Network Africa

Network Africa



As folks around the earth eye Africa for potential investment and South Africans head north there's some supporting news to feed those aspirations, worrying reports to temper our enthusiasm and a few errors to master from.



Africa review website - Ghana's capital Accra is awash with well-informed, good-dressed youthful up and coming individuals, driving top of the range automobiles dwelling in fashionable houses. It's indicative of Ghana's economical growth, 14.4% last yr. As Stated By the Entire World Bank many African markets are forecast to be among the planet's quickest growing in 2012. Top of this listing are the DRC, Nigeria, Ghana, Liberia and Ethiopia.



 "There's a new story appearing out of Africa: a narrative of growth, progress, potential and profitability." China's trade with Africa attained $160 billion in 2011, making the continent among its largest trading partners.



 "Since The Economist unfortuitously labelled Africa 'the despairing continent' 10 years ago, a profound change has had hold." Now "the sun glows bright... the continent's notable growth seems likely to keep up."



Africa's commerce with the rest of the earth has skyrocketed by more than 200% and yearly inflation has averaged just 8%. Foreign debt has fell by 2-5% and overseas direct investment (FDI) grew by 27% in 2011 alone.



Despite projections for increase in 2012 being revised downward as a result of the so-called Arab Spring, Africa's market is anticipated to grow by 4.2%, according to an UN report earlier in the year. The Worldwide Monetary Fund (IMF) is expecting Sub-Saharan African markets to increase at above 5%. In addition to that, there are currently more than half a billion mobile phone users in Africa, while improving abilities and rising literacy are attributed to some 3% growth in productiveness.



An end to the access to considerable natural resources, numerous military battles and economic reforms have encouraged a much better business climate and assisted propel Africa's economical growth. Greater political stability is greasing the continent's economic engine. The UN Economic Commission for Africa (ECA) in 2005 connected democracy to economic growth.



Urbanisation and all this growth is putting a strain on social services in the towns, it has also caused an increase in city consumers. Network Africa



Afterward there is the more sobering information. "A continual slow down in sophisticated countries will dampen need for Africa's exports," writes Christine La-Garde, controlling director of the International Monetary Fund. Europe is the reason more than half of Africa's exterior trade. Tourism may also experience as less Europeans come to Africa, effecting vacationer dependent markets like Tanzania, Kenya and Egypt.




The South-African Reserve bank warned in-May the financial catastrophe in Europe, which consumes 25% of South Africa's exports, introduces big threats. Adverse health effects on South Africa could have severe impacts for neighbouring markets.



Another stress is the revival of political crises. Recent coups in Mali and Guinea-Bissau could have wider economical repercussions. "Mali was scoring very well, now we are back to square one," states Mthuli Ncube, the AfDB's chief economist. Kenya, Ethiopia, Uganda as well as other countries have militarily participated in Somalia, which might impede their economic systems.
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A cause for anxiety what the majority are discussing as Africa's "jobless recovery." Investors are focusing on the extractive sector, especially gold and diamonds, in addition to oil, which generates fewer job opportunities. 60% of Africa's jobless are aged 1 5 to 24 and about half are women.



But none of this is deterring South African business interest north of the border. One may ask why? South Africa's domestic market isn't providing local companies with enough increase opportunities, prompting many to look at the rest of the continent. This according to Ernst & Young's Africa Business Center's leader, Michael Lalor in an internet press meeting recently: "While South Africa is still growing nicely compared to the innovative economies, it is certainly not maintaining some of the other rapid-progress markets." Says Lalor.



Analysts are pointing out that many of another emerging marketplaces, such as China and South America, are not simple to enter, producing the remainder of Africa the obvious pick. Asia is viewed as almost excessively competitive. Latin America enterprises mean dealing having a really powerful and ever-present Brazil. Thus Africa, given its sustainable growth report and its potential, is an evident area for South African companies to develop into.



Quoted by howemadeitinafica.com Lalor says that most Johannesburg Stock-Exchange-listed firms are currently developing strategies for the remainder of the continent. Ernst & Young is experiencing strong interest from foreign companies to invest in the continent.Africa Business tips "The response from our customers and from prospective investors is overwhelmingly favorable, to the degree that people only cannot keep up. So there's no uncertainty that we are seeing major interest, both talked, interest in spirit, but additionally people placing their money where their mouths are," he mentioned.



These opinions are supported by a study done last year by Price Waterhouse Coopers. A CEO study released by PwC discovered that 94% of South African firm heads expect their enterprise in Africa to develop in the coming 12 months. PwC interviewed 32 South-African CEOs in the ICT, financial services, and industrial and consumer products and services businesses.



Bearing this in mind it is worth turning to Raymond Booyse, founder of consultancy business Expand into Africa, who recognized four blunders often made by South African businesses venturing into the remainder of the continent.



The first was: Not performing your assignments. South African firms are often not willing to spend cash on market research. "Go and look when there is a market for the products or services. Once you have established that there's really a marketplace, find out who your adversaries will be," states Booyse.



Booyse highlights that South-African businesses underestimate transportation costs and discount how nearby laws and rules sway doing business.



Secondly: Ignorance. Many South-African business individuals are unaware of local customs and perspectives according to Booyse. Through example, ignorance doesn't realise that simply simply because they're both former Portuguese colonies, what functions in Angola's capital Luanda, does not necessarily mean it will work in the northern Mozambique. In a recent report, research firm Nielsen noted that African consumers' attitudes towards technology, fashion and how to spend leisure time differ greatly. No prizes for that one.



Thirdly: Highhandedness. Booyse states that South Africans sometimes believe they know what people in the remainder of the continent demand. "In the remainder of Africa, South Africans are regularly regarded as arrogant."



Finally: Not being prepared for the high costs of conducting business in Africa. Many South African businesses are not aware of the large costs associated with doing business in the remaining portion of the continent. "If you want to spend two weeks in Angola it will cost you R40,000 (US$4,700)," notes Booyse. "It isn't affordable and easy." Flights for example, from South Africa to both Kinshasa or Lubumbashi may be pricey, and resort rates are also very high.



It's clear that Africa is a rich place to plant seed. But Africa is perhaps not for the fainthearted as business is completed in a totally distinct way to elsewhere on earth, with all manner of social and political hoops to jump through. South African firms have clear edges if they are prepared to take risks, remain modest and do their assignments and a possibly bright future.



I am Matthew Campaigne-Scott. I spent 19 years working in Missions and Ministry. I'm now enjoying the life of a freelance writer.



I've written for periodicals and internet sites, composed sermons and addresses and ready copy for investigation papers and internet ads. I could tailor my work according to your needs. I appreciate building work relationships and love a challenge.