African Business: Africa is Untapped

by Efeturi P. Odele

Africa is the world’s second-largest continent in landmass and also the second most populous continent with about 1.033 billion people. Presently, the economy of most African countries are growing faster than the economies of most developed countries because most developed countries are near their economic zenith (convergence in economics).

Reasons for investing in Africa:

  • Large market opportunity. It is true that about forty percent of Africa population are estimated to live below US$1.25 a day. However, about sixty percent are not and are in high demand for products and services.
  • Potential for infrastructural and agricultural development.
  • Huge mobile communication need: Africa currently has the highest growth rate for cell phone use globally. Even most Africans that live below US$1.25 a day own cell phones. This indicates that the telecommunications industry has a vast market in Africa.
  • Africa has the most natural resources in the world.
  • Huge skilled workforce of mostly youths (inclusive of a large percentage of foreign trained graduates).
  • Increasing need for electricity: Most rural communities in Africa are yet to be connected to national electrical grids. Therefore, even small scale investors can offer solutions.
  • Increasing number of profitable local and international companies operating in Africa (including Telecom Company MTN, Nigerian Breweries, South African Breweries Limited, Dangote Group amongst others).
  • Low tax rate in most Africa countries.

The risks of investing in a number of Africa countries remain relatively high due to political uncertainties and lack of commitment by most African leaders to strategic and sustainable economic development of their country. However, having attended a number of developmental youth programmes in Africa and Europe (including the maiden edition of the African Students Leaders’ Summit held from September 6-10, 2010 at the University of Cape Town, South Africa and the One Young World Summit held from September 1-4, 2011 in Zurich, Switzerland), I am confident that the emerging generation of African leaders will be able to address the continents challenges amicably within the next two decades.

About the author:

Efeturi Paul Odele (26 years old) was born in rural Nigeria. He is presently a Graduate student, studying Project Management at the Russian Presidential Academy of National Economy and Public Administration in Moscow, Russia.

Contact: Efeturi P. Odele, Mobile: +79854247844, Email: odele007@gmail.com

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