African Investments Have Only Three Viable Sectors

By Jeremy Carden

There have been more African Investments and foreign aid than any other part of the world as around three billion dollars has been poured into Africa. The African continent has always been the poorest of all continents and has in fact deteriorated even more over the last twenty years. Africa. 's production only accounts for two percent of the entire world. 's production.

Around twenty or more thousand professional people immigrate to other countries recently more so noted in South Africa. The African continent is bankrupt despite the billions of dollars that have already been invested and the reason for this is owing to the large debts as well as government departments being corrupt.

Over the last two years Africa has not shown a significant export market value as the agricultural sector has dropped a further twenty five percent and this is an area which has been seriously neglected over the recent years. The only feasible sectors for African investments states world economic experts is agriculture as the processing is ripe in this area for potential investors. Then there is also infrastructure and telecommunications which would bring good returns.

Sub Sahara Africa presents good opportunities as well as interesting insights with regards to mobile infiltration and 3G licenses as these countries are undeveloped but the market is saturated with particular reference to North Africa and South Africa. Only three networks are functioning and a mere one Telkom service leaving the market open to investors.

Morocco launched the first IPTV service in Africa and there is much scepticism as to how the expansion of WIMAX will impact the high service convergence characteristic of other African country. 's telecom sector. The telecom sector has barely been touched in Sudan and the overseas sectors are already pouring in huge sums although most analysts consider this sector to be under explored as there are growth prospects despite political uncertainty and decline in oil prices.

The infrastructure situation in Africa must also be viewed as an opportunity for African investments rather than a limitation. There are around three hundred million Africans that do not have reliable supplies of clean drinking water and millions more that don. 't have access to proper sanitation. Only four percent of Africa. 's water supply is used for the purpose of agricultural development as well as hydro electrical power, residential and industrial consumption.

The African continents inhabitant. 's life expectancy is falling rapidly as HIV is rife and accounts for approximately seventy percent of the globes HIV victims and over and above this forty percent of Africans is illiterate and in addition Africa has been rated the lowest as far as human development goes by the UNDP.

As long as investors are prepared to take risks there are numerous opportunities and return from African Investments as Africa is an emerging market as opposed to other markets which have been saturated with investors and the African continent does not have a very high level of competition. The potential of Africa has already been identified by a few countries which have realized that Africa is on the radar. Telecommunications, consumer products, banking as well as infrastructure is extremely attractive African investments for private investors. - 23222

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