Over the past two decades, Sub-Saharan Africa has caught the attention of an increasing number of investors who are looking for new and promising opportunities. While growth has slowed in some of the region’s oil exporting countries, the “Africa Rising” narrative continues due to the region’s youthful population of 1 billion people (70 percent are under 30), rapid urbanization, and ongoing improvements in democratic governance, economic management, and peace and security. Sub-Saharan Africa remains ripe with potential and opportunity but there are important factors to consider when seeking to do business in the region.

Market Boundaries Don’t Necessarily Map Onto Country Borders

When looking to define the market, it is important to remember that not only is Africa a large and heterogeneous continent but that market boundaries do not necessarily map onto country boundaries. Moreover, there are approximately 50 cities in Africa with one million or more people. As a consequence, one can define the market in terms of regional blocs, or countries (especially if the country is particularly populous, like Ethiopia or Nigeria), urban corridors, or sub-markets within or across countries. In certain cases, trading communities that exist on both sides of a border, or along a particular trading route, are economically similar and might be considered when defining the geography of the market. Similarly, it can make sense to look at an entire sub-region as one market; for example, the East African Community is trying to encourage precisely this outlook as it works to harmonize tariffs and standards across its five members.

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CASABLANCA, Morocco—A​ stable​ country in ​a wobbly region​, Morocco has long attracted foreigners thanks to its growing and stable economy.

As a native Moroccan, I have seen numerous foreigners, namely French, Spanish and Americans, settling in the North African country to learn Arabic or get a first experience in the Arab world.

That’s a great idea, although expats moving to the North African kingdom should bear in mind a few tips.

1. It is not cheap.

Morocco is more expensive than you think. Many foreigners think of the Morocco of the souks, the traditional markets, where things are cheap. But the rent in big cities, such as the economic capital Casablanca, is higher than in Boston, according to Mercer’s 2014 Cost of Living Survey.

Real estate prices in cities like Marrakesh can be as high as in Western Europe. Morocco is an emerging market that expanded by 4.5% in the fourth quarter of 2015.

However, there is a significant difference in real estate prices between big cities, like Rabat and Agadir, and the towns. Jean Pierre Cogitore, a Frenchman who retired in Morocco, pays 4,000 dirhams (about $370) a month for a two-person house at the outskirts of Essaouira city.

While vegetables, fruits, meat and fish, especially in traditional markets, are cheaper than in the U.S. or Western Europe, wines and spirits are more expensive in this Muslim nation. A good bottle of wine—which might cost $20 in the U.S.—costs up to $30. You can only find them in large supermarkets.

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