As investment pours into Africa, the continent is experiencing rapid growth in real GDP. In fact, growth will exceed 5% per year in many areas of the continent in the coming years. These are some of the highest growth figures in the world.
It’s Important to be on the Ground Early
With such rapid growth, it’s important for foreign investors to hit the ground running. Unfortunately, Western investors are lagging behind their Chinese counterparts. This is largely due to traditionally negative views on African economic potential.
By investing in newly emerging markets Chinese investors believe they’ll have the chance to shape them in their favor. Western investors would be wise to adopt a similar strategy. Significant investment in Africa now will pay off in the long-term for both the countries making the investment as well as the countries benefiting from the investment.
African Countries More Educated and Sophisticated
The traditional Western belief that African countries such as Ethiopia are unstable and therefore risky investments no longer applies. This country, as well as many other African nations, has experienced consistent and significant growth in recent years.
