Thankfully Africa is rising and is shaking off the stigmas attached to it, breaking down the mental walls that are limiting. For years Africa has been treated like a single entity despite the fact that it is a vast continent with a billion people. It is strange that no one assumes that the British and the French share one culture or sees Europe as one country.
What’s happening in Africa today can be likened to what happened to the United Arab Emirates since its independence from Britain in 1971. The UAE has grown to be one of the Middle East’s economic centres. The late Sheikh Zayed, ruler of Abu Dhabi and president of the UAE at its inception, was quick to seize on the potential of the oil industry. He oversaw the development of all the emirates and directed oil revenues into healthcare, education and the national infrastructure. Likewise, Africa is full of natural resources, e.g. gas and oil, whose potential can be used to develop infrastructure. Africa can also seize on the foreign investment opportunities.
So who is investing in Africa? Since the global economic downturn several U.S. companies are moving into Africa. To show how broad-based foreign investment is in Africa, here is a sample list compiled by WSI research:
In March 2012, The Gap opened its first store in Johannesburg with two more opening in 2013 (one in Cape Town and another in Pretoria).
Porche operates dealerships in South Africa (selling 800 cars a year), Angola, Ghana and in the midst of the world’s largest concentration of millionaires – Nigeria’s Victoria Island.
Africa is Diageo’s biggest emerging market. 40% of all Guinness brewed and consumed in Africa. Diageo announced last year that it would be expanding into Angola, Mozambique, and DRC. Africa contributes 14% of Diageo’s total net sales and the company paid $225m for Ethiopia’s state-owned brewer Meta Abo.
Heinz operates production facilities in South Africa and Egypt and is making a strong push into Nigeria. The company enjoys 21% sales growth in Africa and 10% growth in South Africa.
Africa is Moneygram’s fastest growing geographic segment due to the huge number of Africans in the diaspora who send money back to the continent to support family or local businesses. The company added nearly 6000 locations in 2011 and now has 267,000 agents in Africa.
GE ELECTRIC Co.
With its first aircraft-leasing office in Ghana for Central and West African airlines, GE has a stronger focus on Africa.
We Africans need to keep rising up and come up with African solutions to African problems. We are well able and capable, what we need is a sense of oneness. Yes we do need foreign investments, but we too must invest on our continent and support our own products. Yes We Can!!!!
Arnold Matimba is a generalist consultant with nearly 20 years hands-on experience in industries such as Telecommunications, Aerospace and Defence, Construction, Retail & Hospitality. Arnold has had exposure to diverse cultures making him highly attuned and aware to clients needs in different regions. Despite having lived and worked in the UK, his desire to promote a positive image of Africa led him to set up Avalanche Consultants Pty Ltd, whose main aim is to offer cross-cultural and consulting services to those keen to do business in Africa. (Twitter @ArnMatimba)