Efficiency African companies is increasing
In Africa manufacturing industries, contact centers, the IT-sector and construction are fast-growing sectors. "Despite a bad image of war, hunger, poverty and corruption, Africa is becoming increasingly more interesting for big investors," concludes Harvard Business Review. Not just many African countries have stabilized significantly in the past years; many countries are aiming for global connection and are introducing economic reforms. The International Monetary Fund calculated an economic growth of 6.3% for sub-Saharan countries while for Uganda, Tanzania an Nigeria a growth of 8% has been predicted.
A study amongst 954 production companies and tertiary services shows that the majority of the companies is very profitable. This is especially thanks to low wages (that are significantly lower than in China and India) and strongly increased operational efficiency. The average yearly return on invested capital was even 65-70% higher than of comparable enterprises in China, India, Indonesia and Vietnam. The average profit margin was 11%, higher than that of Asia or South-America.
Future Vision by Erwin Van Lun on this article
After China and India have developed into prosperous nations in the coming ten does, it’ll be less interesting to produce things in these countries. Africa will be their successor. But because not just the west, but China and India too, will outsource to Africa, and half the world population throws itself onto one continent the effect will be even stronger than it ever was in China. In combination with upcoming communication devices that can cover great distances and is, furthermore, solar powered – which will allow the level of education to rise rapidly – Africa will develop into a prosperous continent with a never-before seen speed. When the robots take work from our hands in 2020 and 2035, a completely prosperous world will be created, a world in which it’s all about communication, understanding and peace. It sounds almost mushy. And that’s how we’d experience it if we were dropped into it now.