Africa increasingly dominating investment attention
Foreign Direct Investment (FDI) into Africa is on a path of continuous growth according to the Africa Emergence: Rise of the Phoenix report. Growth in the region, to date, has been referred to as only the “tip of the proverbial iceberg”. Our own Yunus Suleman added that the continent has much more to offer, and that Africa is set to hold its title as one of the largest FDI destinations and one of the fastest-growing economies.
The report was released ahead of the World Economic Forum held in Cape Town, South Africa. The forum’s central theme was ‘Delivering on Africa’s Promise’, with several KPMG management and partners participating in the discussions in order to:
- Raise awareness about investing in Africa,
- Promote creative partnerships and,
- Facilitate relationship building.
Africa: a region of multiple opportunities
Africa is seen to offer investors a multitude of opportunities, with many looking for a platform to pull themselves out of the financial crisis. The continent “rode the wave” of the global financial crisis better that most other economies. The World Economic Forum was set to showcase these opportunities.
Africa is described as investor hungry. In fact, it currently has an insatiable appetite for growth. And this growth is good for investors ‒ there is undoubtedly money to be made in Africa,” said Suleman.
The continent is increasingly becoming politically stable, with continuing improvements in human rights records, social development, education and health enabling a growing, healthy and stable marketplace.
Diversity of Africa means research and understanding is key
Africa is “very diverse”, KPMG global Africa practice COO Anthony Thunstrom added, pointing out that the continent differed from countries such as China, India and Brazil. “Africa is not a country,” he noted.
The continent holds over 50 very different countries, each with varied cultures, governments, laws, opportunities, restrictions, policies and regulations, besides others, to navigate.
A prerequisite to successful investment is thorough market research, an understanding of wealth distribution and location, disposable income levels and government policies regarding new ventures and merger and acquisition activity on the continent.
Growth in the region, to date, has been referred to as only the “tip of the proverbial iceberg”. Do you agree and what are your views on the economic growth prospects of Africa?
This post was adapted from Natasha Odendaal’s article of the same title, published by Engineering News on 06/05/13. For the full article, click here
About David Okwara
Africa, Africa challenges, Africa opportunities, Brazil, China, delivering on Africa's promise, development, distribution, diversity, economic crisis, economic growth, FDI, FDI destination, Foreign Direct Investment, healthcare, income levels, India, investing in Africa, KPMG report, laws, policies, policy, political stability, politics, regulation, regulations, relationship building, restrictions, transformation, wealth, WEF, World Economic Forum