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‘Africa is the Most Profitable Continent in the World’, Says Uganda’s President Museveni

The ideal time to invest in Africa is now. However, foreign investors do not rush to the continent as one would have expected, because decisions to invest abroad are often structured in a methodical and very meticulous manner. One of the factors mentioned is the excessively high level of risk. Risk and profit are Siamese brothers .

High-risk investments are, in the entrepreneurial world, intrinsic partners, but which result in greater profits. And the best world to welcome investments with good added value is Africa. Why? On his twitter account, the Ugandan president, Yoweri Museveni explains in 04 (five) reasons:

  • Africa is the most profitable region in the world

A report from the United Nations Conference on Trade and Development indicates that between 2006 and 2011, Africa recorded the highest rate of return on foreign direct investment, at 14%, compared to the rates of 9, 1% in Asia, 8.9% in the Latin America and Caribbean region. The global rate is 7.1%. The MTN group achieved a turnover of around 10 billion dollars; and the Dangote group posted US $ 4.1 billion on the clock.

Various factors make Africa’s profit prospects brighter and make it imperative for European, North American, Asian and Latin American companies to invest on the continent and thus contribute to its socio-economic progress.

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  • The prospects for economic growth in Africa are among the most promising in the world. Six of the 12 fastest growing countries on the planet are in Africa (Ethiopia, Ivory Coast, Mozambique, Tanzania, Democratic Republic of the Congo and Rwanda). What’s more, according to the IMF, between 2018 and 2023, Africa’s growth prospects will be most attractive in the world.
  • Faced with the aging of the population of most other regions of the world, the population of Africa, young and growing, constitutes a formidable market. 

The continent’s population is forecast to quadruple from 1.19 billion in 2015 to 4.39 billion by 2100. In 2015 alone, 200 million Africans entered the market consumer goods. Optimizing a booming market of this size calls for concrete measures to ensure the structural transformation of Africa’s economy.

Africa’s young population contributes to the abundance of labor, which represents one of the most important potentials for labor-intensive industrialization, and lowers production costs, which which gives rise to profits that far exceed the cost of doing business on the continent.

  • Internal developments in the various countries give credence to the idea that Africa’s economic transformation program is indeed under way. 

Greater macroeconomic prudence and improved global governance are some of these developments. For example, the 2017 Ibrahim African Governance Index shows that the overall African governance index has improved at an annual rate of 1.4% since 2007, an increase of more than 5%. in at least 12 countries (including Côte d’Ivoire, Tunisia, Rwanda and Ethiopia). These advances help to mitigate the idea that many investors have risk on the continent.

The achievement of the Sustainable Development Goals (SDGs) in Africa offers investment opportunities to foreign companies. There are plenty of good examples: Sumitomo Chemical’s mosquito net technology helps fight malaria; Sonatrach, JGC and Hitachi seawater desalination technology accelerates access to drinking water.

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Written by How Africa

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