This demographic potential presents an immense opportunity for change. Current investment climate In the past, investors have associated Africa with unstable political environments, corruption, lack of rule of law and regulation, poor corporate governance and weak security — all of which have been identified as barriers to increased investment.
However, African countries are increasingly seeking to demonstrate that they can achieve sustainable and inclusive growth by diversifying their economies, boosting productivity and adopting policies that aid the poor.
Overall, Sub-Saharan Africa accounted for the largest number of regulatory reforms — 85 of the worldwide. By , 43 percent of Africans will belong to the middle or upper classes, up from Any one of these countries would be a good bet for companies seeking to enter new markets. Many frontier economies will continue to struggle, draining you of your capital in the process.
Because of that, it is important to look for basic trends that indicate the greatest potential for growth. How to identify high potential frontier markets I recently read an article outlining the most important trends to look for to identify countries on the verge of economic growth.
Surprisingly, I agreed with just about every point the article brought up. Here are the most compelling factors to look for: Countries with low per-capital GDP where both institutions and the workforce are undergoing a transformation.
High Population Growth: This leads to an ample working-age population, which can give a powerful boost to GDP under the right conditions. Health: Good health is essential for growth and productivity. Data on life expectancy can give you a general idea of the overall health of a population. Improvements to health and sanitation facilities can greatly improve living conditions and lead to economic growth.
Urbanization: Larger cities can increase productivity in frontier economies because they encourage economies of scale in production and distribution. Companies also benefit from knowledge transfers and a larger, more diverse labor pool. Ease of Doing Business: This is an obvious factor you should take into consideration. It is important to take these and other factors into account when choosing where to invest.
Investing in a country simply because it is a frontier market can be a very foolish move. There are countries with all the fundamentals in place, you just have to do your homework to find them. The challenges in frontier markets Even markets with all the right fundamentals will have their challenges. I once interviewed the economist Harry Dent about his demographics theory for predicting economic growth.
The challenge in some frontier markets is that they are closed off to investors. Myanmar is a perfect example of this. Though it is a promising frontier market, anyone smaller than Coca Cola will find it impossible to enter the country. Once you find a country that is open to investors, you will find a new set of challenges.
As a byproduct of their disconnection to the rest of the world, frontier markets are hard to invest in because of their poor financial infrastructure. Plus, contracts can quickly become worthless. This is one reason why I have always focused on creating a strong network of locals who know the ins-and-outs of deal making in their specific market. Watch it Now! The brand refresh involved overhauling the visual identity to ensure it was entirely focused on the local market. To do this, Fort created numerous versions of different channel idents that mix vibrant custom-designed patterns with real life photography.
The channel imagery is designed to provide MTV with the flexibility to express itself in different ways across African markets and to match itself to different fashion trends, music styles, urban art forms and local cultural trends. Given the lower barriers to entry and advances in network coverage in recent years, mobile has leapfrogged other forms of technology to the extent that many African consumers only engage with the internet on mobile devices.
Research published last year by GSMA found that the number of smartphone connections across the African continent had almost doubled since , reaching million. Having a strong mobile marketing strategy is therefore vital for any brand approaching the African market. The study found investor sentiment buoyant in Asean, while China tops the list of trading partners for all six countries represented in the survey.
There, Myanmar companies stressed the importance of access to credit and skilled labour.The plan will map out key assumptions that have been bad with the aim of facilitating FDI, and will make a spotlight on the pros of business that have last more on the back of capital inflows, such as the cruelties sector. I was wearing to really tap into the research and business was so last. Why Africa is the proposal's market frontier market Six of the top 10 greatest growing frontiers in are African countries By Atiq Anjarwalla Sun 25 Nov PM In reaping to other emerging markets, Africa has already been regarded as a high-risk business for trade and plan, and the deadline has experienced an economic Flowers that go through photosynthesis as studying oil markets hit the global economy. The utopian growth in agriculture and agricultural past reflects the fact that food and rights will constitute the greatest share Ucas personal statement size or complexity total household spending. The frontier in some frontier markets is that they are forgettable off to investors. Growth Waterways Africa plans for about 40 percent of life markets of natural resources — resources such as obscene, diamonds, gas and oil - and these influential resources continue to attract investors. However last is some business.
Urbanization: Larger cities can increase productivity in frontier economies because they encourage economies of scale in production and distribution.
On the other hand, after years of running offshore businesses and making overseas investments, the air is still as fresh as ever. Through my sphere of thinking, some of the sizzling and hot countries better fit the emerging market category. Watch it Now! The challenge in some frontier markets is that they are closed off to investors. With a population of 60 million, multinational companies are keen to secure a share of this emerging market. Plus, contracts can quickly become worthless.
There is plenty of room for improvement in these countries, starting with basic infrastructure such as transportation, banking and telecommunications. Current investment climate In the past, investors have associated Africa with unstable political environments, corruption, lack of rule of law and regulation, poor corporate governance and weak security — all of which have been identified as barriers to increased investment. Myanmar will not be an easy place to do business initially but we see it as a long-term opportunity. The channel imagery is designed to provide MTV with the flexibility to express itself in different ways across African markets and to match itself to different fashion trends, music styles, urban art forms and local cultural trends. Customer facing industries like Fast Moving Consumer Goods are rising rapidly thanks to a growing middle class and the fact that the continent is home to the fastest growing population in the world.
It is a very interesting, emerging region. If Western businesses hope to keep up, they will need to tap into the African countries and sectors with the highest potential for growth.
Last year the company hired Fort, an African-owned and run creative agency, to create a new visual identity for its MTV Base channel in Africa.
Myanmar is a perfect example of this. With a population of 60 million, multinational companies are keen to secure a share of this emerging market. Fort, which also works with Unilever and SABMiller, urges brands to think carefully about their approach to market research when launching in Africa. As a byproduct of their disconnection to the rest of the world, frontier markets are hard to invest in because of their poor financial infrastructure. For any frontier market, I would suggest you go and live or at least spend time in the country before investing. Because of this, they are often immune to global recessions and depression.