Expanding to Western Africa: A Guide to Hiring, Business Expansion, and the Role of Employer of Record (EOR) Services

03.03.2025 Anna Blog, Compensation and Benefits, Global Expansion, Global PEO/EOR, HR Compliance, International payroll, International Recruitment

Western Africa is a region of immense potential for businesses looking to expand globally. With its rapidly growing economies, young and dynamic populations, and abundant natural resources, countries like Nigeria, Ghana, Senegal, Côte d’Ivoire, and Mali offer exciting opportunities. However, entering these markets requires a deep understanding of local business environments, labor laws, tax systems, and employment practices.

This is where Employer of Record (EOR) services come into play. By partnering with an EOR like WeHireGlobally, businesses can navigate the complexities of expanding into Western Africa, ensuring compliance, reducing costs, and focusing on their core operations.

In this comprehensive guide, we’ll explore the ease of doing business, employment practices, tax systems, and employee benefits in Western Africa, and explain why EOR services are the ideal solution for businesses entering this dynamic region.

Why Western Africa?

Western Africa is one of the fastest-growing regions in the world, offering access to diverse markets and a wealth of opportunities. Here’s why businesses are increasingly looking to expand into this region:

Key Economic Indicators

Nigeria: Africa’s largest economy, with a GDP of $440 billion, driven by oil, agriculture, and a burgeoning tech sector .
Ghana: A stable economy with a GDP of $72 billion, known for its gold, cocoa, and oil exports .
Senegal: A growing economy with a GDP of $27 billion, strong in agriculture, fishing, and tourism .
Côte d’Ivoire: A regional economic powerhouse with a GDP of $70 billion, driven by cocoa, coffee, and oil .
Mali: A developing economy with a GDP of $17 billion, focused on gold mining and agriculture .

The region is also improving its business environment, with reforms aimed at attracting foreign investment and fostering economic growth.

Ease of Doing Business in Western Africa

The ease of doing business varies across Western Africa, with some countries making significant strides in improving their business climates.

1. Nigeria

Ranking: 131st in the World Bank’s Ease of Doing Business Index .
Strengths: Large domestic market, growing tech sector, and abundant natural resources .
Challenges: Infrastructure gaps, bureaucracy, and corruption .

2. Ghana

Ranking: 118th in the World Bank’s Ease of Doing Business Index .
Strengths: Political stability, investor-friendly policies, and a strategic location .
Challenges: Limited access to finance for SMEs and energy shortages .

3. Senegal

Ranking: 123rd in the World Bank’s Ease of Doing Business Index .
Strengths: Stable democracy, improving infrastructure, and a growing services sector .
Challenges: Bureaucracy and limited industrial base .

4. Côte d’Ivoire

Ranking: 110th in the World Bank’s Ease of Doing Business Index .
Strengths: Rapid economic growth, strong agricultural sector, and improving infrastructure .
Challenges: Political instability and corruption .

5. Mali

Ranking: 148th in the World Bank’s Ease of Doing Business Index .
Strengths: Abundant natural resources and agricultural potential .
Challenges: Political instability, security risks, and weak institutions .

Employment Practices in Western Africa

Each country in Western Africa has unique labor laws and employment practices. Understanding these is crucial for successful expansion.

1. Nigeria

Labor Laws: Nigeria’s Labor Act mandates written contracts, a 40-hour workweek, and 12 days of annual leave. Employers must contribute 11% of an employee’s salary to social security .
Hiring in Nigeria Foreign Workers: Work permits are required, and the process involves labor market testing .
Benefits: Mandatory benefits include health insurance, maternity leave (12 weeks), and pension contributions .

2. Ghana

Labor Laws: Ghana requires written contracts, a 40-hour workweek, and 15 days of annual leave. Employers must contribute to social security and health insurance .
Hiring in Ghana Foreign Workers: Work permits are mandatory, and the process involves submitting proof of qualifications .
Benefits: Employees are entitled to paid sick leave, maternity leave (12 weeks), and pension benefits .

3. Senegal

Labor Laws: Senegal mandates written contracts, a 40-hour workweek, and 24 days of annual leave. Employers must contribute to social security and health insurance .
Hiring in Senegal Foreign Workers: Work permits are required, and the process involves labor market testing .
Benefits: Employees are entitled to maternity leave (14 weeks), paid sick leave, and pension benefits .

4. Côte d’Ivoire

Labor Laws: Côte d’Ivoire’s Labor Code requires written contracts, a 40-hour workweek, and 24 days of annual leave. Employers must contribute to social security and health insurance .
Hiring in Côte d’Ivoire Foreign Workers: Work permits are required, and the process involves submitting proof of qualifications .
Benefits: Employees are entitled to maternity leave (14 weeks), paid sick leave, and pension benefits .

5. Mali

Labor Laws: Mali’s labor laws mandate written contracts, a 40-hour workweek, and 30 days of annual leave. Employers must contribute to social security and health insurance .
Hiring in Mali Foreign Workers: Work permits are required, but the process is often disrupted by political instability .
Benefits: Employees are entitled to maternity leave (14 weeks), paid sick leave, and pension benefits .

Tax Systems in Western Africa

Understanding the tax systems in Western Africa is essential for compliance and financial planning.

1. Nigeria

Corporate Tax: 30% .
Income Tax: Progressive rates up to 24% .
VAT: 7.5% .

2. Ghana

Corporate Tax: 25% .
Income Tax: Progressive rates up to 35% .
VAT: 15% .

3. Senegal

Corporate Tax: 30% .
Income Tax: Progressive rates up to 40% .
VAT: 18% .

4. Côte d’Ivoire

Corporate Tax: 25% .
Income Tax: Progressive rates up to 60% .
VAT: 18% .

5. Mali

Corporate Tax: 30% .
Income Tax: Progressive rates up to 40% .
VAT: 18% .

Employee Benefits in Western Africa

Offering competitive benefits is key to attracting and retaining talent in Western Africa.

1. Nigeria

Health Insurance: Mandatory for all employees .
Maternity Leave: 12 weeks at full pay .
Pension: Employers contribute 10% of an employee’s salary .

2. Ghana

Health Insurance: Mandatory for all employees .
Maternity Leave: 12 weeks at full pay .
Pension: Employers contribute 13% of an employee’s salary .

3. Senegal

Health Insurance: Mandatory for all employees .
Maternity Leave: 14 weeks at full pay .
Pension: Employers contribute 7% of an employee’s salary .

4. Côte d’Ivoire

Health Insurance: Mandatory for all employees .
Maternity Leave: 14 weeks at full pay .
Pension: Employers contribute 8.4% of an employee’s salary .

5. Mali

Health Insurance: Mandatory for all employees .
Maternity Leave: 14 weeks at full pay .
Pension: Employers contribute 7.5% of an employee’s salary .

Why Employer of Record (EOR) Services Are Essential

Expanding into Western Africa presents several challenges, including complex labor laws, administrative burdens, and compliance risks. Here’s how EOR services can help:

1. Compliance Assurance

EORs ensure adherence to local labor laws, tax regulations, and social security requirements, reducing the risk of penalties and legal disputes .

2. Rapid Market Entry

EORs allow businesses to start operations within days, eliminating the need to establish a local entity .

3. Cost Savings

By outsourcing payroll, benefits, and compliance to an EOR, businesses can save on setup costs and administrative expenses .

4. Risk Mitigation

EORs handle employment-related risks, such as wrongful termination claims and non-compliance, protecting businesses from potential liabilities .

5. Access to Global Talent

EORs enable businesses to hire the best talent, regardless of location, without the burden of local entity setup .

Why Choose WeHireGlobally?

WeHireGlobally is a leading provider of EOR services, offering tailored solutions for businesses expanding into Western Africa. Here’s why we’re the best partner for your expansion:

1. Local Expertise

We have in-depth knowledge of labor laws, tax regulations, and cultural nuances in Nigeria, Ghana, Senegal, Côte d’Ivoire, and Mali .

2. Comprehensive Services

We handle everything from recruitment and onboarding to payroll, benefits, and compliance, ensuring a seamless experience for your business .

3. Cost-Effective Solutions

Our flexible pricing model allows you to scale up or down based on your needs, saving you time and money .

4. Risk Management

We mitigate employment-related risks, ensuring compliance and protecting your business from potential liabilities .

5. Global Reach

With operations in over 190 countries, we provide a unified platform for managing your global workforce .

Conclusion

Western Africa offers immense opportunities for businesses looking to expand globally, but it also comes with significant challenges. By partnering with an Employer of Record (EOR) like WeHireGlobally, businesses can navigate these challenges with ease, ensuring compliance, reducing costs, and focusing on their core operations.

With our local expertise, comprehensive services, and global reach, WeHireGlobally is the best partner for your expansion journey. Whether you’re entering Nigeria, Ghana, Senegal, Côte d’Ivoire, or Mali, we’re here to help you succeed.