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Africa is the next big thing

Africa is poised for an economic revolution. Six of the world’s 10 fastest growing economies are in Africa. Africa’s mobile phone growth rate is the highest in the world. The continent is making significant strides towards greater stability and improved governance, and high returns on investments are rapidly fuelling increased interest in Africa. For instance, Rwanda is now one of the most progressive developing nations in the world. Botswana, Angola and Tanzania are just some of the countries, growing at an impressive high GDP rate. Investing in a country like Angola, one is almost assured of making triple profits. Africa, with 10 to 15 years of sustained economic growth, profitability levels and rates of return are among the highest in the world. There is also a remarkable strong growth in intra-African investment, led by South Africa, Nigeria and Kenya. East Africa is touted as the hottest frontiers in the world from investment in oil and gas explorations. Africa’s mineral wealth and improved investment conditions are driving continued interest from the largest mining companies such as Turrow Oil (UK), Africa Oil (Canada), Pancontinental (Australia) China National Offshore Oil Corporation (China), among other companies from Brazil and India. This focus of investment in the mineral sector will bring about exponential growth and substantial improvement in the quality of life in this region. Westerners and Easterners are investing huge amounts in Africa. Africa’s economies and opportunities for investments are expanding and to some extent in the democratization front. Companies such as Safaricom and Equity are making it big. Safaricom, a mobile phone company targeted the poor masses and still managed to grow its base and revenue. Today, it is one of the most successful companies in Kenya and Africa in general. Safaricom has another product, the innovative mobile money system dubbed Mpesa (mobile money) that allows one with a mobile phone to transfer cash from one person to another. The system has become so successful that it is now being copied all over the world. Equity Bank is another very profitable bank that started serving the masses by providing inexpensive, hassle free banking facilities. It has targeted the poor in the villages, markets and slums. It now has a foot print in other East African Countries. The economic blocs such as EAC, SADC, ECOWAS and COMESA are facilitating opening up of economies in Africa. A report by the World Bank indicates that nearly half of the continent’s countries have attained middle income status. Projections are that many countries will grow at more than five percent by the end of 2013. Sub-Saharan Africa is also projected to become a hub of global economic growth. Take a capital like Nairobi, in Kenya that has attracted big companies such as IBM, HSBC, the International banking group, and Visa International, Nokia Siemens who relocated from Dubai to Nairobi, Cisco, the largest maker of network equipment and General Electric, Microsoft East and Southern Africa, Nestle Equatorial African Region Communication through the optic fibre cables connecting Kenya to the rest of the world is one of the factors encouraging companies to invest in Kenya, thus creating a robust telecommunications infrastructure. Information Telecommunication Technology industry, for instance has been growing rapidly driven by mobile and internet infrastructure, availability of computers and training institutions. Nairobi is also an African central hub as it has an international airport and a major airline offering connections to many destinations in Africa and the rest of the world. Opportunities for comfortable living for expatriates contribute to many companies decision to set base in Kenya. Low political risk, dynamic private sector as well as well developed modern economy are other factors attracting global giants into Kenya. Kenya also has a well educated population, meaning there is availability of required skills to drive industries. All these positive attributes could explain why Kenya has beaten continental giants such as Nigeria, South Africa and Morocco in the rate of growth of new foreign investments. In a short while, Kenya has attracted Foreign Direct Investments (FDI) earning about Sh425 billion, a 77% increase. Kigali, Rwanda is again a city that is expanding and growing in a well planned manner. Rwanda is one of the most investor friendly countries in the world, placed at number five. Rwanda has the best investment climate with zero tolerance to corruption. Setting up business in Rwanda is now easier and faster compared to many other countries. Rwanda’s economy has grown 10 times since 1994. The country also produces high grade Arabica coffee as well as fine tea which is among the top five in the world. According to Doing Business in East Africa 2012, a report by the World Bank Group, East African Community has greatly reduced the cost of doing business. The procedures have been slashed from 12 to 10, and the cost dropped from 144 to 55. EAC member states have implemented 11 trade facilitation reforms in areas such electronic submission of documents, risk management systems for inspections and joint border cooperation.