Africa is not the final frontier we think it is. The big emerging markets competing with Africa are Russia, Brazil and Turkey, and all three are more stable than most African countries.
This is the view of Louise Robinson, Database 360 sales director, who points out that parts of emerging Asia, the Middle East and Eastern Europe are as attractive to investors as Africa, and that local business will need to add value as well as provide a compelling offering if they want to be noticed.
“Traditionally, investors have seen emerging economies as markets that have a great potential for profit, although the downside is that there is typically more risk [involved] than [when] investing in developed nations. So with this much choice, factors like political and economic stability become even more important in investment decisions,” explains Robinson.
“In addition, their growing infrastructures and business-friendly legislation make them good investment destinations. The US, for example, would look to Brazil first for investment opportunities as a result of a combination of these factors and geographic proximity.”
Robinson advises companies looking to attract investors to work hard to provide extra value, adding it's imperative that companies looking to invest understand their potential marketplaces. “Do the research. Do the homework. The easiest way to do this is to get an expert in to do it for you.”
The overriding message for 2012, then, is to grab the opportunities when they present themselves. “Much of the developing world will continue to see relatively strong growth, providing an opportunity for forward-looking African enterprises,” concludes Robinson.
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