MAKING BUSINESS IN AFRICA
Making business is a long process. You should make rational calculations and make a cost-benefit analysis in a deep way. Today, Europe has begun to share its popularity with African Continent in terms of making business and investment.
This article aims to provide some insights about the profile of Africa as a region. Secondly, you will find relevant information about how to make profitable business in Africa.
South African Region
South Africa is known as the largest economy of the African continent and the economic leader of Sub-Saharan Africa; it has very rich raw material resources, strong textile, tourism, automotive, agricultural sectors and established infrastructure.
With its rich mineral resources and good land for farming, it is seen that the South African economy has undergone a significant change in the last forty years and the secondary sectors have started to become more dominant in the economy. In this framework, the contribution of agriculture to the country’s economy remained at 2.4% in 2012. In the mining sector, one of the most important reasons of the decrease observed is considered to be the decrease in gold production over the years. The manufacturing industry, construction and electricity, gas and water sectors, which constitute the secondary sectors have started to become more important in the economy.
South Africa, like any other European countries has a developed banking sector and an independent jurisdiction. South Africa aims to rank among the top 50 global economies in the World Bank’s Business Report in the next 3 years.
After the Coronavirus that shook China, the African continent with 54 countries is a candidate to become the new competitive scene of the economy with its real potential. In Africa, with a share of only 2.6 percent in world exports there is a need for products in almost every field on the continent, from machinery to motor vehicles, from cereals to plastics, iron and steel, pharmaceutical and health to chemical products.
Metals are very precious
The precious source of income for Africa consists of precious stone, metal, jewelry items. As of 2018, the contribution of these products to the current account balance of African countries is 47.5 billion dollars. The Republic of South Africa is rich in precious stones and metals, with platinum ($ 7.8 billion), gold ($ 5.5 billion) and diamonds ($ 2.1 billion).
A Strengthening Textile Industry
The status of the textile and ready-to-wear industry is also one of the clearest indicators that reveal the economic structure of Africa. North African countries are very advantageous due to their geographical proximity to Mediterranean countries, as well as cheap raw materials and labor. For example, Morocco is an important production base, one of the world’s largest producers.