Business
The allure of doing business in Africa
It is also expected to increase the level of intra-African trade to 30 per cent. Companies that are entrenched in Africa at the time when the TFTA is ratified – hopefully by 2017 – will be in a very advantageous position to do business in Africa.
Other risks in the rest of Africa include the lack of suitable real estate‚ currency volatility and corruption. These risks are known risks, however, and can be managed. Foreign companies have adopted entry strategies such as partnerships to get access to local knowledge and networks.
Africa is the last investment frontier left in the world. There are risks involved, but the quantum of opportunities far outweighs them. The reality is that the investor must understand Africa, identify the risks and take the necessary steps to mitigate them. For the savvy investor, the returns will be huge.
Johan Burger is a lecturer at the Nanyang Business School in Singapore, and the Director of the recently established Nanyang Technological University-Singapore Business Federation Center for African Studies.
The original version of this article was published in the Today Online Magazine.
