3 reasons why Africa should be on your global expansion radar
If you want to expand your business internationally, Africa should be high on your list. Africa is one of the continents with the most misconceptions, especially among Westerners. Contrary to popular belief, Africa is home to more than 50 developing countries. Africa contains the majority of the world’s natural resources. As a result, it has all the necessary resources to help your brand grow. The economy, education system, and technology have all developed tremendously. On the other hand, more foreign direct investment from expanding companies is needed for the continent to reach its full potential. Africa is worth exploring, although it is not the first continent that comes to mind when considering expansion. This article outlines three reasons why you should consider expanding to Africa.
- Africa is rich in resources: Africa is the richest continent in the world in terms of mineral resources. Many parts of Africa are well supplied with crude oil and precious metals. This means that if your business needs these resources, you don’t need to import them because you already have them in the country you choose. Crude oil, for example, accounts for 96% of Nigeria’s export earnings, while precious stones and precious metals account for 8.2% of Egypt’s export earnings. You may be wondering why a continent endowed with such quality mineral resources is not expanding globally. The main cause is the lack of funding and infrastructure. Despite abundant resources, Africa has not been able to develop for lack of economic investment. However, your business can take full advantage of business opportunities in Africa. The economy would benefit from early investments due to Africa’s resource expansion capacity.
- Growing workforce: Africa’s workforce is young, growing and eager to work. As you probably know, many Africans leave their home countries to explore other countries. It is the result of an unbalanced social system. If African society was politically balanced and the government knew how to invest in the economy, there would be less immigration. Africa now has more than 1.2 billion people. This population is expected to reach 1.7 billion by 2030, implying that Africa will continue to produce people ready to work. It may interest you to know that Africa is the youngest continent, with 60% of its population under 25 years old. Many of these young Africans are looking for work, and when they can’t find it, they try to emigrate. You can expand your business in Africa to take advantage of the continent’s young and growing workforce. There is no doubt that Africa will not face a labor shortage. If you decide to expand your business in Africa, you may need use eLearning translation services to communicate with your employees.
- Need for foreign investors: Without a doubt, Africa needs foreign capital to develop its economy. Although a few companies already have investments in Africa, the continent still needs more investment to reach its full potential. By developing your business in Africa, you can contribute to the economic and infrastructural development of the continent. Despite all the opportunities available, Africa remains one of the least exploited regions in the world. As a result, by expanding your business in Africa, you are not only investing in the economy, but also helping it to grow. The African technology sector is booming and requires foreign investors. Many young Africans are now aware of the opportunities offered by technology. Due to the lack of investment in the technology sector, these young people are looking for alternative ways to present their ideas to foreign investors. Africans are early adopters of new ideas and businesses. As a result, you won’t have to worry about the return on investment.
What you need to know about the government
When considering a global expansion of your business, it is crucial to consider how the government treats foreign investors. Many African countries welcome the idea of foreign investors investing there. Nigeria is a good example.
Every government wants to see its country achieve its full potential, and they wouldn’t turn down the opportunity to do so if it meant bringing in foreign investors. However, if you want to expand your business in African countries, you must comply with all applicable laws and regulations for starting a business.
Your business has many chances to grow in Africa. You won’t be able to see this unless you first take your time to carefully study the continent. Far from all the myths, Africa has a variety of material and human resources that you can use for the benefit of expanding your business. Nevertheless, you will see that investing in Africa is not a bad idea when considering the aforementioned factors.