Daily Archives: April 7, 2011

Natural Resources: Not The Hotspot For Investment Africa Anymore

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Making an investment Africa usually meant an Africa investor investing in resources.  But recently, according to studies, the investments are shifting. It is a fact that in the past, investors used to put their money on the African resources.  Why is this so?  The African continent is known to be a very rich country, with abundant resources such as precious metals and oil.  Many of these resources still remain untouched, so foreign investors make it a point to use these resources.  If that is the case, why are investments shifting to other areas when the money is believed to be in the resources?

The investment Africa nowadays is gradually shifting to services, manufacturing, tourism, and communication.  In spite of the low skills levels of the people and the poor infrastructure, a lot of Africa investor opt to put their investments in those areas.  With the recession hitting many countries, it has been found that the gross domestic product (GDP) of the African country still continued to expand.  The top countries that contributed to the rise of the GDP include Tunisia, Algeria, Botswana, Libya, Mauritius, Morocco, and South Africa.  Back in 2008, it was discovered that the collective GDP of the African continent even equaled that of Brazil or Russia.

Despite the poor infrastructure, an Africa investor still takes the risk to make an investment Africa in any field mentioned above.  Experts are actually inviting all people to come and invest in Africa.  This may seem a crazy idea, but they say that the market is highly feasible now.  Since the market is not so saturated yet, there are good things that will happen to those who invest in Africa.  This is one of the reasons why experts encourage people, both foreign and local residents of Africa, to come and invest in the African continent.  And investors seem to follow this and do so, even at a slow pace.

It is said that 60% of the growth in the economy of Africa comes from the areas of retailing, communication, tourism, manufacturing, and many more.  This is why investment Africa is shifting from the raw materials or resources to these fields.  There are signs of progress in these areas, and an Africa investor should take advantage of that while the market is still young.  The market is believed to be very hot.  Experts do not stop encouraging foreign and local investors to come and invest in the African continent.  The continent shows a lot of promise, even if it has a lot of problems going on.