Chicago, IL (PRWEB) March 14, 2011
Experts view Africa as the last chapter in the book of global economic development. In the midst of the global financial crisis that began in 2007, John H. Christy of Forbes reported that Africa was the “last investment frontier”. This viewpoint was supported by other experts including Elison Elliot of the Foreign Policy Blogs Network, Assif Shameen of The Edge Singapore, and Philip Scott of This is Money. If Africa is the last investment frontier, then investors have saved the best for last—that is, the best of human nature.
Realizing a return on investment can be good for people and at the same time good for business.
This philosophy is what guides the United Nations Global Compact—“a strategic policy initiative for businesses that are committed to aligning their operations and strategies with universally accepted principles in the areas of human rights, labor, environment and anti-corruption”. The UN Global Compact features some of the world’s most successful companies, organizations, and investors, representing more than 8,000 participants, including over 5300 businesses in 130 countries around the world.
Successful investors understand that there is no fixed amount of wealth in the world. Investors create wealth by getting people something that they want, whether that’s in a developed market, emerging market, or frontier market. In the case of Africa, the least economically developed continent, wealth can be created not only by getting people something that they want but by getting people something that they need.
Africa is a big, diverse continent but investors can apply certain tools to classify each country in Africa based on the country’s return-on-investment potential. For example, a 2010 report by McKinsey & Company outlined a 4-part framework for strategizing investment opportunities in Africa. The framework placed each African country in one of four categories based on level of economic advancement from most advanced to least advanced: Diversified Economies (e.g. South Africa, Egypt, Morocco, Tunisia); Oil Exporters (e.g. Nigeria, Angola, Algeria); Transition Economies (e.g. Ghana, Kenya, Senegal); and Pre-Transition Economies (e.g. Ethiopia, Congo, Mali).
A country-specific approach to investing in Africa goes beyond a system of classification. Some experts now believe that such an approach is an innovative way to identify a country's local needs. Once identified, these local needs can be addressed by good deeds which can then lead to good returns for investors.
The list of the 52 reasons to invest in Africa prepared by Chuki Obiyo of MyAfricanPlan.com employs a country-specific approach. Each country of focus is discussed in a way that showcases the country’s unique investment opportunities. Some highlights of the countries on the list are as follows:
Reason # 21 Nigeria, Africa’s most populated country as of Jan. 2011, has a fast growing financial sector...
Reason # 23: South Africa, Africa’s largest economy as of 2010, offers attractive investments in real estate and land properties...
Reason # 25: Ethiopia, Africa’s oldest independent country according to the BBC, offers significant tax incentives for import of investment capital goods...
Reason # 27: Despite the revolution in Egypt (the removal of President Hosni Mubarak in Feb. 2011), the country still maintains its strategic location at the intersection of Africa, the Middle East, and the Mediterranean region. This gives investors access to key global markets from one location. Ahmed Fattouh, an Egyptian-American investor and chief executive of hedge fund and private equity firm Globalist Capital Management, believes that Egypt’s recent political development can lead to renewed respect for the rule of law. For more information, investors can access the rest of the list at http://MyAfricanPlan.com.