Viability of Business in Africa
Sep 21 2007, 07:11 AMWith all its financial troubles and infrastructural challenges, how viable is it for European / American conglemorates, to do business in Africa?
Sep 21 2007, 08:20 AMWell obviously, I can see, in my day to day job, that investors are doing business in Africa. Almost all multinational firms are doing business on the Continent.
For instance, in North Africa, Morocco develops PPP (International Port of Tanger Méditerrannée, etc.) and investments in the tourism (Vision 2010). Algeria and Libya have a lot of oil, a lot of foreign currencies and few infrastructures.
In fact, Africa is a rich continent with growth outlook.
Chinese investors are also doing business overthere.
Of course, there are specific risks, notably due to the lack of specific regulations, and the job of the lawyer is to inform its clients and try to preserve, as far as possible, their interest, in such a specific context.
That is a very interesting challenge!
Sep 21 2007, 08:26 AMMany arab investors from the Gulf also invest huge amount of money in important projects in North Africa.
Sep 21 2007, 12:46 PMSo where is the problem then? Yes Regulatory frameworks might be shaky in some countries, but I don't think that would be the majority of countries on the continent, a lot would have fair systems in place. What have those who have tried to do business on the continent, assuming that there is anyone other than Nicolas, found to be the biggest obstacle. Clearly we're (Africans, like me) doing something wrong. Political instability, perhaps? (Again, I think the majority of African countries are now politically stable). What is holding Africa back?
Feb 02 2008, 03:28 PMVelleman, you have started an interesting conversation.
To my opinion, Africa is very viable area for outsiders to invest at the moment. We have seen various move with in Africa and those driven by outsiders to make Africa a viable place for investment. For instance the AU EPA (African Union Economiuc Partnership Agreement) that is one of the moves which aim at strengthening relationship but at the same time act as a move for making Africa a condusive place for investment.
Politicaly, despite some few chaotic fellows, many of Afican countries are stable politicaly, we are now seeing smooth transitions of one government to another, a sign of democracy as well as political will within ourselves to resolve some of the on going conflicts eg. Zimbabwe and DR Congo, Kenya as well.
To my opinion what is holding back africa, are basicaly two things, firstly is corruption with in our leaders which is coupled with selfshness and secondly is massive ignorance and illiterance of may of our people who actualy dont know even how to acces some of their basic rights.
You have to be a member of "African Business Law" in order to reply.