Africa for Business: A Full Basket Case

Before, most business enthusiast always say that any investment ideas won't take effect in Africa. But somebody said, "It's not where you are, it is what you do." This is a line coined by Arnold Ekpe, CEO of an African bank called Ecobank. Ecobank is found in Lome, Togo, a country in Africa. The country is described as small, poor and chaotic, just like a typical African country.

Now, since 2006, the Ecobank in Togo has expanded opening 200 branches in the entire continent and planning to set up more banks in three countries. Their annual profits were up by 47%, $191 million in 2007, and 32% just in the third quarter of 2008 with $104 million. It is evident that we are facing a historic crisis. Banking business tycoons all over the world are struggling. But despite this, Togo, and most of the African countries are the best-performing countries, all because of their economic growth. This news is a proof that Africa is more focused on economical development to help their people and invite more business investors.

20th century is the age of transformation for the Dark Continent. From a place which is very dependent on aids from other nations, now, they are perceived as a better business destination. War has depreciated, Democracy is making its way. According to Organization for Economic Cooperation and Development, foreign investments continue to overtake foreign aid. In 2006, foreign investment reached $48 billion. Experts say that this is all because of the private sector. IMF puts Africa's average annual growth for 2004 to 2008 at more than 6%, this gain is a lot better than any developed economy. A prediction even concluded that African countries will be able to overcome the global recession.

Africans living in poverty was lessened. There are more works for the people. Percentage of people who earns $1.25 or less a day has declined from 59% to 51%.

Africa now offers the world's highest rate of return on investment. The continent used to be the poorest performing region in the world economy, now, they are outstanding. The transition happened since the last few years. It opened opportunities for businessmen investing in Africa to grow. The continent is now a promising business destination.

Instead of agonizing over Africa's poverty, some superpower countries are bemused by its resources. Like China, they have delegates on different parts of the region for specific type of business. They make money from mining copper in Zambia, cobalt in Congo and tapping oil in Angola. The country of China is seeing their relationship with Africa as a win-win solution for economic crisis.

Investing in Africa is just another form of help. Doing business there would be beneficial to both parties. Africa is now a basket case filled with lots of opportunities, all up for grabs. View Africa's condition as a chance for good trade not just a need for aid. Same thing goes either of the two, they both create development.

Strategic Planning Consultants at FutureAfrica provide business consulting services you need to insure your business plan is align with the visions and aims of your organization, company or business.