Africa: A Place to do Business?

Source: Challenges facing Africa's entrepreneurs - BBC.Com

In Africa, growth rates are rising and successful ventures are popping up all around the continent. Statistics show that in at least fifteen African countries economic growth has be running at about four percent for the last ten years.

Part of this growth can be attributed to the rise in the price of minerals. West Africa is also benefiting from oil. However, there are numerous other markets that Africa has become involved in. These markets include telecommunications, banking, and the export of agricultural goods.

However, doing business in Africa can still be difficult work. Part of the problem has been political. For example in the Democratic Republic of Congo it takes over 150 days to register a business and enforcing a contract in Angola takes forty-seven different procedures and can take more than 1,000 days. This means that many entrepreneurs have had to grease the palms of bureaucrats to get things done.

Yet if one is willing to take risks the profits can be great. For example a South African mobile phone company took risks by investing in Nigeria and ended up making a hefty profit.

More improvements in the business environment is expected in Africa as funding that was promised to the continent at last year’s G8 summit has begun to come through. It is expected that there will be an improvement in energy supplies, airports and shipping terminals; all things that can help sustain and grow a productive business environment.