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Investing in 2nd largest continent

Since the first colonizers started to explore Africa, it was clear that this continent has a lot more to offer than it would seem at first. With its land rich in gold and diamonds, fertile soil and abundant farm animal life, this world gave the world a new energy to move forward and drive the wheels of progress into the future. As the time went by, it seems as if the world has forgotten about Africa and everything that continent really had to offer to the world. The second largest continent in the world became all but invisible to everyone.

Nevertheless, the scales of time are once more shifting, and Africa is again a strong investment opportunity for everyone.The Asian countries, China most of all, were the first to notice African appeal and sent their investors to start building the foundations. Chinese companies started building roads and other important infrastructural objects. They invested in telecommunications and housing, pouring billions of US dollars into African economy. The governments of many African nations decided to call up to other foreign investors, as they did not want to rely only on Chinese investments. They have realized that open market is essential for their economic success, and started to create an open system, similar to that in the EU, with goods and services being shared among the nations freely. This is important for all those who think about investing in Africa, as they can be certain that their product will be available throughout the content.

The population in Africa is significantly increasing and the number of educated youth is growing larger each year. Each of these people are in need for housing and jobs, both scarce for the time being. What’s more important is that many educated people from abroad are coming back to their homes in Nigeria, Angola and other countries, bringing back their western way of life as well. This means that a new generation of society is building within these countries. Society with consumer and work habits developed in the West. By logic, this represents a substantial potential for brand-driven strategies, not to mention a scaling opportunity for companies related to food industry. Food industry has a chance just by looking at the fact that estimated 50% of African population is going to live in the cities by 2050.

With food in mind, it is important to think about roads and transport development. Since these areas are not fully covered, more than 50% of food reaches its destination in spoiled condition. This galvanizes the need for more roads and better transport, which can be a major scaling chance for many western companies if they manage to react on time. One should learn on past examples such as Dubai. This city was developed out of thin air and the rule was that the companies that came in first had the best opportunity to grow. The same principle could apply to African nations, also. In order to attract foreign investors, the governments have beneficiated local commodities. Minerals, cotton, coffee, etc. are heavily beneficiated, allowing companies to process them rather than exporting in raw condition.

To summarize, Africa offers a vast land for agriculture, rare commodities, educated youth, infrastructural, housing and telecommunication investment potential. The market is wide open and everyone has a chance in taking a piece of the pie.

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