Africa is a huge continent and consists of 54 African countries which are great source of Agriculture, Oil and gas, Mining, Diamonds, gold and other natural resources. According to reports it has been observed that African continent riches with around 30 % of earth natural resources. This is huge percentage and no other continent can solely provide this much abundance of resources.
Currently some of the African sub-Saharan countries are facing the problems of
1. Extreme poverty and hunger
2. Lack of education
3. Gender biasing and empowering women
4. Health Hazards like HIV/AIDS, malaria and more
5. Lack of global partnership development with in the countries.
Government is still having a hold on these activities but due to government security protocols the all African countries can co unite for any special requirements. Two thirds of the continent population is working in Agriculture sector. Every year it contributes approx. 60% to the total GDP of the continent. Along with this the country offers an average of 85% of literate people aged between 18-40 years. Companies around the world are continuously focusing on methodologies to enter into the market due to several factors including-
Availability of tremendous natural resources on the continent
African economy majorly contributes a high amount of share to its GDP and the main factor is the abundance of renewable and non renewable resources. Companies from the USA, UK, Australia and Some European countries are already trying to enter the market with huge planning and preparation. The continent is major producer of natural substances like minerals and metals.
This includes diamonds, platinum, gold, silver, nickel, and other important resources. Countries like Tanzania and Ghana are among the major producers of gold in the world, and countries like Angola, South Africa, Namibia, and the Republic of the Congo are dominating in terms of the largest producers of diamonds.
Suitable geographical locations for air, water and land transport.
Geography of this continent is supporting all means of transportation and proves to be Investment friendly for various technical and non technical companies. Large shipments can be transferred from one place to another with the availability of means of transport. Whereas companies from America, Asia, Europe and Australia can experience free flow of trade via shipments. Government and private transport corporations are extensively meeting the needs of trade of people with the use of latest transport facilities. 72% of the African population lives in cites and suburbs which is another factor of sensible investment into the company.
Relaxation on government policies
African government is putting almost no restriction over the foreign investment in the country. Countries like Nigeria and Kenya are becoming a hot spot for world class organizations to invest in a new business. This led to an increase in service imports and also creates money in the market. African countries like South Africa and Ghana is hub for mining, technology and Healthcare industries. In 2011, the South African government has imposed only 8% of tax in several industrial sectors. This has invited companies to invest in or expand business in the country.
High profit market for potential national and foreign investors
Investment within the scope of development is the main motive of any investor. Africa, the continent that is full of resources and availability of skilled labor, is becoming the preferred choice for many investors. According to the World Bank India and China are almost on the urge of outsourcing industry which is quite advantageous for African economy. Due to the high purchase power of the dollar in the African economy, the companies are able to generate higher ROI as compared to investment in any other country.
All these factors are directly or indirectly related to youth empowerment, when companies invest into the economy then there are number of employment opportunities which can be seen in terms of new job creation. According to international labor statistics only some of the African countries are producing a major share of profit to the whole sum of African GDP. Several other factors like civil war, Terrorism, Illiteracy, Unemployment and poverty are some of the backlogs of this economy. Governments, foreign officials and NGOs are trying their best to come up with great support to demolish these unwanted negative factors.