The African workforce is becoming increasingly educated. It now represents a real asset for the knowledge-based economy of the future. Tech savvy individuals in countries such as South Africa can be an important resource for Western investors at a fraction of the cost of similar employees in the Western world.
Expanding Consumer Markets
The African continent currently has a population of more than 1 billion people and that number will double in the next 50 years. While it’s true many are still living in substandard conditions, Chinese investment is slowly changing that. If Western countries don’t start to match these investments, they could find themselves on the outside looking in.
Using Local Experts to Enter Markets
Nigeria alone is expected to surpass the American population by 2050. This is a country with significant natural resources and the potential to become a future African powerhouse. A failure to invest in such a market would be a costly error.
The problem is red tape in a country like Nigeria can be difficult to navigate. That’s why the use of local experts on the ground such as Shikana Law Group of Tanzania is a good idea. By partnering with local partners such as Shikana, Western firms can easily navigate regulatory hurdles and local customs.
African Markets Growth Potential
If Western nations don’t use local partners to continue to expand their markets in Africa, they will soon run out of growth opportunities. North America and Europe are mature markets with little opportunity for growth. There are some opportunities for expansion in Asia and Latin America, but the real promise is in Africa. The African continent is catching up with the world at a rapid pace.
Global Economic Integration Vs Protectionism
Hiding behind protectionist policies is short sited at best. It may actually harm western economies in the long run. The global economy has made nation states interdependent. There is no going back to the protectionist policies of the past.
