[BLOG] Africa's desire for investments
05-03-2012 06:38:09 | by: Administrator | hits: 2601 | Tags:

The key to make Africa prosper and increase investments is to have leadership development among African leaders. Also to create an environment that will make businesses invest in the continent with high confidence.

African leaders must look beyond political and economic ideology and create an environment where the world will bid competitively for its resources but within the context of improving Africa for and with its people.


The equation that provides Africa with an avenue to develop its natural resources for the world and, more important, for the benefit of its people lies in "The world needs Africa and Africa needs the world”


In view of this, industry and governments must come together with open minds and an understanding that true partnerships reflected a two-way commitment to understand each others needs and the willingness to find solutions that were flexible enough to deal with our complex world.


African governments must be willing to understand the need for certainty when making investments, in addition to understanding input cost structures and the extraordinary pressures that face companies working low margin projects.


In line with this, industry must be willing to put up flexible revenue models, particularly when commodity prices exceeded scope of resource revenue models and/or when, in rare cases, margins generated extraordinary returns while limiting local upside participation.


Take the mining sector for instance, the world needed the mining sector to support life and ensure that there was development in an environmentally sensitive and sustainable way.

I believe Africa will become successful when it comes to the business sector and providing aid to the region. There will be  a lot of Investments opportunities since the resources that will be handed down to them is accompanied with assurance that their ventures is far from risks brought by humanly conflicts like tribal wars and corruption in the government.


The business environment in the region when is improved will help its people while a business is on the progress. African governments will be required to take good care of its investor so they can address the needs of their people. By assuring every businesses with security against threats, the future will look brighter for both parties.

 

This article was originally posted on Southern Africa Business Communities

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