Africa is becoming an increasingly attractive hub for foreign investors in light of various economic, political and social reforms that are sweeping through the continent, resulting in a much improved business environment conducive for foreign direct investment. Apart from that, there is widespread development of critical social and physical infrastructure, and there is an increasing pool of well-educated, English-speaking, enterprising workers in most countries across the continent.
If you’re a foreign investor who is yet to make a foray into Africa, now is the time to step in and capture a share of Africa’s many opportunities in the below areas.
Investing in infrastructure is critical to Africa’s growth. While there have been significant improvements in the development and quality of infrastructure across the continent, there is still a clear-cut deficit. Needless to say, this shortfall has its consequences, including bottlenecks in the smooth running of trade and export activities. the financing capacity of individual country governments is limited; hence there are opportunities for private investors to partner with African governments in the development of under-performing infrastructure—such as investing in reliable power supply, water resources, roads and railway systems.
Africa is ripe for a green revolution. As the world’s population increases rapidly, Africa is not left aside as she has a large percentage in the total world population. Global agricultural production must rise to feed these increasingly growing numbers. Much of that increased agricultural production will come from Africa.
Several African countries like Kenya, Mauritius, Seychelles, Nigeria and Tanzania have become some of the world’s favorite tourism destinations — for obvious reasons. There is also room for foreign investors to partner with African governments in investing/developing the African tourism sector.
Mining of Solid Minerals
Several African countries have vast deposits of mineral resources that have been left largely unexploited because of a lack of technical know-how, as well as the financial incapacity to embark on capital-intensive mining projects. A case study is Nigeria’s hugely underdeveloped mining industry. The country also has a wide array of mineral resources which include iron ore, coal, bauxite, gold, tin, lead and zinc which have been neglected because of the country’s preoccupation with its massive oil deposits. The Democratic Republic of Congo, Tanzania, Namibia, and Zambia are other examples of African countries that also have unexploited high-value reserves of diamond, cobalt, gold, copper and other resources.
In every action towards progress, speed is critical. Investors who can quickly step in and get a grip on the market will be the dominant players now and in the years to come.