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Africa’s Probable and Possible Business Future

Investing in Africa is a potential profitable investment, but many are unaware of this. Multinational companies and many businessmen are always blinded by the international media exposure of the continent. Most of this news conveys negative images like bloody civil wars and crippling poverty. They are deceitful. Investment ideas are turned down because of the fear brought by many conflicts. But if we are going to talk about business, the future in Africa is clear. Studies show that Africa has been heading to development in the recent years despite the Global Financial Crisis. Opportunities on different aspects are enormous. From communication, infrastructure, tourism, agriculture, etc..

Africa’s profitability is one of the best kept secret in today’s world economy.” This is aline quoted by Kofi Annan, UN Secretary General. Companies in Africa have been gaining on their profit since 1990. The rate of return on foreign direct investment averaged 29 percent. More African countries tightened their policy environment. This step brought more foreign investors because of the improvement on economic stability and growth and much more liberal conditions. In 1997, 26 countries showed an appraising relatively liberal regime for the repatriation of dividends and capital. This report also indicates that policies on foreign investment are now similar to those of the developing countries. Numerous investment promotion agencies were set up on the whole continent to promote Africa’s resources as an opportunity to for businesses.

From the UNCTAD or United Nation Conference on Trade and Development, a study was released stating that between 1983 to 1997, Africa-based US companies grew by 10 percent. British direct investment net income in sub-Saharan Africa, with some parts of Nigeria increased by 60 percent between 189 to 1995. Same thing happened to Japanese affiliates in 1990. Trade between Africa and China has grown an average of 30% since 1999, topping $106 billion dollar last year

In the past decade, foreign investments have been increasing significantly. Before, there were more investment on oil, mineral and diamonds, but it is now changing. Services and manufacturing is now making a name, even in top oil-exporting countries like Nigeria. Now, more than 25 sub-Saharan governments are in the process of privatizing all or most of their telecommunication sectors to attract more foreign investors.

The future of any business investment in Africa is now more probable and possible. Despite its previous worse status, the UN and the whole continent is committed for a bigger transformation. Africa’s neediness for help is the gateway for more investments and later on, continent’s economical development. It is inarguable that Africa is a continent of commodities-with its forests, oil fields and mines. The demand is found and abundant on the darker part of the world.

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