Archive

Posts Tagged ‘Economic growth in Africa’

Is Africa Worth It?

Africa has long been known as one of the last great frontiers on the planet. Thus, many have attempted to make the most out of it. However, as history have shown, a lot of these attempts failed severely, mainly due to the difficult challenges that the continent poses.

Even in the modern times, venturing into a business in Africa seems to be an impossible task, what with all the troubles that are likely to be encountered in the continent. Yet, many are still trying to penetrate the continent despite all this. Thus, the question is raised: is it really worth all the effort to invest in Africa?

To Answer this one, it would be a good idea to look into the continent’s economic conditions. The truth of the matter is, Africa can’t really compare to either Asia or Europe in terms of economy. In fact, of the thirty poorest nations in the world today, more than half of this are found in Africa.

And it doesn’t end there yet. Africa’s social climate is also not that great. The continent has been riddled by both international and domestic conflicts, which has also greatly marred the peace and order situation in the continent. Furthermore governmental lapses, corruption, and mishandling of the countries’ resources in the past and up to the present have greatly aggravated the situation.

Looking at this, it seems that the condition here is indeed very bleak, not only for the people, but also for investors. However, there is actually still much hope left for the continent, as Africa is now slowly taking small steps towards economic growth. For instance, despite it being considered as one of the poorest countries in the region, Nigeria’s economy has in fact grown by seven percent yearly for the last ten years. And while still not that much significant, other countries in the continent have also shown positive growth in recent years.

It is this small ray of light that many of the incoming investors here are banking. And this one is actually a good idea on their part. As these investors are courageous enough to do business in Africa, they are actually the ones who are going to greatly help in hastening the growth of the continent’s economy. Furthermore, it is also very advantageous for them to be the first ones to move into Africa. Since, most will shy away from the continent, they have the markets all to themselves, which means they will be able to get a better foothold.

However, this doesn’t mean that an investor can easily get in and expand in the continent. As have been said earlier, there are a lot of challenges that need to be overcome before one can actually succeed here. Furthermore, though it had been said that the economy is rising up, it is still pretty much a shaky one. Any unexpected event can easily collapse the whole African market. Thus a word of caution is still very much needed before moving in. nevertheless, Africa would still be viable as the next economic powerhouse here.