Africa challenging BRIC regions as most favourable investment destination
2008-10-07T00:00:00
Africa is hot on the heels of the BRIC (Brazil, Russia, India, China) regions as the favourite emerging market for foreign investment, according to an international survey of senior business executives launched today by global business performance consultancy, McKinney Rogers.
The research report, called ‘Investing in the markets of the future’, encompassed Europe, Africa, Asia Pacific and the US and was designed to identify which markets global business leaders will be investing in over the next year, and what they see as the key components of success when working in emerging markets.
While India was the most popular choice amongst respondents, with 47% of those questioned planning to invest there in the next 12 months, followed by China (43%) then Russia and Brazil (37% each), Africa came in just behind, with 33% of respondents seeing the continent as an investment opportunity.
Commenting on the research, Chris Stephenson, Regional Partner for Africa at McKinney Rogers said: “Africa is a continent with significant investment potential for both domestic and international investors. Although general western investment focus has in recent years been on the BRIC markets, many savvy businesses are looking further afield for less tapped-into emerging regions that may offer greater financial returns. The African continent is a good example, especially as it is seeing its strongest economic growth since the 1970s, partly thanks to rising interest in its oil, gas and mining sectors.”
This is despite the fact that Africa is perceived to be weaker than the BRIC regions in terms of political and economic stability and the short comings of its transport and communications infrastructure. Notably, the very things Africa was seen to need to build on, were those that respondents cited as the most important elements that an emerging market needs to attract inbound investment.
“The great business potential that Africa offers is testament to the fact that respondents to this survey plan to invest in the continent despite concerns over economic and political stability. We are increasingly helping clients mitigate the risks associated with doing business in Africa by ensuring they have sound operational plans in place, delivering the business strategy through practical tools and training focused on behaviors, process and performance. Of course, it is important to bear in mind that the African continent is made up of over 50 countries, each with their own unique culture, market and resources – with some having a much better investment prospects than others. What is vital when investing in an African country, and indeed in any emerging market, is a thorough understanding of local culture and mindsets,” concludes Stephenson.
For a copy of the report, Investing in the markets of the future, please email claudia.kellermann@portfoliocomms.com or call +44 (0)20 7240 6959
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About McKinney Rogers:
McKinney Rogers is a global business performance consultancy, with operations in the UK, Europe, Africa, Asia and the US. In partnering with its clients, McKinney Rogers strives to continually add value, by focusing on driving business performance and delivering sustainable growth year on year. Its Business Performance Solutions take business from strategy to execution through the rigor of robust processes and behaviours.
McKinney Rogers works with a number of global clients including Diageo, Pfizer, Wal-Mart and Thomson Financial Services.
Visit McKinney Rogers’ website at www.mckinneyrogers.com
For more information:
Please contact Jonathan Bawden or Claudia Kellermann at Portfolio Communications on +44 (0)20 7240 6959 or by email at jonathan.bawden@portfoliocomms.com and claudia.kellermann@portfoliocomms.com