Friday 22 February 2013

More Investor Speculation Over Making Investments in Africa


Africa has long been considered a speculative investment. Although plagued with a troubling history, the region has finally begun to fix its widespread economic problems and analysts predict that profits should begin to flow and stock markets should rise. A major influence on Africa’s economy and where it’s at today is largely due to China’s is hunger for natural resources; the same resources African countries have an abundance of. As China flourishes as does India’s exports, giving India a greater standard of living and contributing to their economic prosperity.

It’s a great time to start investing in Africa considering you have the whole continent open to you, with very little competition and a political environment far better than it has been in the past 20 years. The African continent has long been hyped for its abundance of natural wealth and favorable demographics, but the escalation of better governance was the game-changer. Improved governance, investments by Eastern countries and the resolution of the debt crisis have resulted in substantial advancement in supporting businesses and the resulting maturation of the business climate within Africa.

Economic indicators all point to the tremendous investments and business opportunities available in the region. Recruiting local expertise is definitely critical for Africa, small enterprises have the potential to create jobs and sustainable economic growth. The best way to contribute to the success of these enterprises is to make investments in Africa, which will provide the region new cash flow. Business people should not see government as an obstruction to their aspirations but rather a rich source of information on how to engage and commerce in that country.

Mining and natural resources are only a piece of the investment story of a continent where over a thousand languages are spoken and climates vary from scorching deserts to frozen glaciers. India has come a long way, being partners with China does wonders to the power of India’s economy. As China prospers alongside will partners and affiliates of this country, contributing to a pool of emerging markets, rather than just China. China is a part of a larger picture in terms of our global vision and many investment trends will derive from the observation of Chinese investments and economic activity.

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