Notwithstanding the past-alleged stereotypes about Africa as a landmass of turmoil, war and disease, 2017 is the Africa’s year to shine. Africa is the world’s second largest continent after Asia hording the seven first growing economies in the whole world. Also, the continent is appealing as the most looked-for destination for investments. Regarding tourism, Africa is a unique tourism destination offering the unbeaten kind of experiences to travelers from all over the world. The continent is rich in diversity including the world’s rare mountain gorillas, which make it a dream destination for every traveler.
Conversely, despite the rapid growth, Africa has been hindered by global financial crisis caused by low commodity prices that have continued to impede growth besides the expanded decelerations to lows not seen since the 2009. More still, in 2015 the continent faced a drop down in the gross domestic product from 4.5% in 2014 to 3.0% in 2015, which greatly affected the economy.
However, despite the drawbacks, Africa is anticipated to rebound back this year of 2017. The present environment in Africa associated with private sector offering increased investments has helped the economy to flourish despite the falling commodity price in market headlines. Importantly still, the political reforms have helped to thrive these reforms.
Interestingly, the numbers of travelers to Africa increase day-by-day giving hope for the better Africa. The continent is blessed with unique attractions some of which are not found else where in the whole world. Gorilla trekking in Africa is done in the topical rain forest of Uganda, Rwanda and the Democratic Republic of Congo, which make a safari to Africa incomparable.
More still, wildebeest migration in Tanzania attracts many travelers from all over the world. Besides wild animals, Africa shelter the most attractive volcanoes in the world which are Mt Nyiragongo with the largest lava lake in the whole world along side Mt Nyamuragira all situated in the Democratic Republic of Congo. Hence, basing on the increased tourist arrivals to Africa each year, 2017 is believed to attract many more hence Africa’s year to shine.
Additionally, Africa’s increased population growth rate, rapid urbanization and the increased mobility have rapidly changed the business landscape hence a grown demand for African made products and services. Also, the strong interconnectedness and a feel for pan Africanism has brought much inspiration for businesses operating in the region. Africa’s principal coalition has been established by the public sector, which could culminate in a free trade area, spanning cape to Cairo. This is an assurance that Africa is the next great investment destination for 2017.
Likewise, agri-business that is perpetually the epicenter of Africa’s growth is an ideal example. Of recent, Africa saw a flow of innovations, which have in-turn, accelerated agricultural productivity. The lately put platforms provide farmers with data regarding commodity prices, the available buyers and sellers as well as assistance on the best practices in harvesting and disease controlling.
Similarly, the upraised innovations by Africans guarantees advancement and potential of Africa’s people, their aptitude to identify contained solutions for growth as well as the economic growth extensively. The impending trends compelling large-scale private sector growth on the continent not only figure out strategies for prevailing companies but as well influence the appetite and venture projects across Africa.
Meanwhile, it’s after along time of trading un processed agricultural commodities that processing and value addition has been seen as a solution. The need to process raw agricultural produce instead of exporting unprocessed agricultural commodities has been finally realized after along time of unprofitable trade.
In addition, after discovering that over 80% of the global food goes for sorting, cleaning and packaging fruits and vegetables, a need to process these products was appreciated. These stipulate opportunities for the private sector to expand their commercial activities hence retrieving higher value markets for either domestic consumers or exports.
Further more, dispensation and value adding not only provide employment at all levels but considerably adjust the economic landscape of countries. Kenya is the best example in exporting value of fresh vegetables. Kenya decided to incorporate value added tasks such as cleaning, packaging and freezing products, which has in turn earned a country approximately 250%.
Additionally, the collective forces between Africa’s cotton and the apparel value chain have helped to assimilate the global textile supply chain. The best example is South Africa where the aid by the trade foundation amalgamated with African cotton and textile industries federation to endorse justifiable cotton and textile industry in sub-Saharan Africa. The major objective for this partnership was to upsurge productivity, effectiveness and the maintainable cotton production in the country.
With Africa having the fastest growing populations and an exploding middle class with more disposable income, there is great assurance of increased demanded for fast moving consumer goods (FMCG). These involve electronics, foods and hygiene products, all which are currently incorporated. To address this, various African entrepreneurs have started producing local goods them selves. They are presently using locally available materials such as edible oils, soaps, scholl uniforms and also household cleaning products. As a result, Africa’s first moving consumer goods sector provide plenty of opportunities which is hoped to be the next “gold rush”. This has been witnessed by local companies such as tongaat hulett and del monte Kenya limited along side other foreign conglomerates like uniler and procter and gamble among others.
Importantly still, African owned and run businesses understand the purchasing decisions of the world’s more than five billion low-income earners. This provides Africa with a wide competitive advantage compared to other continents.
Presently, the enlarged market linkages have expanded African export market, partnerships support, and consultation, information sharing and tailored training for export trading. African governments and mutual donors have encouraged export, which has allowed companies to further diversify their operations and reap financial benefits. This was after along time when Africa would not meet global export requirements. Also, Africa is expected to become the breadbasket of the world having a growing population and an imminent danger of global food shortages. Africa’s exports are therefore hoped to become the extremely important in the growth of Africa’s private sector in 2017 and the coming years.
Conclusively therefore, 2017 is a shining year for Africa. This is a great advantage for all people in businesses one of the most exciting and dynamic regions in the world.