1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
igor_vitrenko [27]
2 years ago
8

Why do you think South Africa should invest more in africa​

Social Studies
1 answer:
STatiana [176]2 years ago
8 0

It’s important to acknowledge that Africa tests an investor’s patience. Time horizons and return models that fit other markets don’t always work in there. Even the most experienced, sophisticated companies can be forced to recalibrate, as Nestlé did last year when it announced a 15% cut in its workforce across 21 African countries.

Deficits remain. What’s important is that investors now realize there is money to be made for those bold enough to help close the gaps. As that takes place, the promise of greater prosperity for Africans and African businesses will be realized. Why is it a good time to invest?

1. Africa needs ‘connectors’

Missing across much of sub-Saharan Africa are the roads, rails, ports, airports, power grids and IT backbone needed to lift African economies. This lack of infrastructure hinders the growth of imports, exports, and regional business.

Companies that can connect Africans and markets can prosper. Sub-Saharan Africa is plagued by power outages – almost 700 hours a year on average – sapping productivity, adding cost and leaving businesses captive to back-up and alternative power options. Massive investment is leading to major upgrades and expansion at African ports and airports, but much of Africa’s growth potential depends on in-country and intra-African road, rail and air connections.

Roads and rail lines are sparse, decrepit and over-burdened. A lack of aviation agreements has limited intra-African air connections. Africa’s lack of efficient storage and distribution infrastructure hinders businesses, entrepreneurs and farmers. Up to 50% of African fruit and vegetables spoil before reaching markets.

There’s a soft infrastructure deficit, as well. Outside of South Africa, the data and information critical to decision-making by businesses is missing or hard to obtain – credit and risk information, market data, consumption patterns, you name it. Lessons from Dubai and Singapore tell us that once an infrastructure race is on in a rapidly expanding market, being the first-mover is a significant advantage for investors.

2. African trade barriers are falling and intra-African trade holds enormous potential

With the 54-nation Continental Free Trade Area – Africa’s own mega-trade deal – even the smallest African economies could see a lift. If duties are lowered and incentives introduced, manufacturers could see benefit from setting up production and assembly operations in multiple African countries. That could lead to development in electronics, machinery, chemicals, textile production and processed foods.

As a first step, free trade between and within the African economic blocs would make a huge difference. Africa’s share of global trade – a meager 3% – can only increase if the continent’s commodity and consumption-led economies begin to produce a broad array of goods for home markets and export.

And an increase in local beneficiation in the commodities sector could be a driver of growth – processing local commodities (such as minerals, coffee, cotton) in country rather than exporting them in raw form. That said, it will continue to be a challenge for regions with poor power and infrastructure to compete as global manufacturers.

3. Customers are changing

With the growth of Africa’s middle class, we’re seeing development of new expectations. Educated, urban professionals are young, brand-aware and sophisticated in terms of their consumption. Retailers and consumer brands want to anticipate and drive buying preferences in fashion, home and lifestyle products, but they know they need international standard supply chains if they are to meet demand. The largest economic forces in Africa are small to medium enterprises, working to meet this new demand and competing with global brands

hope \: its \: helpful \: to \: you \: please \: mark \: me \: a \: brainliest

You might be interested in
In June 1989, students in China sent emails to friends outside the country,
Gelneren [198K]

Bush wanted that china could change, and allow democracy.

He wanted to change, he helped them through the struggle to get to the democracy.

8 0
3 years ago
Definition of imperialism
Mariana [72]
A policy of extending a nation power by gaining political and economic control over other nation.
4 0
3 years ago
What does give me liberty or give death mean?
MAVERICK [17]
Give me liberty or give me death definition. Words from a speech by Patrick Henry urging the American colonies to revolt against England. Henry spoke only a few weeks before the Revolutionary War began: “Gentlemen may cry Peace, Peace, but there is no peace.
4 0
2 years ago
Is there a relationship between a planet’s diameter and mass?
Mila [183]

Answer:

But a planet's size is not necessarily proportional to its mass. In the end, how massive a planet is has more to do with its composition and density. So while a planet like Mercury may be smaller in size than Jupiter's moon Ganymede or Saturn's moon Titan, it is more than twice as massive than they are.

HOPE IT HELP YOU......

MARK ME AS BRAINLIST

7 0
2 years ago
What do you think are the things digital society can offer compared to the previous type of society​
maria [59]

Answer:

The notion of digital society reflects the results of the modern society in adopting and integrating information and communication technologies at home, work, education and recreation. Digital innovations are reshaping our society.

3 0
3 years ago
Other questions:
  • When an agent acts for an undisclosed principal, the principal will not be liable to third parties if the
    13·1 answer
  • Making $65,000 as a lawyer would most satisfy which of these personal benefits of work?
    9·1 answer
  • Why was Hancock upset about his election to the House?
    5·1 answer
  • Ina_ economy, individuals and businesses own the resources used to
    12·1 answer
  • Unlike boys, adolescent girls are less likely to stress the importance of__________while making friends.
    6·1 answer
  • In your opinion what can be done for nepal to develop make a list of suggestion<br>​
    11·2 answers
  • Help ASAP!
    5·2 answers
  • How important is the function of the magisterium
    14·2 answers
  • Select the correct answer.
    15·1 answer
  • An increase in investment and government purchases can be expected to shift the aggregate expenditures curve ________.
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!