As the developed world matures, and becomes increasingly difficult to trade in as a result of limited opportunities for corporate growth.....
Africa is among the few places where entrepreneurs and businesses with ideas and an appetite for risk can bring value and find long-term growth if they are persistent, creative and determined.
As a first step, free trade between and within the African economic blocs would make a huge difference. With the 54-nation Continental Free Trade Area, Africa's own mega trade deal, even the smallest African economies could see a lift. manufacturers could see benefit form setting up production and assembly operations in multiple African countries. That could lead to development in electronics, machinery, chemicals, textile production and food processing.
Africa’s economic growth prospects are among the World’s brightest. Six of the world’s 12 fastest-growing countries are in Africa. Further, between 2018 and 2023, Africa’s growth prospects will be among the highest in the world, according to the IMF. Sectors where foreign companies could have a comparative advantage, such as banking, telecommunications and infrastructure, are among the drivers of current economic growth in Africa— creating clear investment opportunities for foreign businesses.
Africa’s youthful population contributes to an abundance of labor, which is one of the region’s highest potentials for labor-intensive industrialization, and lowers production costs, leading to benefits that far outweigh the cost of doing business on the continent. Engaging more foreign companies may help raise wage rates in Africa, improve labor market efficiency and generate additional resources for those left behind on the age ladder.
Investing in Africa is good business and a sustainable corporate strategy for foreign investors. Advanced and emerging countries’ governments and the private sector should leverage these profitable, emerging investment opportunities.
No comments:
Post a Comment