Why invest in Sub-Saharan Africa

Sub-Saharan Africa has become one of the most attractive places to export Spanish products and more specifically, to carry prefabricated and industrialized housing. This is due among other things to increase their importance as recipient of foreign direct investment (IED) world (with a share of 5,7% in 2013, versus 3,6% in 2003). The number of FDI projects in sub-Saharan Africa increased by almost 5% in 2013. In addition it should be noted that sector road construction, housing and infrastructure across the continent will grow by more than 9% in the next ten years given the need for the new African emerging economies (the average of paved roads is 12%, much lower than the world average of 36%).

oportunidades_africa

 

It's not just a fad, since in the coming years the continent continue to experience strong growth. In 2014 and 2015 Africa will remain the second most dynamic area in the world after Asia. In 2013, the continent has grown 4% medium, a 1% more than the global economy.

The countries of sub-Saharan Africa in particular, will experience one of the higher global growth with the next forecast 5% in 2013 to reach near the 6% in 2014 (partly thanks to Chinese investments, the high prices of commodities exported by countries in the region and strong private spending of its inhabitants).

Furthermore, Evolutionis completely favorable demographic growth. It is the continent with the Middle East with the highest percentage of the world under 30 years in their people and experience the largest growth in all regions of the world (is expected to reach 62% of its population in 2030).

Moreover, some of its countries experienced one of the fastest growing in the world. For the period 2014-2015 the best prospects are for Ivory Coast, Angola, Ghana and Nigeria, with growth rates above the 6%. In 2013 Mozambique and Democratic Republic of the Congo, with growth exceeding the 8%, according to the International Monetary Fund. In 2012, a quarter of African countries grew by over 7%.

The main opportunities in Sub-Saharan Africa are in certain countries like Angola, South Africa, Nigeria, Equatorial Guinea and Ghana. The most attractive sectors are water treatment, Agribusiness, building, infrastructure and tourism.

Clearly, Sub-Saharan Africa's potential is undeniable. However, What can be done from Spain to link SMEs with Africa?

Our missions abroad, mainly Embassies, have as one of its most important missions contribute to the Spanish companies generate business destination. Therefore we aspire to greater economic diplomacy; the Ministries of Foreign Affairs and Cooperation and Economic must work together on the same line. The importance of Mark Spain in Spanish foreign policy and consular require a new approach to the diplomatic representations. For this, countries with the greatest potential will be prioritized and synergies that can provide the EU delegations abroad will take advantage.

However, Sub-Saharan Africa is not yet a Spanish business priority. The African continent is growing and we need to strengthen and support our companies as it already is, and will be more in the future, one of the pillars of global growth. Spain has to do with a number of government agencies and institutions Reference, as those provided by the Ministry of Economy and Finance (Secretary of State for Trade-DG Trade and Investment), CESCE, HOME Africa, ICEX and commercial offices, Chambers of Commerce and Cofides.

The ongoing work Notably Casa Africa at all levels. Promote relations with Africa to strengthen international and economic position of Spain, helping to build lasting relationships of trust with countries and major economic regions of the continent. Now it has become an important support for the internationalization of Spanish companies and the strengthening of the external sector.

Furthermore, is remarkable the work of the 25 Commercial offices ICEX Saharan Africa. It is an absolutely fundamental body on the outside and work is crucial for the Spanish company that land in any of these countries.

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Building on these organisms, we can accelerate our entry into the African continent. However, is still an unanswered question: Is the construction sector actually a booming market?

Many countries are developing and experiencing rapid takeoff of residential real estate and infrastructure development. Specifically include Algeria, followed about by Morocco. These circumstances have increased the demand for construction materials, as well as products related to this activity as marble. They have also favored the implementation or execution of construction projects in various Spanish.

For many Spanish businessmen who have set foot in this region, major investment opportunities are building roads and houses, as well as the necessary supply of building materials. For this reason I will Pree one increased demand in the sector 10% approximately in the next 10 years due to their need for heavy investment due to late compared to other countries.

 

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