Africa analysis

Before giving you my analysis, I would like to thank you for the workshop you gave to us. As a Moroccan man, I always had European teachers who were talking about the African economy, so I’m happy to have an African talking about Africa. For me no one can knows this subject better than African.

Please find below my analysis

Reponse 1:

Introduction

The last 20-25 years of growth patterns in the world have shown how Asia has dominated the market place and has shown the world its capability in terms of constant growth and infrastructure and communication development. Countries such as China and India have cultivated their societies over this growth model and this has largely helped each one. Foreign countries such as the United States, Germany, and Russia etc. have heavily invested in the Asian sub-continent and beyond to allow for technological developments to take place which have benefited both the host and the country which is investing.

Up until the last decade or so, Africa was never considered for investment due to the rapid rise of Asia, this however is changing fast, and the continent is fast transforming into a developing or developed one and is on the path of stable growth. It is this reason that the region is also called the next best investment destination.

Case Specifics:-

Most countries across the African continent were extremely poor with little to no access to facilities such as modern healthcare, nutrition, social benefits, education etc. But this phenomenon has largely changed ever since businessmen started seeing the enormous opportunities that exist in the African continent.

The following are factors which have helped in the rise of Africa and its constant growth and development.

•  Massive Capital Inflow and Investments:-

China for an example has invested billions of dollars into the African Continent for the development of technology, infrastructure and communication in most countries. This has resulted in rapid growth of countries which mean that they are now stable for investment. One of the main reason why companies would shy away from investing in the African continent is because they were lacking these elements which are critical for survival and growth of companies.

Once infrastructure has been developed, funds have started flowing into the country leading to change in the society and rapid development respectively.

• Availability of Resources and Land:-

No one has ever denied the fact, that Africa is one of the richest regions when it comes to availability of resources and land. This land though, has never been invested upon properly or utilized with modern technology to maximize the overall production and productivity of the nation.

This however has changed due to investment as mentioned above. That multiplied by the fact that land availability and natural resources are abundant in the area have made it possible for investors to bring in money and earn thus making the continent a favourable place for investment

• Low cost of Production

It is a known fact, that in countries where in manpower availability is abundant, and where the labor force requires significantly lesser amount of money to conduct its operations, investments will flow. The major reason why countries such as China and India have developed so much is because of the simple fact that their overall cost of production is very low and man power is available at cheap rates.

The same factor now is facilitating the development of Africa. The country has majority of its population living below poverty line which readily are looking to work for a very small fraction of the salaries that would be needed to give to the western counterparts the fact that production can happen due to increased investment and availability of resources has lifted the continent into being a lucrative destination for investment.

• Political Stability and fall of Corruption:-

From the 2000's, many countries of Africa like Ghana, Mauritius, and Namibia etc. have seen stable governments year after year and the end of radicalization and extremism. Any country for elevation of its economic status requires such steps which are constantly being taken in the African Continent by regimes year on year. This has also made some areas in particular, lucrative for investment and have made the African continent an emerging market respectively.

Response 2 :

Africa has a population of more than 190 million.

The African economy is strong and there are many opportunities to do business in this country, but the Africans largely ignore the rules of the Western world.

They have unique insights and ideas about how to conduct business, so there could be a significant gap between the trading patterns of other countries and Africans.

Therefore, to do business in Africa, it may be best to enter the local market with an experienced negotiator or consultant.

Africa is a very different country from those who would like to start working there. The keys to success are adaptability, flexibility and cultural background.

Below, we will try to explain some useful information:

General behaviors

In Africa, maintaining a personal relationship with your colleagues and superiors is normal. At first, they spend hours getting to know each other. In Africa and Asia, family is an important topic of conversation. Therefore, talking about family and health might be the best way to know your partner.

During meetings, it is important to be pleasant and enjoyable. Do not try to rush into this process or impose your own agenda at these first meetings.

In private meetings, do not be shocked if they are interrupted by calls, emails, or knocking on the door. Africans work a lot in teams and managers manage them constantly.

Africans prefer to use Mr. / Mrs. / Mrs. and last name, so using your client's first name is not common.

Titles are also of utmost importance. Many Africans will insist that full titles be addressed at all times. Some professions are also used as titles, such as "engineer".

Greetings

Hosting processes are very important in Africa.

Take the time to exchange jokes and ask questions about everyone's well-being. Shaking someone's hand is common; if you are a man who welcomes a woman, wait until she reaches out first.

Do not forget to shake everyone's hand when you enter a room and review the mandatory introductions long enough, warm and with good grace. Try to greet each member of the group individually, in order of seniority.

It is a sign of common respect, which can also apply to superiors. You should also bow your head when you shake the hand of a person who is obviously older than you.

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