I believe this continent is truly alive with possibilities and is just waiting for the right people to snatch those opportunities
Workcited: TATA holding group site
The flow of foreign direct investment into Africa raised by 28 per cent in 1999, reaching $10, the UN Conference on Trade and Development (UNCTAD) estimates in its World Investment Report, released in October. On a global scale, however, this “remained quite modest,” representing 5 per cent of total FDI into all developing countries and lagging far behind the $106 reported for developing countries in Asia.
Further limiting the impact of this investment was its narrow concentration, with some 70 per cent going to five countries: Angola ($1.8), Egypt ($1.5), Nigeria ($1.4), South Africa ($1.38) and Morocco ($847). Deregulation and privatization drew some funds into telecommunications, but transnational corporations were still primarily focused on oil and minerals. It has been noted that such investment in the extraction of natural resources, while profitable for the investing corporations does little to create significant numbers of jobs or promote broader national economic development. The main challenge would be to make African companies aware of that so as handle the situation and make their continent as well as its inhabitants benefit from it. But how and when will they feel the trigger…?
Most of the companies that are implemented in Africa succeed to make their way on the market. Among others, the Indian transport group TATA, can be cited as a relevant example of success in Africa.
From its first attempt steps in 1977, the Tata Group’s African initiative has gathered momentum. Its footprint now extends to nine countries (with two more slated to join the list this year) and ‘Tata’ has become a well-known and respected brand in Africa. Tata Africa is constantly searching for strategic plans for further expansion and growth
Still, the sheer size of the African continent is a challenge as each of the African countries is different — in their economy, culture and environment for investment.
When they first came here in 1977, they had to struggle to get a foothold. That has changed over the past couple of years. Today, TATA is a known brand and have built confidence in their customers.
They have succeeded in establishing their businesses in the area of automobiles, engineering service and telecom, and are continuously exploring new business opportunities. However, they continue to face challenges of a different kind today as they need to seek for new and relevant areas of investment. Mining is one of the main businesses in Africa, but it is a difficult sector to enter for the Tata as it is dominated by large global corporations which have been here long before Tata Africa came into being.
In addition to that, TATA is searching for other market opportunities such as in telecom services in South Africa. According to them, the prospects of the growth in telecom sector are positive enough to, along with local companies, invest in telecommunications.
Further to that, the group is evolving initiatives for skill development by awarding scholarships as well as supporting entrepreneurs who can use their skills to eam a live hood.
As these figures show, the TATA group is committed to a long-term relationship with Africa and sees their investments growing steadily in the future.
Africa has been very good to the Tata Group and has helped them to build a strong bond with people and companies in the different countries that they are in.
With all the resources it is disposing of, Africa is land of wealth. However, its inhabitants struggle to exploit them or even if they succeed to do so, cannot make it sustainable. Most of the times African countries call upon foreign companies to explore those resources. As a matter of fact, it is those companies that first benefit from this partnership in addition to the cheap labour it is providing them with. However, who of the continent and those companies is benefiting the most from it?
Seen that way, it is quite understandable that more and more foreign companies settle in Africa. The cheap labour they have and all those resources constitute for them a real competitive advantage comparing to those set in Europe. Furthermore, it has been shown that world companies established in Africa need less than two years to recover what they have invested when creating their enterprise.
Africa is then really attractive to foreign companies. Even though they do help Africans develop their countries, it is somehow as if they were abusing them. The continent does not always feel the good side of their presence, given that they are the ones who mostly benefit from it.
Africa has always been considered as a continent that does produce much and as the poorest. That assertion comes from the fact that African people are not aware of all the hidden wealth that their continent is overflowing with and do not have the means to exploit.
Indeed, Africa possesses a lot of unexploited natural resources as well as human resources. More than the half of the African population is young. That grants the continent a high rate of labour that foreign companies need to work for them.
Moreover, Africa also has rich subsoil and provides the world with precious raw materials as well as natural resources. Thereby, countries such as Sudan and Nigeria among others are now benefiting from the unprecedented oil raise. Their economy is reaching a 5% growth rate when some European countries’ are barely growing.
It is just to say that Africa has, indeed, a lot of resources but just doesn’t know how to exploit them so as to benefit from it.
Africa: fertile ground. That is a subject that could be talked about over and over without finding an outlet. Indeed, we could have a lot of things to say about it.
Africa has been and is still considered as a continent that doesn’t have raw materials. Nevertheless, when looking closer, the continent undeniably possesses a lot of natural resources as well as human resources and raw materials.
In this blog, we will try see throughout what makes of Africa a fertile ground, why it is seen as an el dorado, examples of companies that have succeeded there and eventually what is the issue and next step for Africa and those companies. Enjoy your reading and don’t hesitate to leave comments and suggestions concerning the writing.
Africa’s economy is growing at 5 to 6% a year. Inflation is down. Prices are rising for commodities like oil, copper and gold.
Like all emerging markets, Africa is a risky place to invest but “the perceived risk is greater than the actual risk,” says Tom Gibian, the chief executive of Emerging Capital Partners (ECP), a private equity firm based in Washington, D.C., that focuses on Africa.
The firm has invested more than $1.2 billion in several Africa funds since 1999. It has invested in 48 companies, exited from 18, recouped more than $600 million and posted an average return of three times its initial investment. “The financial performance has been terrific,” Gibian says.
Broadly, though, African companies have been aided by increasing efforts by government leaders to promote capital markets, private investment and trade. “The real news in Africa,” Gibian says, “is that over the last five years, virtually every country, their presidents, and even the leaders of the opposition parties, have gotten on the same page regarding the primacy of the private sector, the need to deregulate, and the importance of attracting foreign investment. Centralized planning, state control of assets and socialistic rhetoric, for the most part, are dead. Market forces have won.”
Source:www.money.cnn.com
More and more foreign companies invest in Africa, but how could that phenomenon be explained? The answer should be found looking closer on the African side.
With nearly 766 million people living on its earth, Africa represents around 13% of the humanity and its population is still growing fast. If the growth rate of the continent remains steady (1, 39%), African population will represent 29% of the humanity in 2100 and Europe only 7, 7%. Africa’s high fertility rate grants the continent a young population. Therefore, along side with Asia, Africa is potentially a big market and a cheap labour provider. Still, most African countries remain underdeveloped and lack infrastructures, manufacturers and services. That handicap then represents great opportunity for the future.
World companies are setting up in Africa, providing with the chance to catch up with the rest of the world. Overall, cheap labour price on the continent will keep on attracting those companies in a difficult globalised market. It is on that path that fabric manufacturers are setting for North Africa for competitive production prices.
Africa is more and more appearing as an Eldora ,do for world investors. The continent is a huge potential market, where manpower is available and is among the cheapest. It also provides the world with precious raw materials but its development is still impended by the lack of transformation industries and infrastructures. The building process demands a lot of capital but also yields high profitability rates. World companies are aware of that fact and won’t miss those opportunities.
1- The experience she thinks have changed her life fo a better, is being the chairperson of the english club. That was the first time she had so much responsibilities. That made her feel more mature, sure of herself, ready to bear consequences but also be more opened towards other people. It really helped her fight her shyness, especially when she was barely capable to talk in front of people and even look someone in the eye for more than 5 seconds.
2- That experience is really strenghening her. More than helping her overcome her fears, it made her develop her self-esteem and be less reserved. It also made her realize that people are not always who we think they are ; she learned to her cost that there’s no one to catch you when you falling or to hear you when you calling. People are always there at the beginning when things are going smoothly but once it gets complicated, you never see them again ! That experience really aroused her sense of responsibily and strenghened her will to be a good manager.
3- Her enrolment to ISM is mainly due to the fact that her brother studied here. He soon found a job after his master, what made her Dad think that ISM would be a good school for her. Besides that, its renown just reinforced his opinion.
4- She will know that it is a success once she gets the job she wants and be able to come through problems she might face in an entreprise thanks to the experience she has gained from ISM.
5- In her dream, she was in an empty area, with nothing around, It really seemed weird, and I never felt that way before! It was really kind of scary though.
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