Finance: How Africa’s one big problem is now her major investments and business pull – Finance

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Finance
How Africa’s one big problem is now her major investments and business pull

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Africa’s population is now serving as her main attraction.


Everyone is looking onto Africa for growth.play

Everyone is looking onto Africa for growth.

(Africannews)

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Africa’s vast population, which was once a developmental problem, is now considered a good investment indicator. Many multinational firms now  consider it a measure of market availability and opportunity for their products.

Before the year 2000, Africa is a continent usually described with her many problems.  High of level under-development is one attribute that wholly qualifies the region.

Currently, this huge population is now underpin growth of the global economy. The black continent has now become the phenomenal business destination for multinational firms across the globe.

In this regard, the Economist noted that: “Africa’s 1.2 billion people also hold plenty of promise. They are young: south of the Sahara, their median age is below 25 everywhere except in South Africa.”


Business opportunities in Africa is around her population.play

Business opportunities in Africa is around her population.

(http://socialbusinesssandy.com)

Youthfulness of Africa’s population has endeared it to many global tech companies, executives and investors. This is one immense potential that cannot be ignored by these multinationals, hence the surge in a number of programs and products targeting youths in Africa.

Today, having a specific strategy for Africa is now a common practice among these class of investors ass the region offers a high return on investments than other developing regions.

Shopping malls, cinemas, massive real estate developments and other infrastructural developments are now basic features of metropolitan cities in Africa. Majority of these projects are financed by private individuals and multinational financial institutions. With all betting their fate on one main factor, Africa’s 1.2 billion population with a middle class that has the potential to expand.

Sir Paul Collier, an academic at Oxford University said about the optimism expressed by major multinationals and investors: “…most probable cause for the optimism is that although Africa’s middle class may be small as a proportion of the total population, it really is growing fast in the big cities, which is where the foreign investors are putting their money.”

PricewaterhouseCoopers (PwC) also noted that: “With the constant rise in discretionary spending of a kind that did not exist even a decade or two ago…we can safely say it is the result of Africa’s rapidly expanding urban middle classes.”

Governments in the continent should consider optimising every opportunity offered by this trend. Thus, creating a suitable business environment that supports growth and private investments should be their main policy thrust.

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