Why invest in Africa in 2021?

Because the world's largest single market for investment has opened up!!!

 

On 1 January 2021, the world's largest single market opened, and the African customs union was formalised, so investing in this new market that quietly opened in 2020 as the African single market means not only making investments for an immediate economic return, but also occupying a dominant strategic position in a market that has yet to be developed.

Now investing to open a production company takes on a strategic role for companies that are interested in internationalisation processes and the development of virgin areas with raw materials to be processed for resale on the domestic market.

Below is the official video of the opening ceremony of AfCFTA

 

the African Union is the largest single market in the world in which to invest in etf and real economy

 

Today the continent has become the largest free trade area of the world. The underlying agreement is called African Continental Free Trade Area (AfCFTA)all states with the exception of Eritrea and provides for the elimination of duties on 90% products and services.

The objective of the African Union that of increase the volume of trade between different countries and promote the creation of millions of jobs on the continent.

At the moment, the African economy lives and relies heavily on exports to Europe and Asia. Trade in goods within the continent barely accounts for 15% of the total. Now, the products most sold abroad are raw materials resulting from mining activities that impact and have limited employment on the continent.

And it is precisely this critical issue that AfCFTA wants to find and implement solutions to eliminate. In the official ceremony in launching the agreement, it was repeatedly emphasised that theelimination of duties and non-tariff barriers,  this can create new business opportunities for small and medium-sized enterprises, in sectors that could provide an important outlet for female employment, often concentrated in the informal economy, and for youth employment.

In this sense :

"The African Continental Free Trade Area should not just be a trade agreement but a tool for Africa's development," said Wamkele Mene, secretary general of the African Continental Free Trade Area secretariat, adding that the goal is to double the volume of internal trade in 15 years and "get out of the colonial economic model that we inherited and maintained for 50 years".

La World Bank pointed out in his study that If the African Continental Free Trade Area is implemented in all its aspects, 2035 could be the year that will spell the end of poverty for tens of millions of people, and Africa could see its overall GDP increase significantly. Like western economies, the African economy is also suffering from the repercussions of the Covid-19 pandemic crisis.

Africa is proving unexpectedly resilient to the global Covid-19 pandemicGDP growth on the continent is estimated at 1% against 4% at the beginning of the year. The most sensational aspect is precisely the erroneous projection made by the scientific community at the beginning of March, which feared a humanitarian catastrophe in Africa due to the spread of the Wuhan coronavirus infection.

On the health sector front, the numbers speak for themselves: in Africa there were 2 deaths per million inhabitants compared to 200 per million in Europe. Analysing the world ranking, this picture is striking: in fact, the top three African nations in terms of the number of infected are South Africa (19), Egypt (26) and Nigeria (50).

 

But what are the industry risks for those investing in African countries?

As we read from the website of the well-known and experienced financial advisor Eugenio Benetazzo whose forecasts on development and opportunities for future industry investment in the African market I invite you to listen to in the video below.

The African continent is currently most affected at economic and humanitarian level as a large part of Africa's GDP depends on exports of raw materials, both industrial and soft commodities. Unlike the United States and Europe, however, the continent is not affected in the production chain and on the employment front precisely because of its own economic structure that is still poorly interconnected with other macroeconomic areas of the world. Moreover, the African economies that drive the continent's growth, especially Nigeria, South Africa, and Egypt, have not implemented monetary expansion measures to the extent that Western economies have.

The body now in charge of supervising and accompanying the implementation of the agreement is based in Accra, capital of Ghanaand the secretariat works with Afreximbank to create a pan-African trade platform that allows small businesses to trade effectively without borders and in different currencies.

"Often in trade agreements the big winners are the already industrialised countries and large companies that can access new markets literally overnight,

stated Wamkele Mene to the Financial Times, the secretary explained that it would be a major failure if market integration ended up accentuating inequalities between states.

Another testimony on interventions and opportunities for those investing in Africa and about the great opportunities in the world's largest market comes to us from this must-see video. In the video, the Euvin Naidoo Banker who opens his speech by beginning as follows:

Welcome to Africa! Or perhaps I should say, "Welcome home". Because this is where it all began, isn't it? By analysing fossils from several million years ago, everything seems to testify that the history of our species as we know it began right here. Over the next four days we are going on an exceptional journey. You will hear stories from 'Africa: The Next Chapter'. Fantastic stories, and anecdotes from the speakers. But I would like, for a moment, to do the opposite, to bring up an issue and 'clear the air', so to speak. What is the worst thing you have ever heard about Africa? This is not rhetoric. I want you to answer me, I really do. Go on! The worst. Famine. Corruption. Again. Genocide. AIDS. Slavery. Enough.

 

Managing risk calmly and professionally

 

Thanks to important bilateral recognitions and collaborations in various fields with institutions, port agencies etc, for your economic breakthrough in Africa, AEDIC offers the opportunity to enter a safe harbour, with tax benefits and tax relief for 10 years, concessions and low cost of highly educated skilled labour in position central in AFRICA.

When you have decided to act, we provide you with all the essential risk management tools throughout the investment lifecycle.

 

Aedic with its consultants has the opportunity to bring you into Central Africa and take a position where the industrial city of Kribi will be built.

Watch this video to better understand what we are talking about.

 

[su_youtube url="https://www.youtube.com/watch?v=P0savsBM0CA" title="investing in africa in Kribi (Cameroon)"]

 

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