In the last 10 years, many economists have been signaling that the next market frontier will be the continent of Africa. This assumption has been justifiable by the attention the continent is getting frontier market analysts. McKinsey & Company conducted a micro level of its consumer markets. Their study was to find whether the African continent demonstrates adequate economic growth to consider it for economic expansion for investment. The result of their study, demonstrated that the continent in the year 2009 was growing fast. As a result, the economic size of the continent reached 1.6 trillion U.S. dollars. The African countries, beyond being agrarian base nations, have become attractive for retailing, telecommunication, banking and construction sectors. Of course, the growth has just begun and many countries which are seeking resources for their growth have begun to invest in the African continent in many sectors, but mainly in natural resources.After reading the full article provided, discuss how you would convince foreign investors, especially an American, that the region is ready for investment? In order to come up with a comprehensive and acceptable report, conduct:a) Risk analysisb) Choose market entry strategyc) Identify the sectors that are attractive and less riskyd) Forward suggestion on how multinationals can minimize their risks
In the last 10 years, many economists have been signaling that the next market frontier will be the continent of Africa.
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