Africa not yet as compelling as Asia-Pacific – Ford CFO

Africa may be growing quickly, but it still offers less opportunities than more robust emerging markets such as China and India, the CFO of U.S. car maker Ford Motor Company said on Tuesday.

With an an average economic growth rate of 4 percent, Africa is seen as an increasingly attractive investment target for major multi-nationals.

U.S. retailer Wal-Mart recently paid $2.4 billion for a controlling stake in South Africa’s Massmart, citing room for growth on the continent, where disposable incomes are rising quickly.

But Ford’s chief financial officer, Lewis Booth, who is currently on a visit to South Africa, said the African growth story may need some time.

“We are saying in Africa … GDP per capita is still quite stressed. We are not expecting dramatic industry growth,” Booth told reporters on a visit to Ford’s plant in Pretoria.

Ford, which is working to increase sales by 50 percent by the 2015, is betting more on Asian countries such as China and India for growth, he said.

“In this decade the growth will be dominated by Asia-Pacific countries and perhaps Russia and Brazil.

Source: Reuters