Why Investors Must Come To Africa Now

By Rommy Imah

In what was then known as the ‘New Imperialism’ period, the scramble for or partition of Africa took the centre stage. It was a period the continent of Africa, against her will, was forcefully invaded, occupied, colonized and annexed by European powers. That was between 1881 and 1914.

Perhaps, as a panacea for the political and economic rivalries among the European empires, in the last quarter of the 19^th century, the partitioning of Africa forestalled the Europeans warring amongst themselves over Africa.

No doubt Africa is the world's second-largest and second-most-populous continent. At about 30.2 million km² (11.7 million sq mi) including adjacent islands, it covers six percent of the Earth’s total surface area and 20.4 percent of the total land area. With 1billion people (as of 2009), Africa accounts for about 15% of the world's human population.

During the colonial era, almost the entire African continent was at the mercy of European colonialists who saw in Africa, a profitable continent to explore. So as the century moved on, it was obvious that the objective of the European explorers changed, and rather than travelling out of pure curiosity, they started recording details of markets, goods, and resources for the wealthy philanthropists who

financed their trips.

Ever since Africa came under the control of the European imperialists following the continent’s colonization up until lately, the Western media has taken delight in reporting so many unpalatable things about Africa. For them, nothing good can ever come out of Africa except evil.

In the article, ‘The After Effect of European Colonization on African People,’ Onwutalobi Anthony Claret noted thus: “That Africa has been an "altruistic repository" where all media from the west search and tap their awful stories and news to tell the world is a fact we have to live with. Most times, they paint Africa more than black that it is. Have you ever travelled outside of Africa before? Or have you ever been confronted with questions that are based on stereotype?

“Maybe you have (not). To be direct, examples of stereotypical questions go this way: Where are you from? If you happen to say Africa or any country in Africa, the next question maybe: Is there any building in your country? Or do you guys still live on trees? Or are you guys fighting wars now?”

Demographers, economists, industrial and agricultural experts believe, and evidently too that Africa possesses all the ingredients to be the planet’s dominant economic engine for decades, perhaps the entire 21st century. Those ingredients according to Mike Obel of International Business Times, are already lifting a continent once ignored by all but novelists and revolutionaries into the big leagues of global economic dynamism.

If it is accepted that Africa’s economy is growing faster than the economies of every other continent, and that about one-third of Africa’s 54 nations have a yearly gain in gross domestic product of more than 6 percent then, there is no gainsaying the fact that Africa will not only dominate global economy this century and successive ones but will dictate the direction of the world economy for a long while.

Several factors are responsible for this positive story of Africa. Today, Africa has graduated from a continent of autocratic military dictatorships to near liberal democracies. There are little or no military coups any longer. The continent is progressively embracing market forces which in turn, are bringing down inflation.

Today, whereas the African trade is growing rapidly and actively too with a reportedly $2 trillion economy; the continent’s desperation for education has been a major contributor to her economic growth.

Above all, Africa is ranked world’s fastest growing telecommunications market. Mobile penetration rose from a dismally two per cent in 2000 to 78 per cent today and is expected to rise to 84 per cent in the next two years.

So, there are enough reasons why every right thinking investor should be looking at Africa as the next destination point. Any investor, who is still looking at Africa with the pre-colonial and post-colonial eyes, would be doing so at his own peril.

Investors should be coming to Africa now as opportunities abound in a continent so desperate and desirous of becoming a continental economic power bloc before the turn of the century. Quick Return on Investment, RoI is a guarantee for investors that are wise enough to tap on Africa’s most rewarding abundant opportunities.