One thing remains certain: most African people may be poor, but Africa overall is one of the richest continents in terms of natural resources: petrol and gas, gold, diamond, cooper, uranium, manganese, phosphate rock, platinum, bauxite…
Being largely dependent on agriculture for employment and exports, foreign direct investments in Africa have been largely focused in minerals and mining. However, there is in recent years a growing involvement in food processing, infrastructure development and tourism as well as other service sectors.
Few years ago, many economies in Africa have been run by states which is no longer the case. Today, many of those previously state-run economies have been privatized, offering therefore competition and participation from both the domestic and foreign private sectors.
The United Nations estimate that by the year 2050, the total population in Africa will double and reach 2.5 billion, the equivalence of 25% of total world population.
Taking into consideration its huge natural resources, a young population, low cost-labor, considerable modernization efforts… can you as a foreign government, foreign individual, foreign investor, public-private sector firm… afford to continue marginalizing the key role of Africa in today and future economies?
It might seem hilarious to many when watching TV or traveling to Africa to see at a stop traffic light a person driving a Hummer car in one side and at the opposite side of the road a person transporting goods in the back of his donkey. Huge gap isn’t it?
While many will see aggravated poverty level, very few see big golden opportunities to come up with tactical and strategical decisions to find solutions and fill those gaps. Those very few individuals, governments, business people, investors… are today in Africa, making huge money because they understand the following:
An Emerging Market
With Africa emerging, it offers huge opportunities with the highest ROIs in the world averaging 15-25%. The United States for instance no longer offer those types of returns. 2-3% is the average return.
High Business Growth
In Africa, businesses are growing so fast that as an investor, you have the luxury of formulating exit strategies and invest in many more lucrative activities.
While making good money in Africa, you also participate in its development: win-win business deals that African populations are in desperate need for.