Africa is beautifully blessed with stunning beaches, unspoiled forests, safaris that will make you salivate and adventures you will never forget in your lifetime. There was a time most people didn’t take the continent serious because of its backwardness. Today, there are multi-million dollars companies that we may not be able to count. Are you thinking of investing in Africa? We have some of the ways you can invest your money and never regret.
In the sub-Saharan Africa regions, infrastructure such as rails, airports, power grid, roads and technology are required to promote the growth and development of African economies. Due to the lack of these structures, the growth of the imports, exports and regional business are limited.
Prosperity in companies can be achieved when these companies are able to connect with Africans and markets. One of the problems suffered in the Sub-Saharan Africa is power outages which has been estimated to be almost 700 hours on average slowing production rate. .
The rails and roads are loaded heavily, thinly scattered, and weakened. Due to agreements on lack of aviation or aircraft operations, intra-African air connections have been restricted.
Having the 54-nation Continental Free Trade Area –Africa’s own mega trade deal, the smallest African countries could notice a raise. Producers could see advantages from establishing production and assembly operations in various African countries if the taxes are lowered and incentives are welcomed. This could encourage development in machinery, chemicals, textiles, production and processed foods and electronics.
To begin, the first step is endorsing free trade between and within African economic blocs as this would make a huge difference. A meager 3% of Africa’s share in global trade can only rise from the production of a wide range of goods for both the international and domestic market in the continent’s commodity and consumption-led economies.
International Standard Supply Chains
The increase in Africa’s middle class has brought in the development of newer anticipations. In terms of expenditure and consumption, learned urban professionals are young, knowledgeable of brand and have experiences in tastes of fashion. Both the retailers and the consumer brands expect and desire buying preferences in home products, lifestyle products and fashion but in order to achieve this, international standard supply chains are necessary. Functioning to meet this present demand and competition with worldwide brands, to medium enterprises, the biggest economic forces in Africa are small.
In term of mobile adoption, Africa tops the chart all around the world and this continues to give the largest cross-sectoral economic opportunities. The global economy has been opened to the poor, unbanked city and rural dwellers through mobile payment networks developed in East Africa. In order to properly manage their supply chain, companies such as Novartis use mobile communications. Olam, another company has successfully reached out to new African suppliers and farmers with mobile. A huge success has been made through these mobile operations.
For example, in the year, 2014, a telephone hotline was arranged in Ethiopia which allowed small farmers gain quicker means to receive advice from agronomists. It was recorded that over 3 million calls were made in the first six months of the operation. Mobile is where Africa has succeeded beyond boundaries in the global world and African technologists are working towards innovation. Now what happens next?
Investment Promotion Agencies
Although still in early stages, African economies are now starting to extend beyond commodities. A returning Diaspora which values and welcomes the potential and the opportunities is being seen in Africa. The African population fully supports local economic growth combined with their skills and talents by posing as “first movers” which also invest back in their own communities.
In the same vein, bets on non-commodity areas in area of competitiveness have began in African countries and they are wrapping themselves in order to please a wider set of investors. In recognition, they no longer need to count on the growing investments from China, in every country, an agency which resolves and acts as a one-stop for investors, helps and in registration processes, duties and other procedures to establish local companies and these agencies are known as “Investment Promotion Agencies”