Some Countries Investing In Africa

Aside from China, there are also other countries making investments in Africa. The “Sleeping Giant” is being noted in so many business magazines, by many business experts because of what it gained from the black continent. China is the newest talk of the town, not only that it gets juice from the world's second largest continent, also, it brings aid to the region's dying situation. But it is not just China that is helping Africa. Investing in the continent is infamous in the whole globe. From every continent, numerous countries have sighted the potential of Africa, pulling them to invest on different sectors like agriculture, infrastructure (which was dominated by China), telecommunications, education, mining and oil industry etc..

India and UAE are currently on partnership with some African countries, working on the development of the telecommunications industry. India's Essar Group has some eye on the African telecom business. The India based has had talks with UAE's Dhabi Group, an investment firm led by an Abu Dhabi Royal family. The two sides signed a preliminary agreement in Abu Dhabi on Sunday. Standard Chartered Bank is acting as financial advisor to the Dhabi Group. Their prospect country is Uganda and the rest of West Africa. Since Africa is considered as one of the least penetrated by telecom markets, a lot of investments are coming because there is a potential growth.

Japan is also doing business with Africa. Just last year, the Tokyo International Conference on African Development (TICAD) was held in Yokohama, Japan. The conference tackled the issues of ending poverty in Africa. The outcome of the conference will be fed into the later summit's deliberations - which highlight "development and Africa" as one of the principal themes.

Russia is also reviving its affair with the region. Moscow can no longer miss its love affair with several African countries, way back in 1960's. And so, they start investing again on minerals of the region. According to rough estimates, the investments of four companies alone - Rusal, Nornikel, Alrosa and Renova - in Sub-Saharan Africa constitute about $5bn. Others are also active, including metal group Evraz, oil giant Lukoil and a number of banks. he Russian firms that are particularly active in Africa are those involved in exploration and production of mineral resources - known as "upstream" companies. However, they face tough and constantly-growing competition.

Germany is another European investment in Africa. German companies is actually one of those big providers of jobs for people. Their investment concentrates more on the oil and agriculture industry.

Jordan, Yemen and Lebanon are other three countries that have investments in Africa. They have been working on the development on the water resource of the region, with investments almost counting to $1.5 billion just within three years.

Canada has also closed US$212 million investment fund for Africa. The Fund focuses on making mid-market private equity investments across Africa in transactions ranging from buyouts to expansion and high growth capital opportunities across a range of sectors.

Africa and the Industry of Information and Communication Technology

By providing an intense effort in improving life, by pondering the Information and Communication Technology (ICT) Industry, Africa sees a brighter future. The quest for organizational development is handy because of this innovative industry. The potential of ICT as a tool for social and economical development shows in the first and second world countries. The adoption and its entire use eases the fight for development in areas like health, education, governance and others.

Africa now has the world's fastest growing industry. Their efforts are paying off. More African nations are embracing ICT to make their developmental programs more attainable. The government of most African countries created a market liberalization and regulatory form to attract more investment in the ICT sector. Since the region is making a scene in this industry, opportunities for growth in the Information and Communication Technology is also fruitful. The liberalization of the sector creates vast opportunities for aspiring investments. The demand is high and getting higher each year. This can only be fed through further investments, international or local.

Mobile phone penetration rates are blooming widespread the region. Delta Partners, a leading management advisory and investment firm, said that mobile broadband in Africa is an industry about to explode and will grow exponentially on the next two years.

The progress started a couple of years back. Since 2000, the initial population of mobile subscribers, which is 335.4 million grew to 73 million in 2003 alone. They have also constructed underseas cables. Mobile operators are very eager to develop 3G networks to enhance the availability of high speed networks. Broadband is very evident as the driving force on the growth for mobile operators and as the mechanism towards creating the stickiness factor especially in identifying value customers. Business experts are sure that by the end of this decade, that growth will grow even more because of the perpetual neediness for innovations on telecommunications and internet access.

The Kenyan government paid U$9.5 million to to Alcatel-Lucent to enable the firm order initial materials.

South Africa leads undersea cable initiative while Nepad leads the initiative in EASSy. Their mobile operator Vodacom is also bidding for Ghana.

Libya Africa Portfolio's Green Com has also acquired a majority shares in Uganda Telecom (Utl.) It also made an acquisition of majority stake in Rwanda's telecom company, Rwandatel.

MTN Group, Africa's major mobile phone operator has also increased its shareholding in MTN RwandaCell to 40 percent.

Reliance telecom from India joined Uganda's telecommunication industry by investing $200 million.

Independent Communications Authority of South Africa has licensed four more Pay TV players to compete with the incumbent Multichoice's DSTV. These new players including the Telkom Media has been in operations since mid 2008.

These are just examples of ICT developments that took place in the continent of Africa. ICT industry is one of the fertile grounds that one can invest in. On the coming years, Africa is expected to be one of the most advanced regions when it comes to Information and Communication Technology.

Competition in Africa's Business Environment

Now that Africa is becoming one of the world's best business venue, competition might get tougher. All types of businesses will need a more intense and effective business modeling to keep up with the heat of the battle. Doing business in Sub-Saharan Africa will become harder to bear because of the rise of more foreign investments.

Competition in Africa's business sector is expected to become tighter. This is all because of the growing number of investors being invited by the region's overall growth. Countries with large economies were the premiere investors in Africa. One of them is China which focuses on oil, mining and infrastructure business. But as always the first one to come is the one who gets much of the advantage. This is why Chinese investors are making the most of the moment while everything is still fresh and hot. China is one of Africa's best business partner right now. With their wide spread investments, the continent is helped out to cater the needs of Africans. United States is also one of the primary investor in Africa. These two countries are perceived as two banging stones in African business and in the global economy.

But as experts said, no business in Africa will be cornered or get left sagging in their respective industries. Africa has a very competitive natural resources, enough to sustain the life of any African business. Plus, the large population of the continent is a great prospect to become consumers. The consuming behavior of most people are also improving. More people are introduced to innovations. Slowly but surely, Africans are embracing them to make their daily living better. A tighter competition can only be a disadvantage for businessmen if they don't know how to abide it.

On a brighter side, competition in Africa's business environment will spur growth on the continent's different sectors. It will stimulate progress through innovation and greater productivity. More production means more supply. Like in food business, if there are more ventures on food production, people will never run out of sources. Lesser rate will suffer from hunger. ICT is also one of the most improved sector. Majority of the population of the whole continent is seeking for something that will make their life more convenient. Anywhere you look at, you will find someone asking for a change. What Africa needs is more investments on their ICT, agriculture, education, health services, infrastructure, etc.. You can be the one that they are looking for.

Competition just needs to be fair and everything else will end up positive. Competitors are not there to thwart you from achieving your goals. There's nothing that can stop you from getting what you want if you badly want it. Problem can come in the form of poor management and ineffective decision making but can be resolved through business consulting.

A Collection of Stats and Facts about the Development Happening in Africa

The drizzle of investment in Africa is attributed to its continent-wide development. Africa's improvement is felt throughout the region. And proofs to this statements shows on the stats and facts released by different credible organization like World Bank, IMF, United Nations and other international organization in connection to Africa. They have seen growth on different sectors like government, business, investment, finance, economy, education, information technology, agriculture and quality of living and health. Though the region is still way far from full achievement, more growth is expected prior to what is happening to them right now.

Government

• Each decades, from 1960's to 2008, the number of coups declined. From a high of 24, it fell to five.

• Four countries namely: Mauritius, South Africa, Botswana and Cape Verde, ranked in the top 40 democracies of the world. This is according to the Economist Intelligence Unit.

• More elections are being held in the 21^st Century as compared to 1960s and 1970s.

Business, Investment and Finance

• Mauritius, South Africa, Namibia and Botswana belong to the best countries to do business according to 2006/07 Doing business Indicators.

• Rwanda is also named as one of the most business-friendly nation and top business reformer. Egypt is also emerging when it comes to tourism industry.

• Nigeria and Ethiopia were also named as the most potential countries for investing, this is according to African Rainbow Consulting.

• Foreign private capital inflows surpassed foreign aid with $38 billion in 2006.

• The Industrial and Commercial Bank of China (ICBC), purchased a 20% stake in Standard Bank of South Africa. At the time, the transaction was the largest international investment completed by a Chinese company.

• Africa's mobile banking technology is the most advance in the world.

Information Technology

• In early 2000s, the number of mobile phone users grew by by six folds.

• The growth curve in mobile devices in Africa will more likely surpass the US in number of mobile consumers.

• Africa is the fastest growing mobile telecom market in the world: seven out of 10 phones in Africa are mobile.

• Local Internet access is now available in every capital city on the continent.

Black Gold

• Africa is still one of the world's best sources of oil reserves, holding about 10% of the overall demand.

• By the end of the decade, Africa will attract $50 million worth of investment in the oil sector. Countries like Angola, Chad, Sudan, Nigeria, Congo Republic, Gabon and Libya are very promising when it comes to oil business.

Education

• Enrollment in lower secondary school rose to 46% in 2003 from 28% in 1991.

• Although literacy rates have greatly improved in Africa over the last few decades, approximately 40% of Africans over the age of 15, and 50% of women above the age of 25 remain illiterate.

Quality of Life and Health

• Countries such as Rwanda and Uganda gained on the life expectancy of people, with 12 and 7 respectively.

• The rate of family living with just $1 a day declined by 6% from a period of 1990 to 2004

• Growth in living standards is remarkable and was the highest in Africa's history.

Assessing the Overall Progress in Africa

From the past decades, the outcome of Africa's overall leadership and organizational development was notable. This is why more and more investment are coming to Africa. During the global financial crisis, the continent stood out. Their progress is seen as the continent's new trademark, not poverty, not HIV. Once a neglected continent, Africa is now the newest attraction for businesses. This overall progress in Africa is felt throughout the region and witnessed across the globe.


The overall development of the whole continent of Africa is seen on different areas that were badly assessed before. They used to be determinants of the region's poverty, but now, they are indicators of Africa's improvement. Even though there are still countries who are stagnant on their economic and political conditions, generally, the continent has experienced considerable progress in recent years.


Statistics show that the percentage of people in Africa living under $2 per day was has been reduced. Although it only declined by a smaller percentage, it is already achievement going back to what they are in a number of decades. Africa has made an comeback in their economy after the economic breakdown in 80's and 90's. Poverty reduction and economic growth started since then. They started a war against their negative image by changing their perceptions in development. Between 1999 and 2005, number of Africans living in poverty dropped by 7% from 58% to 51%. this progress is faster than what happened to the some countries in Asia. Majority of the African countries averaged more than 5% annual GDP growth for the past years. These countries have published fiscal balances into surplus, bolstered reserves, and kept inflation rates in the single digits.


This success is associated with the strong local leadership and supportive international partnership. Also, contributor to this success is the improvement on business policies and opening up of the entire (almost) region to foreign trades. There are now more access to health, education and clean water in Africa. There is also a potential improvement on the infrastructure, telecommunications and agriculture.


The Sub-Saharan Africa is doing progressive actions slowly but surely, one step at a time. Because of these actions ,growth rained throughout the continent. Different sectors automatically went with the flow. Here are some stats about the growth on of Africa's little problems that can become important factors in the continent's more intense battle for development.


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Africa’s under-5 child mortality rates declined from 229 per 1,000 births in 1970 to 146 in 2007.
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Measles deaths dropped by 90% in just six years, from roughly 396,000 per year in 2000 to 36,000 per year in 2006.
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AIDS treatment has expanded from reaching roughly 10,000 people in 2001 to more than 2 million in 2008.
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Primary school net enrollments jumped from 53% to 70% between 1991 and 2006.
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Adult literacy increased from approximately 27% in 1970 to 62% in 2007.


These are just introductory facts and stats about Africa's overall development. There's still a lot more to come.



Author Recommends Future Africa for business service providers

The Right Time To Invest In Africa

Before, the the right time for investment in Africa was way far too long. The former condition of Africa was a threat to most investors. But now, they are hasting and rushing to do business in Africa. As what they have witnessed from other businesses, growth is strongly prevailing. Africa has now escaped their negative image because of their successful organizational development. The present status of the continent seems proudly shouting “The right time to invest in Africa is now”.

Right, the time is now. While the whole world is struggling because of the global economic crisis, Africa posted a remarkable growth in their economy. For the past decades, the Black continent is transforming into a flaring torch that will bring and burn all business struggles altogether. It is raining opportunities. Businessmen and Africans are fetching them.

Generally, the continent improved on different areas of each country. Several countries like Uganda, Tanzania and Nigeria had a tremendous growth on their GDP. These three countries grew by 8%. Over all, sub-Saharan Africa grew by 6.3% for the year 2009. Mauritius and Rwanda are also among the world's safest places to do business for 2009.

Researches stated that the over all development of Africa on business policies and good governance indicates they are now ready for global business. These growths also opened up improvements on different sectors/areas like infrastructure, IT outsourcing, telecommunications, manufacturing, agricultural reforms, trade industry, banking and finance, education and health. Smaller types of businesses are also gaining profits because of the opportunities loosen up by these progress.

Africans are now more active when it comes to business. They are now able to work and find a living for their family through the jobs brought by investors. More and more Africans are sent to school. Diseases like HIV and malaria are also addressed. Poverty is reduced and clean waters are provided to residents. Local areas are now more open for businesses and foreign products. Africa is slowly slipping away from its roots.

Now is the time to invest in Africa. Investors should take advantage of many factors that is making Africa a business-friendly continent. There is a stability in Africa. With countries surmounting their debts, expect that it will continue on the coming years. Opportunities will provide this stability. Once they get used of doing business in Africa, everything else will be as easy as the alphabet.

New policies in Africa is also favorable for any type of businesses, coming from any parts of the world. These policies are not jut for foreign investors. It has actually boosted local economies.

Investors shouldn't let these opportunities pass them. There is a huge selection of areas to invest their profit. Construction companies, call centers, IT, agriculture, infrastructure and media are among those choices. Africa is a very promising land. The potential is appealing. Opportunities are outstanding. There's nothing to wait for. The right time to invest is now.

The Telecommunications Sector in Africa

The telecommunication sector is another area for your investment in Africa. The rise of business potentials and more foreign investments sparked the telecom revolution. Since more African countries have undergone liberalization and privatization, telecommunication infrastructures have improved drastically. Uganda, Tanzania, Nigeria, Sudan, South Africa and Kenya are the those countries to name a few. Many African governments privatizes their former state-owned enterprises to give way to the growth of the said sector.


As of now, South Africa is the main point of telecommunication in the whole African continent. Although the country has been making an accelerated move into the region, the area is still too big. There is a wide range of people in need of communication links, and the need for better communication system keeps on increasing. To create more progress, Africa needs to connect to the whole world. And for upcoming investments, communication is essential to make business success possible.


According to International Telecommunications Union (ITU), Africa only has two telephone lines per 100 people. A very poor data compared to Europe's four for every 10 people. They also said that growth in Africa's telecommunication sector is yet to be experienced. But after five years, the sector is steadily growing. The region showed a considerable development specifically in mobile communications.


While fixed line telecommunication systems are developing at a rather stagnant pace, the development of wireless and mobile communication technologies and the heavy investments made in the telecommunications market have tremendously improved the growth of the sector. In 2004, only 6 percent of the total number of Africans own a cellphone, but now there are a lot of them. There are now more than 82 million mobile users in Africa: Nigeria's mobile market is growing at over 100% per year. Mobile telephony has a positive and significant impact on economic growth, and this impact may be twice as large in developing countries as in developed countries.


The government was able to address the problems why telecommunication service was then poor. Before the development, low penetrations are caused by: 1. lack of investment, 2. investment inefficiencies, 3.) inadequate private sector involvement, 4. foreign exchange scarcity, 5. poor management incentives and 6. insufficient regional development. But all of these are defunct now. More investments are entering the region, thus, creating more growth in different sectors including the telecommunications.


Africans are not just the group beneficial of this growth, business firms are also absorbing something from it. Communication is a vital factor for one's growth in business. It connects people and business. This is why telecommunication sector is another opportunity for people who have an interest of investing in Africa.


With the technology being introduced to the continent, a potential huge market is born. In no time, people will embrace these innovations. Instead of a luxury, it will become one of the primary needs, just like what happened to other countries. The demand for better communication will grow and everything else will follow.

Author Recommends Future Africa for Organizational development