Investing in African Nations!

By: Anne Catherine

In the modern times one of the most important and effective ways of strengthening the world economy and the individual economies, is to make strategic collaborations. Collaborations, coalitions, mergers, and takeovers are the go of the day. The countries are trying to reap mutual benefits by making trans border business. These new economic strategies have helped the countries to overcome their weaknesses and liabilities. By making contracts the countries are benefiting themselves by making good the liabilities and shortcomings of each other. This is a method that also proves to be cheaper as compared to the imports.

It has been seen that the developed countries of the world apart from coming into coalitions with the fellow developed countries, are also interested in making businesses and deals in the underdeveloped and the third world countries. Most of the resources of the third world countries remain unexplored and underused as a result of lack of technology and means. The developed countries take interest in these resources and they are also taking active interest in the market trends of these poorer countries. The flocking of multinational companies in the Indian market and quite a few remarkable deals made by the concerns of the country is illustrative of the increasing interest of the western world in this country. They have seen increasing prospects in the Indian market. The best part of the bargain is that the Indian middle class is prospering and the western world is getting immense benefits at a remarkably cheap rate. This factor is basically applicable to the boom of the IT field a few years back. The prospects are still high though the boom has stagnated. The IT services like , and are available at a cheap rate if an Indian software company is hired. The interest of the western world in the Indian market denotes the coming in of dollars which apart from strengthening the middle class is also adding to India's foreign exchange.

As the lucrative Indian market magnetically attracted the western world likewise the wealth of natural resources in the Dark Continent of Africa is pulling in the attention of the western world. Most of these countries have terrain and land that are not effectively used by the governments of the countries. As such the foreign countries are aiming to buy off the used land and grow grains in those lands. In Mozambique in the year 2007 around 110000 square kilometers of land were bided by interested foreign investors. Likewise in Tanzania also the foreign investors are keen on buying lands for cultivating biofeuls. The country was also gung ho about the prospect. However, the current economic trends have landed the country in a fix. The grain prices are rising due to inflation and the government is in two minds whether to utilize the land for cultivating grains or biofeuls. Another problem with the country is that the offer of cultivating biofeuls is tempting as the country is an importer of fuel. Over and above that the land that the foreign investors are interested in, only a meager 6% is currently cultivated. Hence it seems that the country will benefit itself by inviting the foreign investors.

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