When we hear of Ebola, bird flu, HIV/Virus, lack of infrastructure, inadequate and limited education, political/ethnic wars, we may associate these ills with Africa. As A business person, the gut reaction would be not to risk valuable capital in Africa. This is indeed a big mistake in investment decision, arising out of inadequate insight into Africa. Investing in Africa has the highest probability of multiplying one’s capital for the following reasons:
Low correlation of 0.27 in relation to other markets
Africa is a vast land of opportunities, prospects, ventures and creativity. It is an investor’s inventiveness that create the upper limit of what business to do in Africa.
The ills frequently associated with Africa constitute a very large pool for business ventures. Infrastructure needs for roads, rails, airports, power grids, education, health, IT, etc., are areas yearning for investors.
Africa has a large consumer base, offering economy of scale.
The population is not only growing fast, but is changing in character and taste. There is a rapidly growing population of educated, urbanized professionals who are sophisticated and are very brand conscious. Their consumption pattern is very different from what used to be associated with Africa. This sophistication is infecting even the uneducated population who live in villages, particularly with the impact of mass media. Careful crafting of products to suit and gradually uplift their life-style provide limitless opportunities for growing capital.
Resources in Africa are not exhausted. Minerals, oil, agricultural products, wild-life, etc are easier to raise than anywhere else in the world.
Labour is plentiful and the young working age can be formed to handle any type of business.
Africa leads the world in the adoption of mobile technology. This makes communication and even business transaction, very efficient.
African countries implement simple but effective registration systems for businesses.
Intra-Africa trade barriers are falling. The large block of Africa can easily be linked with the rest of the world for marketing products.
Africa has the largest GDP, growing at an average rate of 6%.
Land is in plenty and can be acquired within a short time for setting up a business.
Debt recovery in Africa is fast and easy.