After Asia, is Africa the next place to go?

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In doing business internationally, it is imperative to look ahead than the obvious opportunity. Now with most of the eyes are steering at Asian emerging economies such as India and China, there is other opportunity for company to capture for a longer term. That opportunity names Africa. One of the most supporting evidence for this opportunity is the figure “over the past decade six of the world’s ten fastest-growing countries were African”1. The reason behind the fast growth of these African countries maybe due to a high revenue from natural resources, which becomes rarer and more essential for countries like China, India and Brazil. High population grows is one of the factor that make Africa a promising place to do business. High population can lead to higher commodity consumption. African enthusiasm for technology is another opportunity that US companies should consider to make a quick move and capture the market. Africa has more than 600 million mobile users, which is higher than the America or Europe.

Other countries such as China, Brazil, India, Turkey, and Malaysia have also started to enter these markets. Thanks to the investment of China in the infrastructure, it will make doing business in Africa less troublesome. US in the other hands, still has very limited involvement in the business activities. US main focus is in helping African countries against HIV and poverty via some aid programs. It is good to help the countries get out of poverty at first hand, but in the long run people need more things like infrastructure, factories, and technology. There is opportunity for US companies to leverage their strength in innovation to help African countries get close to technology and services at more affordable prices.



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Author: Thai Son

Studying at Chapman university. Interest in entrepreneurship and international trade activities.