The African Continent has many business opportunities with many success stories from different investors to attest to this.
While many people look at Africa, and all they see are problems and challenges like hunger, disease, unemployment, illiteracy, waste, financial exclusion, inadequate electricity, and a long list of other negatives, some smart investors are taking advantage of the continent’s natural and human resources.
According to the International Monetary Fund’s IMF’s recent World Economic Outlook, six of the ten fastest-growing economies in the world are in Africa. And by 2050, the continent’s economy could quadruple its current size and be worth up to 29 trillion Dollars.
Africa’s journey to economic growth would create so many winners as smart and successful investors like China and India.
Most investors that are currently building fortunes in Africa have a unique perspective on the African continent. They see Africa differently.
These investors have some top secrets that have made their businesses thrive in the African Environment.
As strange as it may sound, while most people are irritated and frustrated by the problems of Africa, the entrepreneurs and investors who are building a fortune and impacting lives in Africa are excited and inspired by these tough problems.
They see problems differently, the entrepreneurs who are succeeding in Africa apply their creativity and innovation to solve problems in a way that makes money, creates jobs, and positively impacts people’s lives because they have seen that Africa is a market that overwhelmingly rewards problem-solvers.
Therefore, the bigger the problems you can solve, the higher the potential rewards you get.
Again, investors have seen that African markets are progressively being seen as open for business, and regardless of perceptions of eminent risks, the continent is not different from other continents in terms of progress in business.
One major secret of African investors is recognizing that every country in Africa is unique, and to do business and succeed, every single country needs to be understood in its entirety.
Also, appreciating local players, receiving support from local experts, and building strong local partnerships are among the success secrets of African investors.
Collaborating with various organizations, cooperating with all levels of government, joining forces with the investment world, and building strong relationships with all of them are some of the successful and top secrets of African investors.
In general, African investors have realized that investing in people, especially in Africa’s youth population is another way to successfully deal with and reap positively in the continent.
Everyone knows about Africa’s potential, created by the population explosion, the demographic profile of the population, and the commodities.
Investors with insight saw that Africa’s young population could offer a tremendous comparative advantage in years to come that could propel the continent forward as a dynamic and productive engine of growth for the entire world.
They have also learnt to focus on the positive sides of the continent. Africa has many positive sides, from its youth population which is also part of its human resources, to its vast land for agricultural purposes and progress, its oil and gas sector, and even the tech that is springing up speedily.
Being patient and persistent, with the African people and their environment is another secret that can not be overlooked.
African investors are aware that in dealing with the continent, they need more patience. The African markets can be unstable and time horizons might not always be effective. Even highly sophisticated companies sometimes re-evaluate their business plans, just as Nestle did in 21 African countries last year.
Many countries also have deficits. These gaps will need to be filled by smart and resourceful investors who can bring more prosperity to Africa.
Having realistic expectations and being prepared for hidden costs or surprises are among the investor’s secrets to success in Africa.
Investors know that Africa’s potential is vast, real, and attainable and when it comes to unlocking these potentials and achieving sustainable returns on investments, smart investors need to find a thorough understanding of the continent’s local, political and socio-economic context.
Another top secret to succeeding in the African business environment is the ability of investors to be able to conduct comprehensive due diligence on projects and partners and implement a robust risk mitigation plan to see their investments through.
Identifying and knowing that there is a right way to invest and also a wrong way to invest is a key secret of African investors. Haven identifies both, then you are sure to go the positive way. Knowing that the right way leads to financial success and the wrong way leads to financial failure is key.
They already have a made-up mind that even if they are not making returns from the beginning of their businesses, they would continue. This has also been a driving force to a successful business in Africa.
Investors have seen that African economies are diversifying and therefore, they see new sectors growing rapidly such as telecommunications, real estate, consumption, and infrastructure. They are trying their best to explore these new sectors in the continent.
Investing in African real estate across major cities in the continent is lucrative for investors. They form cooperation with relevant countries’ housing sector and some private firms, then provide, commercial building solutions for residential and commercial purposes. With this, they make sure returns as profits, thereby, adding another feather to their caps as smart investors.
Still, on real estate, most investors in Africa have concentrated on developing new hotels, and they are doing this business so well that they are building the most suitable hotels around the continent. Seeing that the continent has so many tourist sites and attractions, investors know that travellers troop into different African countries on daily basis therefore, building hotels in strategic places is a successful business story for smart investors.
