Stories written
about Africa and doing business in Africa are full of misconception without
proper understanding of the prevailing business environment. It is however
funny when many Africa countries are classified as third world nations while
the continent itself is classified as emerging market what a contradiction.....
The Africa that I
know has abundance of opportunities and untapped potentials with very few
foreign companies taking advantage of these potentials. Over 70% of the
continents population are under 40 years of age with vibrancy, energy, talents
and drive to excel which is what every firm will love to have in its workforce.
This is the continent that has 7 out of
the 10 fastest growing economy in the
world. Governments in Africa are working really hard to make the continent the
destination for investors despite negative reports about the continent.
Investing in Africa
will not only cushion the effects of the Euro crisis on companies balance sheet
but it is also massive consumer market.
Why
Africa:
a) It is the only
continent that is rich in natural resources with countries like Nigeria,
Angola, Libya and recently Ghana in oil, Platinum and diamond in South Africa,
cocoa in Ivory coast and many more.
b) IMF has
predicted that the continent will grow more significantly in the coming years.
With many African countries working to enhance the business environment and
making it easier to do business.
c) Africa is the
fastest growing telephony market with over 600 million subscribers still
growing and over 50% of the population not connected and waiting.
d) Africa is the
only continent apart from some part of Asia that grew during the global
economic recession in 2009 and even get better in 2012.
e) When the
spending power of Europeans and Americans are falling, the spending power of
Africans is increasing with increase in the middle class of over 250 million
people.
The
Testament:
Lots of
multinational firms took advantage of this abundant opportunities and have
never looked back since then or regretted taking that investment decision.
Guinness Nigeria a subsidiary of Diageo Plc UK
is the second largest market in the world is expected to outperform United
Kingdom market by 2014 according to
research carried out by Renaissance Capital in 2011. In addition more than 45%
of the company's global sales is from Sub -Saharan Africa. In recent
announcement from Diageo Plc, Nigeria is the biggest market for Guinness
foreign extra stout in the world overtaking the home country Ireland with the
country having 6% of its global income.
PZ Cussons
manufacturer of healthcare products and consumer goods started its African subsidiary
in 19th century and now Africa is its largest market. The consumer spending in Europe
is falling while the consumer spending is ever increasing with lots of places
in Africa yet to be invested into by the firm.
Investors
Guide:
Doing business in
Nigeria: Nigerian Investment Promotion Commission
Doing Business in
Ghana: Ghana Investment Promotion Centre
Doing Business in
Kenya: Kenya Investment Authority
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