People’s Perception of African Businesses for 2010
Will Africa retain the growth it gain from the previous years this 2010? This is a question that is asked by many business people who are thinking of investing in Africa, and even those who were already there. This is prior to the growing belief that the Black Continent is not consistent with what’s happening their economic gains. But looking at the statistics, it shows otherwise. 2009 had been a very bright year for many African countries. And many countries from other continents are thinking that it will continue this year. This is a statement supported by a survey conducted by Africa Practice. It is a strategic communications consultancy with a network of offices spread all across the continent.
The survey was conducted among 37 executives from telecoms, beverages, banking, media, private equity and mining businesses. These companies have their investment in different African countries. They have been actively residing in Australia for years now and has the most credible answers that the survey requires.
When asked what is going to be their biggest challenge for their business in 2010, majority said talent and credit with 35% and 30% respectively. Others answered infrastructure(9%), political instability(5%), political/legal infrastructure(5%). Nobody answered crime and security.
68 percent of them said they are thinking of expanding significantly their businesses as part of the investment plan for the year of the tiger. 27% told the survey that they only want to expand slightly while only 5% of the respondents said that they will maintain their existing business levels.
When it comes to Foreign Direct Investment (FDI), they expect it to grow where in 83% of them think that most of it will come from China. 11 percent said Europe will bring that one up. Only 3 percent believed that Asia excl China will make it happen. No one answered there will be a decrease significantly although there is 3 percent who said that it will reduce slightly.
FIF World Cup is the next big thing for the African continent, when asked about it, here is their views. The even will benefit them but mainly South Africa, 54 percent. But the number saying that it will benefit most African countries is also high with 27 percent. While 19 percent said that it won’t help them at all, it won’t open too much business opportunities.
And aside from FIFA World Cup, business investors also see technology investments, improvement in quality of life and reduced cost of communication as one of the significant developments in the region, with 56%. They are also anticipating development to elections that are going to happen in Central African Republic, Ethiopia, Guinea, Sudan and Tanzania.
Overall, investors perception of 2010 is positive. They can see more growth for this year than in 2009. They thought African is ahead of something greater. But no matter what the numbers show, it is still our own understanding of doing business in Africa that will decide what would be 2010 for us. For as long as we can keep up with all the business transformation, if necessary, we will reach the goal that we have been longing for.
