If one believes the U.S. mainstream media's current stories originating in Africa, you might think that the entire continent is simply one big war zone. We have not done any quantitative analysis to prove it, but our off the cuff theory is that if you were to receive only the same types of stories from the United States, you might also conclude it is one giant war zone. The point is that there is a lot more good and a lot of opportunities across Africa for savvy businesses looking for new markets. We have provided a few of these stories for you here.
1. Japan's PM to Pledge $14B to Africa - During his week long visit to Africa, PM Shinzo Abe is expected to pledge $14 billion in various aid and trade deals. Types of funding include a geo-thermal plant in Ethiopia, investments into Mozambique's recently discovered oil and gas discoveries, and some undisclosed projects in Cote d'Ivoire. Last Year PM Abe pledged $32B in aid, as he believes Africa to be the source of global economic growth in the coming years. That is a big statement - the source of global economic growth in the coming year.
2. Sub-Saharan Business Titans Take on the World - While foreign and even South African companies drag their feet at entering sub-Saharan markets, local businesses have thrived. Some have grown from humble beginnings into large conglomerates. These businesses were able to grow because many competitors felt the markets were and still are too risky. Take a look at the picture that shows the number and size of these local conglomerates and really reconsider the stigma about the risks. There are still plenty of opportunities for those willing to get beyond the stereotypes.
3. Water Companies Investing in Africa - Danish companies Grundfos and Kamstrup, consider to be the most sophisticated water technology companies in the world, continue to invest and grow in what they believe to be one of the faster growing regions on the planet - Africa. Both companies state their are committed to being in Africa and investing heavily. These investments hold the potential to further increase the infrastructure stability across the continent. Overall, these two companies are showcasing the potential for companies that are willing to go local in Africa.
4. Emerging Middle Class Spurs Retail Growth in Ghana - The development of shopping malls will begin to take center stage in Ghana as retailers see a boon in the middle class. Demand has created an increase in the retail markets with the expectation that demand for modern retail space will double over the next two years. Presently, South African retailers are expected to see the largest growth as a result. Growing retail demand should open up additional opportunities for companies to find new markets or increase their market reach.
5. African Oil Servicing Industry to See Over $200B Increase in Spending - For companies that provide service to oil rigs, ships, and other equipment, spending in these areas is expected to rise by over $200B through 2018. Needless to say, that is a big market opportunity in Africa for the numerous companies in this industry.
6. 2013 Saw Dramatic Decrease in Somali Pirate Attacks - Recent anti-piracy measures have been responsible for the number of attacks to plummet along one of Africa's most vital sea lanes. Providing security measures do not lax, this will open up even bigger opportunities for both goods and services providers.
These stories are only a small representation of the progress being made across the continent daily. We hope they help to illuminate the good going on across the continent. If your organization wants to blaze a new trail, consider Africa. If you need a hand, Contact Us to see how we can help your organization evaluate these opportunities.
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