling in developmental areas such as Angola, the Democratic Republic of the Congo, Uganda and other similar regions globally,” she said.
Other aspects for businesses to consider include medical and accident cover.
“Similar to leisure travel, corporate travellers also require medical cover. When travelling on business there is an expectation from staff that your company will provide certain levels of cover should you be injured," she said.
“Businesses also need to be aware of possible legislative rules that could affect such policies and medical aids in certain countries, especially if their personnel are relocated to countries on an ex-pat basis.”
- Fin24
