Saturday, April 13, 2013

The New Frontier in Africa

http://www.economist.com/news/finance-and-economics/21575769-strategies-putting-money-work-fast-growing-continent-hottest

This articles talks about the potential growth in the markets of sub-Sahara Africa. In some countries there markets have risen by 50% in the last couple of years. Also, experts predict that a majority of the African population in 2020 will have income to be able to splurge on extra items. This is why they say that rich world firms will looking into Africa to invest. Another advantage is that a majority of African population is under 20 and in a couple of years Africa will have a larger working class than that of China. I believe that with the current business and the corruptness associated with places such as China firms will start to look toward the rise in Africa and start investing more. This could mean that we could see a shift of production to the African continent and maybe even cheaper goods and help solve some problems that we see in Africa.

3 comments:

  1. Ghana is a great potential market that didn't get a mention in this article. Based on its economic performance recently it's wise to invest in Ghana nowadays, and its political stability comparing to many other countries in Africa makes it a worthwhile investment.


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  2. South Africa is the second fastest growing country in the world as of right now with an average GDP growth of just over 5% per year. This not only attracts big business to invest in Africa but makes it more appealing to the global economy. Africa is also extremely abundant in natural resources such as oil that I believe it will become a feeding ground for investors in the years to come.

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  3. I agree that Ghana has a lot of potential as a growing market that should have been mentioned here. I recently read an article about the growth of the banking industry in Africa which looks extremely promising.

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