Gone are the days of Gulf : Africa is now the emerging economy

            Middle East was always the enticing region for the unemployed to build a career. As a lucrative destination for jobseekers, there was a mad rush to this part of the globe to fulfill their aspirations, to earn livelihood and for a prosperous life back at home. But the trend is changing

David Mc Donald, founder of the ‘The Global Millenial’ in an interview to “Forbes’ has said that there is sudden shift towards financial sustainability in Africa and it is surely the next emerging market

And recenly Aliko Dangote, CEO, Dangote Group in an interview to a local news paper spoke about the changing scenario in the African region.

David Mc Donald stated that risks are falling and telecommunication capabilities are improving and as a result it is becoming a viable place for investment. Moreover it has the advantage of production capabilities due to world’s fastest growing population

Aliko Dangote Africas prominent industrialist said in the interview that entrepreneurs should look for long term investment, not just for mere one or two years thinking that you can reap a thumping profit.  One of the reasons  he feels is that  it is the right time to invest in African countries  since she is quickly trotting to stability after long  years of instability due to civil war and weak governments.

Mr. Aliko Dangote sees lot of potential for trade in Africa.  He said, as an example,  “ In  his company itself  there are around 2300 Indian employees.      

Afrcian countries give so much importance for trade, diplomatic and bilateral relations with other developing countries.  The downward trend of oil prices is affecting countries that rely on petroleum for their economy.  These countries will surely face the brunt as the price of petroleum is in the downward plunge. Countries that survive on the income from Petroleum will suffer.

Africa’s main resource is soil, not Oil. Africa has the capacity to feed all the people of the globe..

Trade with China, India, Russia and Brazil is on the rise especially after the inking for the BRICS trade agreement. Chinese President Xi Jinping offered a whopping 60 billing loan and aid package to Africa. Xi Jinping has said that China plans to develop infrastructure, improve agriculture and reduce poverty in the whole continent.

Many investors are in the foray in investing in the continent. Blackney Management, London based Fund Company, is investing in the continent for over a decade, and to name some countries they are Angola, Mozambique and Ethiopia. South Africa’s Pamodzi Investment Holding is investing US $ 1.3 billion pan – Africa fund backed by US financial institutions.

Over the years investment opportunities have gone up very much in African countries. In the year 2000, only 66 firms were listed on Sub- Sahara stock exchanges, now it is more than 522 firms.  Once Africa was termed as a ‘risky’ and ‘low return’ is now looking more robust and lucrative to investors.

 

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