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hire in Africa

Africa EOR

SALARY PAYMENT IN Various currencies

CONTRACT LANGUAGE English, French, Portuguese, Swahili, Arabic, Portuguese, Hausa and other languages depending on the country

PAYROLL TAX 4.5-19%

PAYROLL CYCLE Generally monthly

TIME TO HIRE 24 hours

Hire in Africa, without an entity

With Horizons, international companies can easily hire staff in Africa while ensuring full compliance with local labor and tax regulations. The Africa EOR solution offered by Horizons allows for the hiring of a team or teams from anywhere in Africa, without the need to establish a local subsidiary or entity.

By opting for an Africa EOR solution, businesses can save both time and money while ensuring compliance with local laws.

Our Africa EOR makes it easy to hire in Africa

With the Horizons EOR solution, global enterprises can easily hire employees in Africa, without the significant cost of establishing a local subsidiary.

Fast Hiring

Horizons enables your company to hire and onboard your team anywhere in Africa, in as little as 24 hours.

Legal & HR Team in Africa

Experts in Africa labor and tax laws ensure you are fully compliant with applicable laws in all African jurisdictions.

Payroll

Horizons ensures salaries or wages are paid in accordance with your preferred pay period. The Horizons EOR platform simplifies income tax withholding and expense administration to make payroll seamless. 

Onboarding

Guarantee that all employees throughout Africa are welcomed onboard with a compliant contract and all necessary formalities.

Stay Compliant

Horizons ensures that employment remains compliant and deals with any legal and compliance issues as they arise.

Cost Savings

With an Africa EOR solution, you save up to 85 percent of the total cost of hiring throughout Africa.

Hire and pay talents
with Horizons in
180+ countries

What is an Africa EOR?

An Africa EOR provides an efficient and cost-effective solution for businesses seeking to expand into African markets without establishing a legal entity, while ensuring compliance with local employment regulations.

An Africa EOR is defined as the formal, legal, employer of staff based in Africa. Through an Africa EOR solution, the  EOR company becomes responsible for employment tax and labor law compliance, while employees remain under the day-to-day supervision of the international client company.

This means that the EOR manages all aspects of recruitment, contract drafting, onboarding, payroll, benefits administration, tax withholding, and compliance.

As the EOR becomes the legal employer of staff in Africa, it is also referred to as an Africa Employer of Record solution.

An Africa EOR is a regional EOR that caters to multiple countries, rather than a national EOR that operates within a single country. Additionally, it is common for an Africa EOR to be a Global EOR, which operates across the globe.

Which regions does an Africa EOR cover?

An Africa EOR can hire employees for you in any region of Africa. When deciding where you need to engage in Africa, it is worth considering some of the differences, economically, between the different regions of Africa:

  • Southern Africa
    Southern Africa wields considerable economic power, driven primarily by industries such as natural resources (South Africa, for example, is the largest global producer of platinum, manganese, and chromium), agriculture, and tourism. Additionally, the region boasts robust financial services and business process outsourcing (BPO) sectors. For instance, several multinational companies such as Lufthansa and Amazon have established significant call-centre operations in Cape Town. Apart from Cape Town, the other prominent urban centers in the region are Johannesburg, Pretoria, Durban, and to a lesser extent, Windhoek (Namibia).
  • East Africa 
    The economic growth of this region of Africa is unparalleled, with reports indicating that three of the world’s ten fastest-growing economies (Tanzania, Rwanda, and Ethiopia) are in East Africa. Additionally, there has been a significant increase in foreign investment in the area, mainly from China.
  • The region’s economy is diverse and encompasses significant agriculture and horticulture industries (especially in Kenya), as well as sizable manufacturing, energy, and tourism sectors. Kenya, the largest country in the region, has developed an economic strategy aimed at becoming a hub for outsourcing.
  • The urban core of the East Africa region is centered around Nairobi (Kenya) and extends to Dar es Salaam (Tanzania) and Kampala (Uganda).
  • West Africa 
    Home of the biggest economy in Africa (Nigeria), West Africa is dominated by the energy industry (oil and natural gas), with significant related service and financial sectors.
  • Aside from Lagos (Nigeria), other centres of economic activity are Accra (Ghana) and Abidjan (Ivory Coast).

Other more isolated areas of strong economic activity within the African continent include Cairo (Egypt), Casablanca (Morocco) and Luanda (Angola).

What are the benefits of an Africa EOR?

There are several potential benefits in engaging an Africa EOR:

The advantages of engaging an Africa EOR include:

  • Cost savings —With an Africa EOR, there is no need to establish a local entity or subsidiary to employ local workers, meaning significant cost savings.
  • Improved compliance — Seeking advice from Africa legal and employment experts can help businesses avoid fines and penalties for noncompliance.
  • Local expertise — HR professionals with regional market knowledge and compliance expertise can offer support and guidance to international companies operating in the area.
  • Enhanced employee benefits — EORs typically manage a large workforce, giving them leverage to negotiate better deals on insurance and benefit plans for employees.
  • Faster hiring — Local employees can be hired within 24 hours through an Africa EOR, while employing via a local subsidiary could take months.

However, it is important to note that the benefits of an Africa EOR will vary based on the specific services they offer and the requirements of each business.

How does an Africa EOR help businesses hire employees?

Africa EORs offer various forms of assistance to businesses, such as:

  • Providing guidance on local labor laws and tax regulations —This is particularly valuable for international companies that are hiring employees in Africa for the first time.
  • Ensuring compliance with labor contract — Africa EORs create labor contracts for African employees that conform to local employment regulations.
  • Administering employee benefits — EORs in Africa design and execute employee benefit plans, such as health insurance and retirement schemes. They then oversee these benefit plans on behalf of the employees.
  • Handling payroll and tax withholding — Africa EORs are responsible for calculating and issuing employee salaries and wages, as well as withholding taxes and mandatory contributions. They also ensure that all necessary payments are made on behalf of the company.

How does an Africa EOR work?

The process followed by an Africa EOR may vary slightly, but typically encompasses the following steps:

  1. Strategic Consultation — the Africa EOR and the client company engage in a strategic discussion on the optimal approach for expanding into or hiring in Africa. Depending on the circumstances, the Africa EOR company may recommend an EOR solution, or advise on local company incorporation.

  2. Engagement Agreement — The Africa EOR and the client company enter into a detailed agreement outlining the precise scope of services to be provided. While a comprehensive Africa Employer of Record solution is often the norm, in some cases, a narrower recruitment or payroll solution may be more appropriate.

  3. Talent Acquisition — the Africa EOR identifies suitable talent for the client organization in the specific African location where it seeks to expand. The client company is consulted throughout the process and retains the final say on hiring decisions.

  4. Onboarding — all newly hired staff receive locally compliant employment contracts, and their payroll and tax information is obtained to ensure they are fully prepared to start working and receive payment.

  5. Payroll Processing — the Africa EOR processes employee payroll on a regular basis, as specified in the employment contract.

  6. Ongoing HR and Employment Compliance — The Africa EOR addresses any employment-related issues, including disputes, as they arise.

  7. Contract Renewal/Termination — The Africa EOR oversees contract renewals for employees as and when required and manages the process of termination or dismissal if requested by the client organization.

Hire through an Africa EOR

Africa Employer of Record (EOR) solutions make it easy to hire employees in Africa, quickly, and in full compliance with local laws and regulations. For more information get in contact with us for a no-obligation consultation with an Africa hiring expert. 

FAQs

No. The precise services offered by an Africa EOR will depend on the country of hire. For example, in the case of South Africa, there are stringent regulations applying to EORs that provide employees on a temporary basis. According to Section 198A of the Labour Relations Act 1995, unless certain exemptions and provisions apply (such as earning below a specified threshold), an individual who is supplied by a “temporary employment service” for a duration exceeding three months is considered a permanent employee of the client company.

There are some hiring practices in Africa which can be distinct from those in other regions, owing to differences in employment law, traditions, and employee preferences.

For instance, performance-related incentives are prevalent among African employees, as are generous fringe benefits, including access to company-owned vehicles and cash allowances. Consequently, in Africa, there can be a notable gap between an employee’s salary or wages and their overall compensation package.

An Africa Employer of Record solution means an EOR company becomes the legal employer of employees in an African location. An Africa PEO solution often refers to a broader arrangement which may involve an EOR solution, but may involve other payroll and HR services (e.g., visa support and recruitment).