Africa is said to be the “future continent” for the world’s leading job market availability and international hokiku88 investors. In addition to cooperation in terms of trade, Africa is an investment site targeted by various countries, mainly China, followed by Europe, India, France, the United States of America, Indonesia and others, because of Africa’s abundant natural resources. However, Due to the Covid-19 pandemic, the FDI (Foreign Direct Investment) has put the investment grade from African countries to the lowest level. Thus, it will be difficult for the country to overcome its economic recovery at these times.
During the last 25 years fighting poverty
the African continent is now continuing to experience difficulties in its economy. With an average of 2-5% reduction in state income, especially in the tourism sector, reduced remittances, decreased use of air transportation, etc. Therefore, what are the future prospects of the African country in terms of the global investment in the following years?
- At this point, several countries in Africa have entered the new normal. For instance, Tanzania, Rwanda and Mozambique, they have opened flight routes since the middle of May 2020 and their economic, social and cultural activities have returned to normal although they still carry out health protocols.
- There is a debt repayment suspension and tax reduction to save the economy of the African countries.
- For that reason, countries that always cooperate with Africa should still maintain their economic cooperation. To do this, they should consider investing in African countries which in turn will increase exports (automotive products, palm oil, food and beverage products, etc.). Therefore, helping the economies of the African countries by opening new jobs, it will ultimately increase awareness, demand and purchasing power of the products.
- Involving private investors— Since, several banks in the developing countries have indicated the possibility of a bailout, in this case, banks can no longer be fully relied on as the main source to finance investment. Therefore, relying on private investors will help because besides being an investment area targeted by various countries, the African continent is also a good place for exporting in the global market in the years to come.
In the meantime
some technology industries start to glance at the potential market of the African continent even during the pandemic:
- Chinese participation— To build China’s trade route infrastructure globally, mainly the China-Africa Research Initiative cooperation will restart the Belt and Road Initiative.
- Facebook participation— Facebook is still planning to build an underwater ring (underwater data cable) across Africa, mainly during the pandemic for online school needs or to stay connected with their friends and families. The goal is to reduce bandwidth costs, and make it easier for Facebook to hook up more users on the continent with the project named Simba.
- Google participation— google will soon release a startup program (launchpad) called Google for Startup Accelerator Africa.