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Why you should invest your money in Africa

Updated on July 27, 2017
Where you see challenges, China sees opportunities.
Where you see challenges, China sees opportunities.

Where ever there are challanges opportunities exist.

As an African decent, my ultimate dream obviously is to see the condition of Africans in Africa improves. I always dream that one day the countries of this land would unite. And together they’ll bring once again enlightenment to the world like the Black Egyptians in Africa once did. Africa, the land of all people, the second largest continent with nine hundred million people is composed of 54 different countries.

As an American, can you imagine United States of America being split into 52 separate countries? How unpractical would it be for us to trade? Conflict among states would have become an issue; war would have become inevitable just like we have seen with different nations in Africa. A united nation of Africa is the only solution. As long as Africa is divided between different countries she will always be a prostitute for empires to pimp.

Africa is the richest continent in natural resources, and yet most of her people are among the poorest in the world. How that came to be is an issue that most economist would prefer not to elaborate about. Those that do either lied abut it or they simply won't tell or don’t know the truth. There is only a handful of economist who would tell you the truth about why Africans are poor, but they're not famous. Anyhow those who knows the truth would rather avoid talking about the issue.

However, some countries have been looking to built new factories or invest in local enterprise in some of the African nations. Countries like China sees opportunities in Africa and for that they look to build factories, which is a good way to help Africa. The method that’s not helpful to African nations is when these countries are offered help in the form of charity. That money never got to be distributed or invested within the economy of the country for which it was intended. The best way to help Africa, is to invest in it infrastructure by building roads, schools and factories.

We live in a time where the world economy is connected and accessible via the World Wide Web. Once our economy becomes fully connected it will become laughable for us to even think of ourselves as separate government. We have already seen, how the recession can effect the world economy; what will happen next is a joint venture between some of the biggest corporations in the world. This is why some companies are now exploiting the opportunities that are currently available in Africa.

These companies understand that if they want to continue growing they must expand their operation to the world poorest population by formulating products that the poor market can afford. The ability to increase sales by expanding an organization’s activities or operations to a different region is the outcome of a growth strategy.This strategy can be manipulated to understand how to market products to populations where the income levels of the individuals are substantially lesser than most average countries.

This strategy will have to incorporate an intense integrated low-cost differentiation strategy so that it become effective. What I'm conveying to you here is that corporations that choose to inverst in those poor areas in Africa must produce at a price that is advantageous to them so that they make a profit.

I presume, since the income of the population in some countries in Africa are that low, corporations might as well consider building their factories there. The purpose of doing that is to raise the income of the very population they wish to sell their product to. They should do that by providing the Africans with jobs while subsequently developing a market for prosperity and growth to take flight. It is very much like the paradox, killing two birds with one stone. To fully understand Africa, one must have some comprehension of the opportunities that are currently open to investors. To consider these opportunities, one must also have some understanding of Africans in Africa.

Some people say that Africa is a dark country, has an AIDS epidemic, high poverty rate, etc. These are things that some people say about Africa. Unfortunately, those who are ignorant of Africa will not benefit from the opportunities that are currently available in it. George Campbell, the geographer once said “The only thing that is dark of Africa is our ignorance of it.” I now understand his reasoning since most people seems to think of Africa as a country.

For one to say that there are no opportunities in Africa is to say that there is no opportunity in gambling. It’s true that there are challenges in Africa, but wherever there are challenges, opportunities exist. Investors can lose or make money in Africa just like any stock investment. The bottom line is that investing in Africa is a low risk invesment depending on how one looks at it.

In order for investors to invest in Africa, they must understand that corporations follow the law of a ruling government, but they are not controlled by them. They're there to protect the interest of the corporations and to protect the platform in which business is conducted. If people can begin to understand that, they would come to realize that the world is not truly being governed by countries, but instead by corporations. It is only then potential investors can understand why investing in Africa is a good investment. Until then some investors will continue to neglect the opportunity to develop markets in the countries of Africa.

A threat can also be described as when a company fails to take advantage on a currently available opportunity. A company that fails to act on an opportunity because they have miscalculated the future outcome of their investment has left the door open for their competitors to initiate a threat. This is why any company who has invested in the opportunities that Africa has to offer will have established a customer base that will not be comparable to new arrival competitors. Since it’s not possible for companies to invest in all the opportunities that Africa has to offer, every opportunity they missed or leaves pending they’re leaving themselves exposed to a potential threat.

On Wednesday, October 24, 2007 Goldman Sachs released a report that predicted that by the year 2020, Nigeria will be among the top ten world economies. The report also indicated that CNBC has Launched CNBC Africa, a 24 hrs news network. My first respond to this was why would they do that? They have implemented a growth strategy by moving part of their business to a different region. Then I realized why - they have done it because they have access to information that projects certain outcome that most of us regular folks just don’t have.

I believe the incentive for initiating this news network in Africa reveals that they expect investment to fallow. If you take a look at the report, you’ll notice that inflation has decreased from double digits to single in countries like Zambia, Egypt and Nigeria. Looking at this report, one can also noticed that there are other opportunities that are available for many companies in America to initiate an investment.

For example, Tanzania needs investors to help established standards for organic produce, that’s an opportunity. New roads need to be developing, that’s opportunity, and energy needs opportunity. 10% of Nigeria’s population has bank account, that’s opportunity, needs for automobiles equal opportunity. These opportunities that are currently available to companies all over the world; it is up to you the executive to decide whether you see opportunity or challenges.

What this report demonstrate is that a threat must not necessarily occur in the present tense; sometime the most severe threat lies in the unpredicted future. Therefore, this is why it’s extremely important for companies to follow trends like return on investment, gross domestic product, public needs and population expansion. This way, companies will be able to envision where the next economic boom will take place, so that they can take appropriate measures to exploit every opportunity they get.

Although companies should pay attention to these future threats, the present threats are just as significant if not taken seriously. However, the current threat to some companies is their inability to quickly deploy their dynamic capabilities which are helpful for introducing new products to be sold in the market. This inability will then open new doors for new entrepreneurs to initiate a threat.

The ability for other entrepreneurs to enter the industry is always a threat to any company, regardless of its size. The last threat I will mention is the major stakeholders, which are the stockholders, their ability to redraw from their investment is a huge threat that all organization faces. Now, if you sorely think in terms of threat you’ll never notice an opportunity. As a company, it’s always important to manage risk by weighing opportunities with weaknesses & threat. It is the only time; you’ll know whether or not an opportunity is advantageous.

Honwell, Lafayette. “Procter & Gamble looks to poor markets for growth.”[Mongabay] Available, July 15, 2007

Kambo, Frederick. “Addicted to the hustle.” [Goldman Sachs] Available, Oct 24, 2007

be advise the respond from the first anonymous at the above link is me.


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    • profile image

      Apostle Conto 6 years ago

      Great Analysis of the socio-economic state of the Continent!

      However, I propose a new approach for a new Continent of Africa. There are three levels of Liberty that Africa must go through before she can reach the point of economic prosperity, or what I call Liberty from Poverty.

      She has reached the first two, and on her way to the final stage. The first stage was Liberty from Death, Spiritual Power, with the coming of the Gospel through Liberia. The second was Liberty from Slavery, Political Power, with the coming of political independence through Ghana. The final stage is Liberty from Poverty, economic proseprity, which shall come through Nigeria.

      Therefore, Africa needs a new vision that comprises of Spiritual, Educational and Economic Development, indeed Liberty from Death, Liberty from Slavery, and Liberty from Poverty.

      I call it the New World 137731 Liberty Vision.

      1 Purpose: Unity with God, unity with man & unity with self;

      3 Commissions: Preach the Lord of Liberty, Teach the Law of Liberty & Heal the Land of Liberty;

      7 Tenets: God in Government, Education, Family, Faith, Deed & Lifestyle;

      7 Pillars: Sell Hope, Build Faith, Teach Love, Inspire Purpose, Develop Character, Impart Knowledge & Provide Opportunity;

      3 Missions: Community, Country & Continent;

      1 Foundation: Word of God as Building, Establishing & Living Manual.

      That's the new Africa that is on the rise! A new Africa of Real Leaders of men and women whose lives are invaded by the Spirit of God, and characters framed by the Word of God, who understand that government is a ministry of God to serve humanity. Men and women who will see all Africans as God's people, regardless of religious subscription, and lead them to the promise land of unity, liberty and peace with their heads, stand with them with their hearts, stand behind them with their hands, and stand before them with their faith.

      To prove to you what this vision of God in government, God in Business, God in Education, God in Family, God in Faith, God in Deed, and God in Lifestyle, can accomplish for a people, read about Bishop David Oyedepo and Canaan Land

      If one man can turn an evil forest into a first-class city of over 50,000 worshippers and 6,000 university students, imagine what a nation can do if her people fully turn to their Creator and let His Spirit invade their lives and His Word frame their character to conduct the Love, Light and Power of God in the earth.

      That's my dream for the new Continent of Africa, a new continent of Real Leaders in Government, Real Integrity in Business, Real Knowledge in Education, Real Love in Family, Real Hope in Faith, Real Service in Deed, and Real Moral in Lifestyle.

    • profile image

      IDDI 7 years ago

      The only thing that makes me happy is that most white also like Africans and can see that they pray for the rise of Africa LETS JOIN HAND AND PRAY TOGETHER TO THE ALMIGHTY GOD

    • Neil Ashworth profile image

      George Poe 7 years ago from United Kingdom

      Very good hub.

    • Coolbreezing profile image

      James Dubreze 7 years ago from New York, New York

      Hey! DR. O

      thanks for your comment. I hope to see the day when all the countries in Africa becomes one.

      And as for you snow, thanks for the complement, but can't take on your challenge as of now. I must say it's an interesting issue - and yes it can work. To proposed that it won't is the same as saying that Africans won't unite even for the benefit of their own interest.

      If the interest is beneficial to all Africans across the continent then why not. But I know it is easy said than done. Yes it's not going to be an easy task but it's possible. However, i know that the answer you're looking for demand a longer explanation than i have offered. However, you should keep in mind that there are other forces that may want to prevent an idea as such from occurring. As we know, where ever there are natural resources, corruption exist. Well, in that sense if the leaders of Africa can manage to reduce the influence of those who corrupt - The united nations of Africa would then be one step behind. Thanks for your comment ..

    • profile image

      snow_white88 7 years ago

      i find it interesting that you think a "united nations of africa" (united states of Africa as we refer to it) is the solution. mmmm....a topic of real debate... i wonder if you would like to share a little bit more on the issue:- ) . on the question of how africa came about to be the poorest of all can be a long explanation but in summery it all lies within history of colonisation. decolonisation may have taken place but only politically... neo-colonialism still thrives on the soils of Africa. look out for my next hub...I will brush on this very emotive topic.

      fantastic hub!


    • profile image

      Getinet 7 years ago

      I am Ethiopian and working in government organization. any one who is intersted to invest here,I can facilatate any procedures

    • Dr. O profile image

      Dr. O 7 years ago

      Good analysis. We forget that it took USA 100 years to come to grips with the idea of a constitutional union even though the constitution had been written in 1787. The idea of independence in Africa is just alittle over 40 years old. So it is quite a young one. The first generation of leaders of independence are finally dying off. Which means, it will be the third generation leaders who will have the courage and the knowledge to understand that Africa united is the only solution to the worsening conditions of our people. Wait for it, it is on the horizon. It takes time.

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      dino 8 years ago

      africa can make it am sure

    • profile image

      SHASHANK SHEKHAR 8 years ago

      hi great i wish to invest money at africa. write down the deatils

    • Coolbreezing profile image

      James Dubreze 9 years ago from New York, New York

      Bkcreative thanks for the respond. it's good to konw that some of us are still conscious about the current state of Africa but i must reject your last statement. "interesting too how only a man with African roots can get us out of this mess" those of us who depends on one leader to rescuer us are living a false reality. Obama depends on us to make his leadership worth whild it is not the other way around.  If we want to save Africa from mal nutrition, poverty we the people must do something about it. That include you, me, all of us,  Africans, Europeans some of them do care and any others who wants to help.

    • BkCreative profile image

      BkCreative 9 years ago from Brooklyn, New York City

      Yes, it is time for Africa to reclaim her rightful place in the world. China has enough sense to look towards the Motherland. We don't in the US/West because we have always prefered to steal all the natural resources. Now that we can't so easily - we have totally crashed and burned and entered a depression - pretending it is a recession.

      As an educator it took us a long time to finally have (somewhat) accurate history books.

      Interesting too how only a man with African roots can get us out of this mess.

      Spending time in Senegal was the best time of my life.

      Thanks for writing this!

    • Coolbreezing profile image

      James Dubreze 9 years ago from New York, New York

      Thanks Juliet have fun in Jamaica ...are you in vacation or you live there.

    • Juliet Christie profile image

      Juliet Christie Murray 9 years ago from Sandy Bay Jamaica

      I am way over in Jamaica but what you are saying is familiar.Very educational

    • Coolbreezing profile image

      James Dubreze 9 years ago from New York, New York

      Thanks buddy, 

      Since you’re closer to the movement than I, you can almost feel the door being revolved.

      Well, my friend you’re quit right, Africa will rise once again because if it’s must be, it’s completely up to us.

    • Sufidreamer profile image

      Sufidreamer 9 years ago from Sparti, Greece

      Great Hub, Old Friend.

      I have the impression that one day, Africa is going to wake up and realise that it is strong. Millions of well educated African graduates and entrepreneurs are slowly turning the continent around - small investors are the driving force behind any economy. Whilst there is alot of difference between Berbers and Zulus, for example, 'African' is becoming a proud identity.

      If this part of Greece starts becoming like the rest of Europe/North America, Ethiopia may be the next port of call. As well as a good investment, it has some wonderful history.

      Thanks for the insight!