As the developed world matures, and becomes
increasingly difficult to trade in as a result of limited opportunities for
corporate growth. Africa is among the few places where entrepreneurs and
businesses with ideas and an appetite for risk can bring value and find
long-term growth if they are persistent, creative and determined.
As a first step, free trade between and within the
African economic blocs would make a huge difference. With the 54-nation Continental Free Trade Area, Africa's own mega trade deal, even the smallest African economies could see a lift. manufacturers could see benefit form setting up production and assembly operations in multiple African countries. That could lead to development in electronics, machinery, chemicals, textile production and food processing.
Africa’s economic growth prospects are among the World’s
brightest. Six of the
world’s 12 fastest-growing countries are in Africa. Further, between 2018 and
2023, Africa’s growth prospects will be among the highest in the world, according
to the IMF. Sectors where foreign companies could have a comparative advantage,
such as banking, telecommunications and infrastructure, are among the drivers
of current economic growth in Africa— creating clear investment opportunities
for foreign businesses.
Africa’s youthful population contributes to an abundance of labour,
which is one of the region’s highest potentials for labor-intensive industrialization, and
lowers production costs, leading to benefits that far outweigh the cost of
doing business on the continent. Engaging more foreign companies may help raise wage rates in
Africa, improve labour market efficiency and generate additional resources for
those left behind on the age ladder.
Investing in
Africa is good business and a sustainable corporate strategy for foreign
investors. Advanced and emerging countries’ governments and the private sector
should leverage these profitable, emerging investment opportunities.
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