Africa has been plagued with a history of political unrest, crime, corruption, civil wars, disease outbreak, famine, among many other worrying issues. But lately, the focus on Africa is more on the positive side. There suddenly seem to be a new awakening about the continent’s untapped resources and the incredible potential in the area of wealth creation.
Economic experts are confident that the continent is going to be the next big thing. With a teeming population of young people and even faster urbanisation, there are many reasons for this new wave that has influenced a number of top dogs to go see for themselves.
Hospitality businesses, financial institutions, IT firms and several manufacturing companies are benefitting from the party and catching up on the African wave.
If no reason was ever given, the trend may just be enough reason. Mark Zuckerberg visited Africa in 2016 to expand his business stronghold, which included financing a number of indigenous businesses that promise great returns. Also, of great importance is the percentage dedicated by China in its foreign direct investment in Africa.
Of even greater interest is the fact that out of 15 growing economies, nine of them are African countries.
While the news may not always be positive from that part of the world, below are five reasons why you should consider investing in Africa:
A friendlier climate: Gone were the days of apartheid and unstable political situations that made the region very unstable. Social media and better education has changed the face of the polity, cancelling out the old fear of political instability in the region
Affordable human resources: while the western world is trying to find solutions to its aging population, Africa is teeming with a large number of able bodied young generations that can get work done for way lower than their counterparts in the West. It is the same charm that doing business in China offers- in the area of affordable and capable human resources.
Access to raw materials: everyone knows that accessibility to raw materials go a long way in easing production stress. If you are looking to invest in the area of agriculture, then Africa beckons. With its expansive fertile farmlands and mineral resources, you are set to do better than hitting a goldmine. The ROI will be impressive having cut a great amount of cost by moving closer to raw materials.
A fast growing middleclass: Africa presents a greater market than you might have imagined. Swift wave of urbanisation that has and is still sweeping across Africa has birthed a new class of Africans with a higher taste and spending power. Malls are being built with franchises from different parts of the world being brought in to satisfy the growing demand of a new Africa. There is no better time than now to key into the opportunities that the continent presents.
Africa needs upgraded infrastructure, thus making that area very green with benefits. The exposure to what entails in the western world has caused an increase in the demand for good infrastructures such as railroads, hospitals, airports, and even good housing. All these areas can be exploited towards profit maximisation. As mentioned earlier, these areas are some of the areas where China is partnering with several countries in the continent.
Bear in mind that doing business here may not follow the ease with which business is done in the West- according to the statistics on Doing Business. But you will find out as you get used to the system that it is a green ground that is sure to bring forth lush harvests. Your presence in Africa shouldn’t be for humanity purpose alone, doing business in the continent can generate more wealth for you.