The fact is Africa has some of the poorest countries in the world. But the truth is Africa is one of the richest continents in the world. Most of the countries in Africa have GNI higher than China. The concentration of wealth here is a potential market for countries in Africa. And recent entrepreneurial activities have proven that this can be achieved.
Meeting the objectives
Critics have so many arguments that disprove the credibility of the prosperity of Africa. Some say it is a continent wrecked by brutality, cultural and religious tensions, environmental disasters and poor infrastructures. Others argue that she is ravaged by ‘sick states’ that are threatening the stability of the continent. Some also say she is made up of small countries which make it difficult to reach critical mass.
Africa is bigger than you think
Most African countries have greater population than the most if the world’s developed countries. And since most of the countries share a common culture, language and trade, they can be bundled together into a larger market. Most foreign investors seek to expand their business into surrounding countries and Europe to grow. Most people say that Africa is landlocked. But the fact is most of the countries have inadequate infrastructure and connections to keep contacts with foreign land. But thankfully the invention of airlines and cell phones has helped the issue. Through this means of communications, strategies can be built internationally and interoperability is made easier and simple. Businesses have expanded across the continent due to such innovations.
Africa is more than just south and north
Survey has shown that most of Africa’s richest countries are located in the northern and southern part of Africa. But research has shown that African industries stretch across the continent. If a country does well it means its neighbors are also doing well. This implies that if the southern and northern countries are doing well, then the rest of the continent is also doing well.
Sick states
Opportunities in Africa are uneven. But it is same for most of the developed countries. Africa has troubled countries and developed countries. Every economy has troubles spots. But the growth of the economy is not judged by the outliers.
Real challenges
One of the real challenges facing Africa is the case of corruption. It is difficult to do business in some African countries due to this. The officials who deal with the registration want a piece of the business. The situation has improved recently.
Another reason is the companies being required to meet the regulations for employment or partnership with local enterprises. Although it is meant to help create wealth and encourage local entrepreneurship, it creates more difficulty in businesses. Africa is a tough market but for those who persevere, the opportunities are limitless. African governments are now opening up to the entrepreneurial world, making policies that facilitate the growth of the enterprises.
The magnifiers
Africa has a great number of opportunities than estimated. Recent research has shown African countries are growing faster and steadier that in past years. Economic activities on the continent all point to the increasing potential of indigenes.
Growth rate
The growth rate of Africa is ever growing and showing a promising site for great businesses. With the current birthrate in Africa, Africa will grow younger every day. This will create a blossoming area for business. And it will also lead to Africa producing the larger consumer number.
Direct Equity
The rate at which private equity is flowing into the continent is record breaking. This is a positive note for the future. According to the Emerging Private Equity Association revealed huge amount of funding pouring into countries like Tanzania, Burundi and Uganda. The returns of equity to African countries are great. Nations like Nigeria are benefitting a great deal from this. Investments into midsize firms are proving profitable for companies. Examples of such companies are the Africa Development Bank Group. Companies like the K-Rep bank also benefit from this.
Informal Equity
Informal equity is underestimated in Africa. But it has been proven to be one of the great pillars or economy growth. It can also be said to have the highest of employment in Africa.
The Ricochet Economy: The African Opportunity Is Bigger Than the continent
Africa is not alone in her development. It is also connected to a broad Diaspora that is contributing immensely to her development and her future. The number of African members in the Diaspora is very large. And this depicts the rise of African power. The rise creates channels for investment in Africa. Educated Africans are encouraged to come home and work to add more value to African economy. The Ricochet economy is one of the driving forces of developing countries. It is a bridge for countries in turmoil and drives their markets. The Diaspora also creates a global market for African products.
Accelerants for Growth in Africa: Cell Phones and Banking
Cell phones usage has increased in recent years. They have given a means of easy communication. Networks have also provided the platforms for products to be advertised and sold, transaction of businesses etc. Due to the high demand on cell phones, network operators have had business booming in different countries. Examples of such network operators are MTN, Zain and Vodacom. Banks are forming networks across the continent and the business is increasing greatly. Some banks are targeting rural folks. In short banks are creating a link to the unbanked. It is now easy to transact banking businesses. Enhanced services and products are other lucrative means of drawing the populace. The banking system has merged with the network operators and this has made transaction easy and comfortable.
Does Africa Exist?
Even though markets across Africa have so many common attributes, their differences also cannot be overlooked. The differences are much in terms of politics, economics and social conditions. Opportunity in Africa is mostly locally realized. Local industries are able to keep up with competition from foreign investors because of this fact. Sometimes having to choose between local products and foreign products is quite complex. Some people might prefer the locally manufactured products when it comes to certain commodities but will go for foreign produces when it comes to other commodities.
Diversity and Tolerance
Going across Africa, it can be observed that Africa displays great diversity in the religious and cultural setting. From Christianity to Islam to Hindu. Diversity in religious beliefs. The religious celebrations also have great impact on businesses. Sales go up during these seasons. Banks also target religious sects who are unbanked. Influence of the west on African culture also grows rapidly. Western artistes are held in high repute by the youth and their deeds are influenced by these stars.
Headscarves and shampoo
Religion has a direct impact on sale of shampoos and headscarves. Shampoo sales are low in Muslim community mainly because the majority of the women wear scarves. This leaves the industries chasing after a limited number of customers. But head scarves have it downside also. They do not allow air into the hair so it leads to loss of hair and rashes. Looking at this companies have produced shampoos which allows the hair to breath.
Beyond the numbers
Africa has been portrayed as a place of danger. That idea is not farfetched. There are several dangers in Africa. But if one is to weigh the options, it will be realized that the opportunities far outweighs the dangers. Africa’s economy is fast growing and opportunity are everywhere but the numbers tell only part of the story. To reach the African economy, the sale of the right product at the right price is important. Due to cell technology, businesses have been taken to even the most remote part of the continent. Africa’s economy is rising and she still remains a land of great potential.
