If one were to draw a mental picture of the world’s continents as districts of a city in terms of their business opportunities, I think North America would be the centre of everything, the place where it’s all happening. Europe would be the high-class neighbourhood – contrasted sharply with the bad part of town that is South America. There’s Asia, which would be the hippest district where the cool people want to be, and Australia would be that relaxed spot by the water.
But what of Africa? Well, I think Africa as that part of the city that’s a bit out of the way, the one that’s difficult to get to and where no one is really sure what to expect. Some tell good stories about it, others not so good. However, speaking as someone who’s been to that part of town, I’ll tell you what, it sure is a happening spot if you know who to hook up with!
First and foremost, let’s get some facts straight. Africa is the second largest continent on earth, with remarkable human resources. Compared to rates in other part of the world, tax is virtually non-existent. And most importantly, I’m not sure there is any other continent that can boast such an abundance of natural resources. Africa truly is a virgin land of opportunity.
A recent poll by Ernst and Young found that Africa is becoming increasingly attractive to investors. Indeed, there are not many parts of the world that can boast the talent we possess at such competitive labour rates. I come from a part of Africa where a university education is a pretty basic requirement. I grew up with the mentality that having a degree was a prerequisite to making a living. This kind of thinking, I dare say, is not as prevalent elsewhere in the world.
Another element of attractiveness to investors is the state of development in social amenities and infrastructures. Take for instance the mobile communications industry: the boom has been more than magical. Figures indicate that since the end of 2006, nearly 70 per cent of mobile subscriptions have come from developing countries. Growing up, I clearly remember what it was like without a cell phone – and just as clearly I?know today that I couldn’t live without one.
Yet another indication if the emergence of Africa as the hottest place to be is the relationship of the continent with the BRIC countries of Brazil, Russia, India and China.
The latter of these has long been a big investor in Africa, and more recently the Indian minister for commerce and industry Anand Sharma pledged an investment of €1.5trn in the African economy over the next decade.
Africa really is the best-kept secret in the world of business. At the same time, improving education standards is creating a populace ever more aware of and hungry for a better way of life. In my opinion, that land that was once renowned only for its beauty is now a whole lot more than beautiful.
Olajide Jatto is a software engineer and writer based in Dublin.
