Leaders entering or expanding in Africa now expect a different standard from their partners: one accountable provider with multi- country coverage and genuine local expertise; real-time regulatory monitoring across payroll, labour, data, and trade; demonstrable governance frameworks; technology that standardises processes while meeting privacy obligations; and the ability to expand into new markets rapidly and compliantly. Things to Watch in 2026 In 2026, a few things will be worth closer observation. The completion of Rules of
many businesses look to outsourcing models that simplify the process. The Employer of Record model appoints a third party as the legal employer to manage payroll, contracts, benefits, and filings while the company leads daily work. The Professional Employer Organisation model retains the company as the legal employer while the PEO manages HR administration and compliance under a co- employment structure. Both approaches allow compliant hiring and scalable controls while enabling flexibility as AfCFTA tools mature. Make Compliance an Advantage Handled well, compliance can become a performance advantage rather than an administrative burden. Country-fit contracts and local onboarding speed access to talent, audit- ready data flows build confidence with regulators and partners, and using regional payment systems
such as the Pan-African Payment and Settlement System can reduce friction on eligible cross-border transactions. Transparent, compliant operations strengthen trust, which in turn supports retention, quicker project starts, and better commercial outcomes. Even experienced teams encounter recurring pitfalls. Some assume AfCFTA harmonises labour or visa rules when it does not; others treat tariffs and origin rules as static, underestimate cross-border data-transfer restrictions, or cling to manual certificates of origin despite growing digital adoption. A proactive approach to monitoring and updating processes prevents costly corrections later.
A proactive approach to monitoring and updating processes prevents costly corrections later.
04:05 I 55
ISSUE 17 GLOBAL PAYROLL MAGAZINE
Made with FlippingBook - Share PDF online