2007 was a banner year for Africa, Africa enjoyed unprecedented growth in telecommunications, financials, and consumer products. No longer does Africa have to depend on the west for trade or aid. Africa now, more than ever has many opportunities for trade with other emerging markets.
For the first time ever, emerging markets are collaborating, partnering and sharing intellectual ideas. The Brazilians are collaborating with Africans in ethanol and other Biofuels, Indians and Chinese are buying world renown brands (ex. Lenovo, Jaguar/Land Rover). India outsourcing providers are building BPO capacity in Africa. The Chinese are building massive infrastructure projects all over the continent.
10 years ago the West mainly dictated how the world ran. The world's major currency was the dollar, and the major financial and commodity markets were only in New York, Chicago, London, and Tokyo. 10 years later we have Asian/Middle eastern markets providing capital infusion to the west. Also, Kuala lumpur, New Delhi, Beijing, Abu Dhabi, Lagos, Accra, Nairobi, and others are becoming the new financial cities.
Despite Africa's great success in 2007, how can it grow in 2008 and beyond? That answer lies in trade and partnerships. Emerging markets have mainly grown because they are providing services and resources to wealthier markets; mostly US and Europe. There will be a time when some services and products from Brazil, Russia, India, and China (BRIC countries) become too expensive to produce or service. Africa has to position itself to cater to these BRIC's, and other world markets.
India is facing a turnover and quality problems with it's BPO sector. Many Indian outsourcers are starting to build capacity in Africa. Everyone knows China is taking resources from Africa back to China for finished products then selling it back to Africans. The Chinese are starting to realize it's cheaper to make finished products in Africa then shipping them from China. Also, the Russians, Middle Easterners and many private equity players are looking at investments in Africa.
Despite the mortgage crisis that is effecting the west; this could be an opportune time for investment in many emerging markets. Pension funds, mutual funds and insurance funds that invested in mortgage back securities got burnt and will keep getting burnt until they liquidate their holdings in these securities. Some are investing their monies in emerging markets, and I'm sure some are looking at Africa for investment.
To learn more about this author, visit Nii Simmonds's Website.
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Nii Simmonds
(Visit Nii's Website)
Nii Simmonds is founder of NAFRICOM, a
non-profit trade association for IT
Software and Technology Services industry
for Africa and a blogger on African
development. Mr. Simmonds is also a
Co-founder of EmergingictGroup, a global
ICT research, training, and
advisory/consultancy. Under Mr. Simmonds
leadership, his organization NAFRICOM
organized the 1st annual 2003 Ghana
Outsourcing Conference.
Through his experience working with many
African oriented organizations in the
field of Information Technology,
development, and globalization, Mr.
Simmonds has become a leading speaker and
presenter on African development, ICT
policies, outsourcing/BPO market in Africa
and other emerging markets, social
entrepreneurship, technology education,
and Globalization. Professionally Mr.
Simmonds is a consultant specializing in
corporate finance, globalization, business
strategy, and outsourcing.
Mr. Simmonds has been acknowledged for his
research in globalization and offshore
market by Mckinsey, IBM Global Services,
AT Kearney, Keane, Wharton School,
Harvard, Government of Ghana, Ghana
embassy, Smeal College of Business,
Harvard Business School NeoIT, ITESA,
Summit Circuit, Bloomberg News, Wall
Street Journal, Avaya, Affiliated Computer
Services (ACS), Data Management
International and many others.
Mr. Simmonds got his B.S. in
Management/Finance from Smeal College of
Business at Pennsylvania State University
and a minor in Information Systems and
Statistical Analysis. Mr. Simmonds holds a
Business Process Outsourcing Master
Certificate from the Wharton School.
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