Africa: The Arena for Development of Business, To Transform Life

Africa’s growth is very exceptional. This is because despite the global financial crisis, it is the region who stood out and showed magnificent development. Since then, Africa became the center of attraction amongst developed countries. They see more development in investing in Africa more than before. But still, there is a high percentage of Africans living with just more than $1 a day. A hole that investors are trying to fill in, and will be the beneficiary of the next growth that will happen to the continent.

Nations are on a battle, but not against each other. They are wrestling against poverty, with business as the solution, and Africa as the Arena. A fight for a cause. A call answered by the whole world.

First world countries are on a quest, not to colonize the region again, but to find room for development of their own and of course, life in Africa.

The situation of the Africans is a major concern. Extreme poverty, corruption and ultimate devastation are problems that brought major business firms to the region. They have with them aids to the disease of the continent. All these aids are for long term that can sustain each Africans for years. These aids are businesses and investments.

Major areas where Africa grew are areas that businesses invested in. Improvements took place in water supply, telecommunication, agriculture, tourism, infrastructure, etc.. Who would resist the chance to ponder more on the business, and at the same time, perform a charity and give help to the people who needs it?

The coming of companies created jobs for Africans. An African news said that since Africa’s economic growth, the percentage of Africans living with just $1 a day was lessened by more than 10 percent. This would be a perfect reason to continue flourishing the continent’s relationship with developed countries.

On health sectors, African can now drink clean water because of development on water supply. Companies from Asia and America are trying to improve life in Africa by putting more focus on clean water, good food, medicine and clothing.

Corruption was also decreased with companies deciding to hand out all the aids straight to the people instead of giving the to the leaders. People aren’t slaves anymore, instead, they were given jobs wherein they will earn enough to support their family.

Africa has now taken few steps away from poverty. If more and more countries won’t be blinded by what comes out of the news, then maybe, the region would prosper more. The continent has an enormous number of virgin and untapped resources. Opportunities are found anywhere you look at. The firs phase of this achievement happened because of connection between nations and people. Africa is now involved in global economy, they are not isolated anymore. It is indeed true that you can only find light in the “darker” side of your world.

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Urbanization in Africa and The Growth Opportunities

The independence period in Africa has long been started. But after that period, nothing is changed. Supposedly, urbanization will follow after a region regained their freedom. Since there was nothing changed in leadership development, the whole continent’s suffering continued. But now, if we are to assess the Black Continent’s current condition, we can say that they have made improvement and free to predict that the development will continue on the next decades, hopefully.

Urbanization is the way to open up growth opportunities, and it has finally invaded the once poor continent. With this development, a lot of good things are about to happen. There are foreseen growth on investments, domestic and international economy and of course, Africa itself. Several sectors were touched like infrastructure, education, health, media and so forth.

Poor urbanization in Africa roots from the awful business policies and governance. Because of this, the business environment became frightful for investors. This leads to a very low employment rate. Only few Africans have decent jobs while others are left starving and dying while trying to find something to put on their plate. This is one reason why poverty is an epidemic, and growth is something surreal.

After five decades of life under unsureness, Africa has finally become certain with their goals. They realized the through urbanization, many greater things will come to them. And they worked on it, starting with transformation in governance, aiming to provide economic growth. Their hardworks were paid off because according to many researches, African countries are among the roaring countries when it comes to development.

African countries are currently experiencing the most rapid urbanization. This is initially because of the economical growth that each countries have posted. Countries like Rwanda, Nigeria, Ethiopia, Algeria, Mauritius, Ghana, etc. are among those countries where investments are flooding. Rural residents are migrating to the cities where they thought they’ve got a room to grow, a globally typecasted decision for families looking for a good life. Other than that, urbanization created a central market for each of African countries. That is what every nation needs, and that is what investors are looking for so they can have a point to explore the opportunities. And at last, they’ve found it, and it is more than what they have expected. Due to urbanization, people find ways so they can visit and make use of the business opportunities and growth in Africa.

Development in infrastructure is one of those things that made business doing easier. The progress in banking and finance, accommodation, property owning, business costs, consumer market and behavior and the learning workforce are also reasons why it is a great decision to invest in Africa. China saw all of these, and look what they are now. Business opportunities in Africa is unraveled to its people and other countries by urbanization. The country is hoping to do better by letting investors ride with what is happening to them.

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Some Countries Investing In Africa

Aside from China, there are also other countries making investments in Africa. The “Sleeping Giant” is being noted in so many business magazines, by many business experts because of what it gained from the black continent. China is the newest talk of the town, not only that it gets juice from the world’s second largest continent, also, it brings aid to the region’s dying situation. But it is not just China that is helping Africa. Investing in the continent is infamous in the whole globe. From every continent, numerous countries have sighted the potential of Africa, pulling them to invest on different sectors like agriculture, infrastructure (which was dominated by China), telecommunications, education, mining and oil industry etc..

India and UAE are currently on partnership with some African countries, working on the development of the telecommunications industry. India’s Essar Group has some eye on the African telecom business. The India based has had talks with UAE’s Dhabi Group, an investment firm led by an Abu Dhabi Royal family. The two sides signed a preliminary agreement in Abu Dhabi on Sunday. Standard Chartered Bank is acting as financial advisor to the Dhabi Group. Their prospect country is Uganda and the rest of West Africa. Since Africa is considered as one of the least penetrated by telecom markets, a lot of investments are coming because there is a potential growth.

Japan is also doing business with Africa. Just last year, the Tokyo International Conference on African Development (TICAD) was held in Yokohama, Japan. The conference tackled the issues of ending poverty in Africa. The outcome of the conference will be fed into the later summit’s deliberations – which highlight “development and Africa” as one of the principal themes.

Russia is also reviving its affair with the region. Moscow can no longer miss its love affair with several African countries, way back in 1960’s. And so, they start investing again on minerals of the region. According to rough estimates, the investments of four companies alone – Rusal, Nornikel, Alrosa and Renova – in Sub-Saharan Africa constitute about $5bn. Others are also active, including metal group Evraz, oil giant Lukoil and a number of banks. he Russian firms that are particularly active in Africa are those involved in exploration and production of mineral resources – known as “upstream” companies. However, they face tough and constantly-growing competition.

Germany is another European investment in Africa. German companies is actually one of those big providers of jobs for people. Their investment concentrates more on the oil and agriculture industry.

Jordan, Yemen and Lebanon are other three countries that have investments in Africa. They have been working on the development on the water resource of the region, with investments almost counting to $1.5 billion just within three years.

Canada has also closed US$212 million investment fund for Africa. The Fund focuses on making mid-market private equity investments across Africa in transactions ranging from buyouts to expansion and high growth capital opportunities across a range of sectors.

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The Telecommunications Sector in Africa

The telecommunication sector is another area for your investment in Africa. The rise of business potentials and more foreign investments sparked the telecom revolution. Since more African countries have undergone liberalization and privatization, telecommunication infrastructures have improved drastically. Uganda, Tanzania, Nigeria, Sudan, South Africa and Kenya are the those countries to name a few. Many African governments privatizes their former state-owned enterprises to give way to the growth of the said sector.

As of now, South Africa is the main point of telecommunication in the whole African continent. Although the country has been making an accelerated move into the region, the area is still too big. There is a wide range of people in need of communication links, and the need for better communication system keeps on increasing. To create more progress, Africa needs to connect to the whole world. And for upcoming investments, communication is essential to make business success possible.

According to International Telecommunications Union (ITU), Africa only has two telephone lines per 100 people. A very poor data compared to Europe’s four for every 10 people. They also said that growth in Africa’s telecommunication sector is yet to be experienced. But after five years, the sector is steadily growing. The region showed a considerable development specifically in mobile communications.

While fixed line telecommunication systems are developing at a rather stagnant pace, the development of wireless and mobile communication technologies and the heavy investments made in the telecommunications market have tremendously improved the growth of the sector. In 2004, only 6 percent of the total number of Africans own a cellphone, but now there are a lot of them. There are now more than 82 million mobile users in Africa: Nigeria’s mobile market is growing at over 100% per year. Mobile telephony has a positive and significant impact on economic growth, and this impact may be twice as large in developing countries as in developed countries.

The government was able to address the problems why telecommunication service was then poor. Before the development, low penetrations are caused by: 1. lack of investment, 2. investment inefficiencies, 3.) inadequate private sector involvement, 4. foreign exchange scarcity, 5. poor management incentives and 6. insufficient regional development. But all of these are defunct now. More investments are entering the region, thus, creating more growth in different sectors including the telecommunications.

Africans are not just the group beneficial of this growth, business firms are also absorbing something from it. Communication is a vital factor for one’s growth in business. It connects people and business. This is why telecommunication sector is another opportunity for people who have an interest of investing in Africa.

With the technology being introduced to the continent, a potential huge market is born. In no time, people will embrace these innovations. Instead of a luxury, it will become one of the primary needs, just like what happened to other countries. The demand for better communication will grow and everything else will follow.

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The Secret of Successful Businesses in Africa

The success of an African business is possible through effective business modeling and business strategic planning. With all the greatest challenges ahead, you need to have the most appropriate responses. Investing in Africa is a very mindful task, to become successful you must come up with the best ideas of how you can overcome them without so much delay.

But there is a secret in achieving success in an African business. One thing that will sum up all your plans and hardships. That is being ready for changes. Changes in business environment is somewhat dangerous. You’ll never know what is waiting for you. Almost everyday, there are changes happening around the continent. Sub-Saharan Africa works as a continent, no country is working for progress single-handedly. This is why changes is massive. The incapability of the African government to do intelligent business policies is also a factor. The future of any business depends on these changes. So if you want to become successful with your African business, always be ready for changes and respond to it professionally and effectively.

One of the challenges in an African business is uncertainty. This is a challenge whose ending is unknown. The lack of skills to adapt to changes is what will push a business to failures. Uncertainties in power, acceptance, production and financing are things an investor must overcome.

It is inarguable that there is a vast opportunity waiting for those who are interested in investing in Africa. But the question is, are they aware of the risks? How are they going to use their marketing strategy in the midst of corruption, financial shortage and non-civilized people. These are the areas that fluctuates up to now, even though the region has shown remarkable changes on their economy and community.

The power that the African government has can threaten business firms. Changes in government policy may ruin your business plan. And this, you need to address quickly before everything that you have worked for fades.

The acceptance of the people on foreign trades must be closely monitored. When something sounds unfamiliar to them, chances are they won’t embrace it. Africans easily change their minds. A foreign business might also sound colonization to them. You have to assure your market that you are not there to abuse their natural resources.

The global financial crisis makes the African economy’s future unpredictable. Maybe today, the African stock market is soaring but on the next day, weeks or months, be prepared because the African stock market might sink.

Changes on Africa’s business environment is the greatest challenge that an investor will face. Everyday that you wake up is another day. If you can emulate with these changes, then you should know that you belong to Africa. Successful business people are those who can keep up and endure the changes.

Top African Countries Where You Can Do Business

Most African business venture are now in the process of business transformation. Some failed, and some are still striving. Generally speaking, African region has evolved from a risky business place to a very profitable one. Most African countries are hailed as more competitive nations in the entire globe. Investment in Africa was foreseen as the most alluring trend in every foreign economy.

African countries showed tremendous improvement throughout the years. They gained in their economy even with the presence of the financial global crisis. They never got intimidated, instead, they worked harder to obtain improvement and distinction when it comes to global economy. This transition happened because of the change in governance, business policies and by creating more trades than aids. But same thing goes, doing business is also providing help for Africans.

Mauritius was recently awarded as the easiest place to do business and trade, and the top regional performer in the whole African region. From a total of 181 countries, they are 24th according to the Doing Business Rankings. The criteria for selection includes: starting a business, dealing with construction permits, employing workers, protecting investors, paying taxes, enforcing contracts and closing a business. Right now, Mauritius is 33rd among 121 countries in the Global Enabling Trade Report 2009.

Rwanda was also named as the world’s top business reformer for 2009. They showed leap on their business organization processing, making it easy for foreign ventures to start their business in the country. Imports and exports are more efficient with investors getting tighter protection. Rwanda’s ranking was based on the number of impact reforms introduced in May 2009. Liberia was also mentioned in the top 10 most improved business reforms in the world.

Another country who received recognition from the global community is Egypt. The country is among the top ten around the world when it comes to the tourism industry, posing rapid growth every year, says World Travel and Tourism Council. One possible factor is the opening of opportunities for foreign investors to get good deals when it comes to businesses in tourism. The climate of the country is another reason for this growth. The density of rain every year increased while the winter temperature stay around 22c to 31c.

Nigeria and Ethiopia weire also specified as the most potential countries for investing, an index released by African Rainbow Consulting. Nigeria showed significant improvement in access to water, electricity and ITC infrastructure. Ethiopia comes second, showing also development on mentioned sectors. Indexing was conducted by considering each countries performance in energy and water supply, ITC, social capital and governance.

Other countries where every business is possible is South Africa, the region’s number 1 country. Egypt, Morocco, Mauritius, Nigeria, Algeria, Tunisia, Ghana, Seychelles and Namibia complete the list of top ten African countries who have brighter future. Africa known as the Dark Continent is continuously shining, enlightening the world who’s on its darkest point.

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The Redeem Team of Economical Development in Africa

People are always blinded by the news in media that the continent of Africa is an image of desperation. But this perception was greatly changed throughout the years. The Dark Continent is now a great venue for most businesses all over the world. Instead of looking at the region’s helplessness, they look at it as opportunities to start and create a profitable venture. According to the IMF, most African countries gained more on their economy since their independence. And as its effect, different countries like China and Spain are investing to the region and created more profit than what they expect. Now, Africa is building a good business relationship with more investors from different countries to obtain more development.

Africa’s overflowing resources is what invites people to start a business inside the country. Huge and untapped resources are driving force of Africa’s economic growth. They have opened opportunities for many businesses all across the continent. They are found and scattered to different parts of the country. Resources includes oil and gas in Angola and Libya, mining of gold, diamond and other minerals in West and Central Africa, privatization in South Africa and Nigeria, international trade, infrastructures like pipeline, roads and highways, and telecommunications, and stock exchanges that are now blooming in many countries. Education is also an opportunity to invest. Leisure like beaches, golf, internet and many others are also open for investments.

Recently, ACR or Africa Competitiveness Report released the 2009’s top 10 African Economies. This report is made up of assessment from three credible institutions when it comes to African economy information. They are: The World Economic Forum, the African Development Bank and the World Bank. ACR is an invaluable tool for policy-makers, business strategists and other key stake holders. Might as well, African Competitiveness Report 2009 is an essential reading source for those who have an interest of starting a business in the region. Here is the list of top ten economy in Africa;

Rank Country Score
1 Tunisia 4.6
2 South Africa 4.4
3 Botswana 4.2
4 Mauritius 4.2
5 Morocco 4.1
6 Namibia 4
7 Egypt 4
8 Gambia 3.9
9 Kenya 3.8
10 Nigeria 3.8

On global ranking, Tunisia placed 36th, surpassing other third world countries. The country’s institutions are one of its favorable advantage. This improvement rest on their fairly and trustworthy government, efficiency of government spending, transparent policies, limited favoritism, well functioning health and education system and sound levels of domestic competition.

Botswana, Mauritius and Namibia also showed tremendous improvement in facing different challenges like corruption, poor system and different social conflict.

This report is a proof that in the dying times of the world economic or global financial crisis, one will rise to the occasion, and that is Africa. These ten countries are firm justifications that the continent is getting away with their typecast image of poverty. That they are now the world’s newest loved region.

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