Business View Magazine - May 2016 21
the world, far above all other regions.
One myth is that western companies have been
eclipsed by China in terms of investment in Africa.
But the Financial Times, citing data from fDi Intel-
ligence and This is Africa, reports that Western Eu-
rope invested more than $47 billion and North Amer-
ica, $13 billion in Africa in 2014. The U.S. was the
third-ranked country for capital investment with $8
billion invested and 67 U.S. companies launching or
announcing projects.
Certainly the risks of investing in Africa remain high,
just as they are for most emerging markets. But the
perception of risk can be greater than the reality. If
you’re considering doing business or investing in Af-
rica, here are some considerations to keep in mind.
Pick your country. Africa is the second largest con
tinent in the world, with 54 separate nations. There
are huge differences between these countries. You
need to familiarize yourself with the unique culture,
economy, and politics of each African state in which
you plan to do business.
Even the climate can vary. While Africa is overall hot
and dry, the continent is primarily desert in the north
and savanna, plains, and rainforest in the central and
south. Angola, for example, encompasses a variety
of these landscapes, with rich soil for agriculture,
winding rivers, and a coastal climate attractive for
tourism.
Best places to start. There are several countries
that are now facing difficulties with current oil pric-
es, such as Angola, Africa’s second-largest oil pro-
ducer, as well as Ghana, Mozambique, Nigeria and
others. But sometimes these types of scenarios
can provide the best contrarian opportunities for
new investment. Many other economies through-
out Africa are growing stronger and stronger, with
sustainable fundamentals. These include Rwanda,
Botswana, Morocco and others.
The World Bank has issued its Doing Business rank-
ing for 2016, an annual report covering quantitative
indicators on business regulations and protection of
property rights in 189 economies worldwide. The
report names Uganda, Kenya, and Senegal among
the economies that improved the most in the last
two years. Sub-Saharan Africa, alone, accounted for
about 30 percent of the regulatory reforms making
it easier to do business in 2014 and 2015, the report
says.
Based on the World Bank ranking, CNN reports on
the 10 best countries to start a business in Africa.
The top five, CNN says, are Mauritius, Rwanda, Bo-
tswana, South Africa and Tunisia.
Where to avoid. Late last year, Forbes also ranked
the best countries for business, based on criteria
including corruption, red tape and taxes, as well
as monetary and personal freedom. This ranking
placed Chad, Guinea, Gambia, Algeria, Ethiopia and
Libya on the bottom of the list.
Of course, the best place to invest in Africa depends
on your company’s objective and strategy. Consum-
ers in Africa, no matter their income levels, are highly
aspirational and want quality products and services.
They are also very brand loyal. If you aspire to do
business in Africa, you could find a welcoming mar-
ket – or multiple markets -- for your company.
Zandre Campos is chairman and CEO of Angola
Capital Investments (ACI), an international in-
vestment firm that invests in companies in the
healthcare, energy, transportation, hospitality,
and real estate sectors throughout Africa. The
mission of ACI is to create global value for devel-
oping countries in Africa, while contributing to
their economic development.
