Why Did You Choose Africa?
Despite the fact that Africa is currently the world’s poorest continent, we anticipate long-term growth. The World Bank has already forecasted this, with researchers predicting that by 2025. The majority of local countries will have achieved middle-income status. Analysts at the International Monetary Fund predict a dynamic development. The overall region’s economic growth expected to reach 3.4 per cent in 2017. Between 2018 and 2022, average GDP growth will hover around 4% – Business Opportunities.
In comparison, the Middle East predicted to grow at a rate of 1.3 per cent this year. While Europe will grow at a rate of 1.9 per cent.
Africa is a continent with an abundance of natural resources, the size of which has never been fully assessed, and many of which remain untapped. Iron, copper, nickel, manganese, antimony, and chromium ores found here, as well as gold, silver, platinum, uranium, and diamond resources. Oil, natural gas, and hard coal are also abundant in Africa. Some countries have already benefited from this; for example, Nigeria is a major oil producer, South Africa has one of the world’s greatest gold and diamond resources, and Zambia is the world’s ninth-largest copper producer.
Tourism is one of the fastest-growing areas of the economy, and it is the primary source of revenue in many African countries. Namibia, Botswana, Mozambique, Tanzania, and Kenya, in addition to well-known destinations such as Egypt, Tunisia, Morocco, and South Africa, are increasingly focused on tourism.
Threats And Business Opportunities
The agri-food industry appears to be particularly intriguing from the perspective of entrepreneurs. The region’s rapid economic expansion would need agricultural modernization. Which will provide opportunities for enterprises exporting machinery and other agricultural equipment. Given the status of African agriculture, it is also worthwhile to consider food exports to local markets. Food production in Africa has not kept up with the rising demands of consumers, who are increasingly becoming part of the global middle class.
Another business opportunity is tourism. This is particularly true of firms that specialize in the construction of hotels, service facilities (such as restaurants and bars). And infrastructures, such as ports, airports, and highways. These also prospects for furniture business entrepreneurs since each of the above-mentioned structures appropriately outfitted. Furniture will pique the curiosity of retail customers, who will undoubtedly notice the excellent value for money. Textiles, electronics, pharmaceuticals, and cosmetics are some of the other businesses that the African market would be interested in.
How Do You Pick A Country?
Many elements and variables considered while selecting a country from which to launch our business in Africa. The size of a country’s economy, as measured by the value of its gross domestic product and the number of its population. It is the most basic feature to evaluate. We can estimate the number of potential clients and the size of their wallets using these two statistics (GDP per capita). Of course, this is merely the most basic categorization; there are many more elements that are strictly economic.
The structure of the economy, the level of inflation, unemployment, and the quantity of public and foreign debt are only a few examples.
It’s also worth ensuring that the so-called political risk is properly assessed, which involves, among other things, the legal system and its rulers’ respect for it, the quality of administration, the level of social satisfaction or payment experience, and investor “sentiment.” International organization rankings and studies may be useful in assessing the country’s political situation.
