Business and Finance
Business in Africa to Remain Profitable in 2010
2010 would still be a great time to Invest in Africa. Moreover, investments will be fruitful all throughout the year. This is a forecast released by Africa Practice, late days of December 2009. According to a business survey they conducted, business leaders are optimistic for 2010. More than 95% of respondents said that they are expecting to expand their businesses on the upcoming year.
Africa Practice is no new to this kind of survey. It is actually a strategic communications consultancy with a network of branches all across the continent. They are experienced in developing business and strategy for sustainability in Africa.
This report is seen a support to the belief that what was Africa in the past few years, especially during recession, will continue and will stay beneficial to Africans and investors. Quoted from the report, “All the respondents (100%) said they anticipated foreign direct investment (FDI) to increase in 2010, with the majority expected to come from China,” the report indicated. This represents a much-improved outlook when compared to last year’s survey in which 69% of respondents predicted a reduction in FDI in-flows.”
These positive answers were brought about by the faith that Africa will pick up itself where it left off in 2009. The continent is becoming the focal point for many countries that are lacking resources. Adding to this is the upcoming FIFA World Cup. South Africa will be the one to host soccer's largest league. And of course, it is not just South Africa who will gain from this, the neighboring countries will be dragged into this opportunity. Travel and tourism is more likely the sector that will have more gain form FIFA World Cup. The said event will open up more growth and business opportunities for many people. The Black Continent will served as the center of the earth for 2010. The attention will focus mainly on the world's poorest continent. And eventually, the monicker will turn into something more pleasant, both for Africans and other people.
But when asked what will be the challenge that this growth may face, although in just a small percentage, respondents answered access to credit and availability of talent, 35% and 30% respectively. Physical infrastructure, legislative environment, advancement in technological infrastructure were also cited as barriers for further growth. Although this has been all addressed in some small ways, many are still in doubt because other investors have not yet recovered from the blows of financial crisis. If investment in such sectors will be halted, development will also be affected.
The other challenge which is the availability of talent, was also mentioned as a problem from previous findings wherein 31% of the respondents answered the same. This challenge is about the lack of business management skills which is usually the cause of downfall of many businesses in Africa.