Archive for April, 2010

Promising African Countries To Invest In

Aside from South Africa and Nigeria, there are also other countries where a business strategic planning can dictate the campaign of an investment. Countries where risks are stepped on by an organized business environment and of course, flooding opportunities. The two aforementioned nations were the most-sought after economies by many foreign investors. But by looking further, opportunities are not just in South Africa and Nigeria. It is raining business hopes all over the region. From 53 countries, more than half of it were great places to develop any ventures.

Star Africa, a London-based business consultancy group handled by the African Rainbow Consulting, conducted a survey wherein the results came out were praises on many African nations. According to them, the top five potential African investor destinations, from top 1 to to top five are: Nigeria, Ethiopia, South Africa, Mauritius and Tanzania. Also from the report, few more years, Africa is gonna be able to surpass the Middle East to become the second fastest growing region, after overtaking Asia.

From 53 African countries, the survey was conducted basing on the criteria of good governance and social capital of many nations as well as the sector of electricity, internet, telecommunications and water supply and irrigation.

Among the top five, Ethiopia, Mauritius and Tanzania are a little unfamiliar to investors. They were not that noticeable for many until progress on different sectors occur on them.

Prior to the released survey result, investing in Ethiopia is advisable because of the following:

  • stabilized political climate
  • Liberalized free market economy
  • fair macro economic policies and stable foreign exchange regime
  • potential market with 57 million people
  • direct access to other 23 African countries
  • Huge domestic raw material base
  • Abundant and inexpensive labor force
  • Strategic location with proximity to the lucrative markets of the Middle East, Europe and Asia
  • Participation in the privatization opportunities

It is also likeable to invest in Mauritius because of the following advantages:

  • Democracy and a stable Government
  • A very good infrastructure with superb communications
  • An excellent network of sea and air transport
  • A free market economy anchored on export oriented activities
  • A highly literate, bilingual and friendly labour force.
  • High standard of living, good international schools
  • Favourable market access and very good incentives
  • An experienced financial sector providing excellent services

Tanzania is also a haven for investors because:

  • there is political stability
  • macroeconomic framework
  • An experienced financial sector providing excellent services
  • Protection against nationalization
  • transfer of capital or profits
  • settlement of dispute
  • access to credit from domestic resources
  • and reliable investment support institutions.

This is report by the Star of Africa is a support to those who want to help Africa without providing aid. Because there are a lot of them that has the intention, there are only few reliable information available to urge them.


Africa’s Internal Businesses Market

Internal African business market is still on the edge against exports. The market is still on the process of business modeling. It is yet to define what steps should be taken in order for them to boost the national economy. It may be raining international trades and investments, with most African countries focusing on it, but in domestic investment’s case, they are lacking. Although foreign business are very important, we can’t disregard the role of interior business, especially those that can enhance and preserve the richness of Africa’s environment.

The domestic business and products in Africa have big potentials. The region got a large population and abundant resources. Investing on this sector isn’t that bad because of a very promising market. In these times when most investors are risking it all out in the global competition, it is perfect to become different. Why not focus on the internal businesses. It may not offer you a profit that is as big as those from large businesses, but your venture will be a sure hit. Africans need something that is instants, like what every people does. Small businesses can provide these people with their basic commodities in real time. The community will have an easy access to fulfill their daily needs. If this idea come to life, everything else will follow. There will have development on domestic business, eradication of deadly diseases and a a highly governed nation.

A small business is more consistent as compared to a large business. A good example of small type of business is retailing. Retailing business in Africa has a goof future because of the ever-growing demand by the people. Like in Africa, from time to time, people are introduced to different type of products like foods, medicines, clothing and a lot more. This means, there is a fair number of them that is going to avail your product. And the number will continue to grow because of more companies providing decent source of income for Africans. Greater demand asks for greater supply, and this cycle is favorable for every small business.

Also, a small business can easily catch what are the needs of people. Since both consumer and investor have reliable connections, they can easily determine what’s the problem and how it should be addressed. If ever there is an arrival of big change, a small business can easily cope up. It is more flexible and more observant of what’s going in the business environment.

No one should be afraid of investing in Africa’s internal business market. Since Africa is seeking for better living, they will surely grab every innovations that are offered to them. Investors doesn’t need a big amount of investment money, all that they needs is trust and confidence, along with great business skills.

The Essence of Business and Marketing Research

Doing business is not all about dealing with what it is about to come. You need to somehow crawl to its roots to get a long and strong grip to success. It can’t be done by just merely working with what is there, better yet, we should also work with what used to be there. What we are talking about here is the essence of business and marketing research. By doing this, you’ll get access to the most significant information that you won’t find in any random business management articles. Sometimes, these information are too concealed, but you really need to get them for your business. To do that, you have to make an intense research.

Business and marketing research is as important as your business strategy consulting. One cannot work without the other. Business research is done before and during the life of the business. It is a systematic study that includes the market, resources, strategy and other data involving the products and services. There is consumer marketing research and business to business marketing research. When it comes to methodological approach, there is qualitative marketing research and quantitative marketing research.

By having a reliable marketing research, the management will be provided with relevant, accurate, valid and timely details that can help the business in a lot of ways. If ever there is a threat occurred, it will instantly be addressed by turning to the data gathered during the research. You can’t make decisions out of adrenaline rush. Every step to be taken should be supported with relevant information. You’re not doing trial and error when doing a business, it should always trial and glory.

The role of marketing research is described as “decide”. D is for defining the marketing problem. E is for enumeration of the controllable and uncontrollable decision factors. C is to collect relevant information. I is to identify the best alternative. The second D is develop and implement a marketing plan and E is to evaluate the decision itself and the decision process.

But of course, you can get all of this done if your marketing research is poor and dull. Your team should come up first with a systematic and objective research. Each procedures to be followed should be methodologically sound, well documented, and, as much as possible, planned in advance. Marketing research uses the scientific method in that data are collected and analyzed to test prior notions or hypotheses. Another thing, your business research should be devoid of personal or political biases. It may come from one of the researcher or the whole management. This is to prevent your efforts in doing the research to get ignored. You are eying success, since you already have the right weapons, make sure that there is nothing that will block your way to the top.

South East Asia’s Eye on African Investments

Asia was one of those regions that profited from the opportunities of investing in Africa. It’s countries took early leads of doing business from the emerging continent. The most notable Asian country was China. The Sleeping Giant is currently enjoying its affair with Africa. They are gaining while creating rooms for growth among Africans by creating jobs. They’ve got investments in several sectors, the largest is on infrastructure. Middle East countries and those from other corners of the world’s largest continent are also spiraling their way to the Black continent. They became aware of what African needs and what they will get from it. By now, Asian countries were the most informed of the investment opportunities in Africa.

South East Asia and Sub Saharan Africa were two regions being always compared when it comes to their economy. Now, both areas are showing eagerness to progress, and their efforts are being paid off. Each regions are supporting each other shoulder to shoulder. By making more investments, especially in Africa, they are both ahead of better days.

One of those South East Asian country that has prospects in Africa is Singapore. Just last month, 31 Singapore-based firms cooperated in a business affair in the said continent. $66 million worth of deals under negotiation is what they brought home. The country become envious of what China has become because of their investments in Africa. Asia’s Lion city is eying the oils and minerals in Nigeria and other business sectors in South Africa and Ghana.

Malaysia is also a South East Asian country that has established good business relationship with Africa since 1990s. In fact during that time, both parties showed end up with very notable increase on their trade and investment sectors. Now, they are reviving what has transpired between them before. Just like many other nations, they are investing in Nigeria. Several Malaysian plantation companies are thinking of investing in the Black continent of the similarity of its soil condition with Europe. The country is thinking of expanding their oil palm sector, through the help of Nigeria. Malaysia, Indonesia and Nigeria were the top three largest palm oil producer in the world.

And speaking of Indonesia, they also have an eye at Africa. Business organizations think that there is a similar climate conditions between them. And so, aside from oil palm, they will also try to develop their rubber plantation industry. They think they have the advantage on the said sector since only few economies have noticed the potential of the region (Africa). Indonesia’s prospect countries were Liberia and Ivory Coast.

Vietnam and Algeria also have a good connection. The two countries are cooperating to boost energy production. This is after they agreed in a partnership between the Vietnam National Oil and Gas Group (PetroVietnam) and Sonatrach, an Algerian state energy group.

Other countries with and will do investment in Africa are Laos, Brunei,and Thailand.

Author Recommends Future Africa for management consultants

The Nature of Business Relationship and Communication Style in South Africa

The 2010 FIFA World Cup South Africa is getting nearer, isn’t it? It is not just a feast for Africans and football enthusiasts, it is also a celebration for many businesses. For sure, on different corners of South Africa, especially in areas near the game venues, the atmosphere will be all about business. You’re a poor businessman if you will not take advantage of this event. Outside the arenas where players are chasing each other, where fans are screaming up to the top of their lungs, the name of the game is to profit. For both small and big business, this event is their time to shine.

However, just because the opportunity in investing in Africa at this point is abundant, doesn’t mean you are more likely to succeed. There are many thing you need to learn aside from business strategic planning and leadership development. But don’t, what trying to get at here isn’t that complicated. You don’t need to make initial researches, you can learn it even if the 2010 FIFA World Cup is about to happen. Business relationship and communication style, this can be one of the main ingredients to become successful in doing business in a foreign land, especially African countries.

First, there are two kind of South African, the black and the white. And they are different when dealing with visitors and business. White South Africans prefer plain-speaking than an overly diplomatic approach. They scrutinize each words that comes out from the person they are talking to. This is to assure that there is sincerity and commitment. Black South Africans are usually using diplomacy in communication and very observant. They let the person they are talking with finish first before they raise questions. And also, depending on the person’s cultural heritage, communication style may vary.

In common business situations, Africans like to be called in their first names. Greetings are necessary, especially for the first meeting as a sign of respect and welcome. Usually, it should be preceded by Ms or Mr. They are transactional and do not require to build personal relationships for business use. They also use metaphors and sports analogies to clear out their points. South Africans always choose face-to-face confrontations than email, letter or phone.

In making appointments, South Africans would go for the one with advance consent. Meetings should can be formal or informal, but what’s important is that you will send a letter summarizing the outcome of it. Business attires can be formal or informal, but at least, for men, wear dark coloured shirts and elegant business suit or dress for women.

By knowing how your new business environment interact, surely you won’t find trouble dealing with its people. That will make your image more desirable for Africans, especially to those who are involved to your business. Business will move in a smooth flow and profits will keep coming.

But you need to remember one point, South Africa is multicultural. When the 2010 FIFA World Cup event comes, you will need to work harder in establishing business relationship and communication style.

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