African economies easily rank among the most resilient in the world. In the middle of the 2009 global economic recession, Africa was the only region apart from Asia that grew positively, at about 2%. The continent’s growth has been on an upward trajectory ever since then 4.5% in 2010 and 5.0% in 2011. And it has gotten even better in 2012. Africa is favourably positioned to become the 2nd fastest growing region in the world, and according to the International Monetary Fund (IMF), economic growth across the 54 countries of the continent has hovered around 6% in 2012. 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.
There is also a significant boost in the spending power of Africans. According to the African Development Bank, Africa’s fast emerging middle class is now comprised of over 300 million people, and analysts from the McKinsey Global Institute estimate that general consumer spending across the continent hovered past the $1 trillion mark in 2012.When foreign investors were being urged to make their way in Africa as by and/or from 2012 and capture a share of the Africa’s $1 trillion of opportunities; it is also our obligation to raise the siren to sons and daughters of the continent to not sleep and seize the opportunity. It is time we invest on the mother continent and TNH has specialists in most of the terrains of investment on the continent and ready to assist and advise on the opportunities in different regions of the continent and different terrains of investment such as:
Africa is ripe for a green revolution. According to the McKinsey Global Institute, the continent is currently home to 60% of the world’s total uncultivated, arable land. There’s your opportunity.As the world’s population increases rapidly (recently exceeding the 7 billion mark), global agricultural production must rise to feed these growing numbers. Much of that increased agricultural production will come from Africa. While the traditional obstacles to boosting agricultural output in Africa have been well documented (including a deficit of distribution infrastructure and trade barriers among others), several African governments are making substantial and successful efforts in surmounting these shortcomings. As these barriers are overcome and agricultural output is increased, there’ll be a business opportunity for the manufacture and marketing of products such as fertilizers, pesticides and seeds as well as a demand for food processing services such as grain refining. Already, a growing number of private equity funds are springing up to finance agricultural production in Africa. Join the train.
Several African countries like Kenya, Mauritius, Seychelles and Tanzania have become some of the world’s favourite tourism destinations — for obvious reasons. According to the United Nations World Tourism Organisation, tourist arrivals into Africa in the year 2010 exceeded 49 million and were likely to pass the 50 million mark in 2012. Those are the kind of numbers you should be taking advantage of. Several opportunities are available in Africa’s tourism sector. For example, Lake Victoria in Uganda has a substantial number of bodies of water that are still unexploited. A luxury boat cruise or tour operatorship could be a great idea. Balloon flights are also a relatively new experience for millions of Africans which could be explored as a viable opportunity. There is also room for foreign investors to partner with governments on National Park Concessions.
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 knowhow, 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. Venture in.
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. Funding infrastructural development in Africa is not cheap. According to the World Bank’s 2008 Africa Country Infrastructure Diagnostic study, the continent requires about $80 billion annually to cover infrastructure needs. Of course, 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 underperforming infrastructure—such as investing in reliable power supply, water resources, roads and railway systems.
Fast Moving Consumer Goods
According to the McKinsey Global Institute, Africa’s consumer spending next year will be in the region of $1 trillion. With Africa’s exploding middle class (over 300 million people) always looking to be serviced with new products, Africa’s fast moving consumer goods sector looks promising. There is a huge and ever growing opportunity for manufacturers and retailers of FMCGs like food, beverages, home care and personal care products. But speed is critical. Investors who can quickly step in and get a grip on the market will be the dominant players in the years to come.
For all this we say at TNH speak to us and we will assist you how to get there… we will take you there… and we open the door for you there. Africans have to now invest on the continent as it is now or never. The facts are quiet open and opportunities are very wanting… Speak to TNH business opportunities and investment specialists and have your hands on the millions of opportunities awaiting for you.