See also:
» 06.04.2010 - Is computer learning becoming redundant in Africa?
» 22.03.2010 - "New roadmap for African rails"
» 17.03.2010 - Trade experts discuss ways to help poor countries
» 03.03.2010 - UNAIDS partner with rock icon to fight AIDS
» 25.02.2010 - Fight organised crime like a pandemic – Ban
» 23.02.2010 - UN ropes in private sector for gender equality
» 08.02.2010 - Study reveals sub-standard malaria medicines in Africa
» 08.02.2010 - Funding to help countries improve land tenure

China wholesale online through

Houlihan's coupons

Finn autentiske matoppskrifter fra hele verden på
Gazpacho Børek Kartoffelsalat Taboulé Gulasj Albóndigas Cevapi Rougaille Japrak sarma Zwiebelbrot Klopse Giouvetsi Paella Pljeskavica Pica pau Pulpo a la gallega Flammkuchen Langosj Tapenade Chatsjapuri Pasulj Lassi Kartoffelpuffer Tortilla Raznjici Knödel Lentejas Bœuf bourguignon Korianderchutney Brenneslesuppe Proia Sæbsi kavurma Sardinske calamares

Autentiske matoppskrifter fra hele verden finner du på
Réunion Portugal Aserbajdsjan Serbia Tyskland Seychellene Bosnia Spania Libanon Belgia India Kroatia Hellas Italia Ungarn Komorene Georgia Mauritius Østerrike Romania Frankrike

Economy - Development

Doing business in Africa "becoming easier"

The skyscraper horizon of South Africa's fastly growing metropolis Johannesburg

© Austin Evan/Flickr/afrol News
afrol News, 8 February
- Foreign investments in Africa are strongly increasing as the continent displays on of the world's highest growth numbers. African analysts hold that this is a consequence of improved business environments in Africa.

"The attractiveness of Africa as an investment destination has been positively impacted by a number of developments in the regulatory environment affecting potential new entrants to markets, infrastructure development and the presence of professional services firms which have experience of the complexities the continent poses," according to South African analyst Caitlin Hawken at Orange Ink.

In addition, "increases in productivity on the continent, the diversification of African economies as they move away from resources, the size of the African market and urbanisation are creating conditions that could potentially be favourable to investment," Ms Hawken holds in a new analysis.

These were also some of the views to emerge at the inaugural "African Conversation" to be convened by professional services firm KPMG in Johannesburg, South Africa, today.

Moses Kgosana, Chairman of KPMG Africa, pointed to higher than average growth forecasts for Africa for 2011 as a motivating factor for investors to look at African markets.

"It is estimated that the sub-Saharan African economy will grow by 5.3 percent in 2011, with individual economies – such as Nigeria and Angola projected to grow at over 7 percent," Mr Kgosana said. "Clearly, there is increasing confidence in Africa's economic potential as a collection of diverse emerging markets with much to offer the global economy."

According to Nicolas Maweni, an independent marketing and communications consultant with extensive experience in sub-Saharan Africa, there has been particular interest in the African continent by multinationals.

"One reason is that places like Europe and the US are not experiencing rapid rates of growth," Mr Maweni held. "Africa – or the Dark Continent, as it is often perceived to be - is now presenting these large companies with great opportunities. The challenge for these companies is to ask themselves whether they will do a 'copy and paste' as they have done in other parts of the world, or whether they will develop solutions that are relevant for Africans."

Lullu Krugel, senior economist at KPMG, pointed to some factors revealed in a survey conducted by the company into business and economic conditions on the continent, which could enable the accelerated diversification of African economies.

Moses Kgosana, Chairman of KPMG Africa

© KPMG/afrol News

"Business would like to see a greater mobility of highly skilled labour, and hence, these skills could being transferred across economies," Ms Krugel told the delegates. "The retail sector has also been identified as a growth key area, given the size of the African population. However, consumers need incomes to bring about the growth of the economy through the retail sector."

"From a regional perspective, East Africa represents a powerful market comprising five countries and 130 million consumers", said Josphat Mwaura from KPMG East Africa. Mr Mwaura, who joined a live broadcast of the event from Nairobi, Kenya, added that that region also "has historical linkages with India, China and Pakistan, which serve as crucial export destinations."

On the issue of political volatility, Mr Mwaura maintained that "political risk is a way of life in business." However, he urged the business community "to engage more proactively in identifying the issues before they blow up into a crisis."

Mr Maweni added that from a marketing perspective, there is a need to conduct a proper analysis of the four "p's" before undertaking business in Africa: "One of them is political stability in any territory one enters. If one is going to get involved in Africa, one must be patient, because Africa is not for the faint-hearted. One must also persevere. Lastly, there are lots of profits to be made in this continent."

On strengthening private-public partnerships, Ms Krugel pointed out that this had worked well in some sectors such as telecom infrastructure and that there had been mixed results in the energy sector. However, in other infrastructure areas such as water, sanitation and irrigation there seems to be "challenges" which "needed to be addressed."

Where private-public partnerships have worked well, it could be attributed to the private sector understanding the needs of the public sector, communicating with the public sector and not imposing business models applied in other countries, on Africa," Ms Krugel added.

"We believe that Africa is a continent whose 'time has come' and we would like to encourage business to participate in and contribute to what is turning out to be an extraordinary continent, potentially offering extraordinary returns on investment," concluded Mr Kgosana.

- Create an e-mail alert for Africa news
- Create an e-mail alert for Economy - Development news

    Printable version

On the Afrol News front page now

Rwanda succeeds including citizens in formal financial sector

afrol News - It is called "financial inclusion", and it is a key government policy in Rwanda. The goal is that, by 2020, 90 percent of the population is to have and actively use bank accounts. And in only four years, financial inclusion has doubled in Rwanda.

Famine warning: "South Sudan is imploding"

afrol News - The UN's humanitarian agencies now warn about a devastating famine in Sudan and especially in South Sudan, where the situation is said to be "imploding". Relief officials are appealing to donors to urgently fund life-saving activities in the two countries.
Panic in West Africa after Ebola outbreak in Guinea

afrol News - Fear is spreading all over West Africa after the health ministry in Guinea confirmed the first Ebola outbreak in this part of Africa. According to official numbers, at least 86 are infected and 59 are dead as a result of this very contagious disease.
Ethiopia tightens its already strict anti-gay laws

afrol News - It is already a crime being homosexual in Ethiopia, but parliament is now making sure the anti-gay laws will be applied in practical life. No pardoning of gays will be allowed in future, but activist fear this only is a signal of further repression being prepared.
Ethiopia plans Africa's biggest dam

afrol News / Africa Renewal - Ethiopia's ambitious plan to build a US$ 4.2 billion dam in the Benishangul-Gumuz region, 40 km from its border with Sudan, is expected to provide 6,000 megawatts of electricity, enough for its population plus some excess it can sell to neighbouring countries.

front page | news | countries | archive | currencies | news alerts login | about afrol News | contact | advertise | español 

©  afrol News. Reproducing or buying afrol News' articles.

   You can contact us at