Mixed Fortunes Blur Idea of Africa’s Collective Rising

Given the challenges of adapting to the unique market dynamics in the different countries across Africa, companies looking to establish operations in multiple countries need to carefully consider the composition and capabilities of their executive teams so they are well positioned to manage the complexity of responding to the various contexts.

After a quadrupling of foreign investments in Africa and a sustained annual growth of more than 5% over the last decade, the phrase “Africa Rising” emerged as a signal of shifting perceptions about the continent and drew the world’s attention to the numerous business development opportunities in Africa.

Africa’s growth, however, remains more disparate than any other region in the world. Challenges differ from country to country and investors who have recently flocked to the region are finding themselves on a steep learning curve. The regional cooperation, infrastructure development, and political reforms needed to diversify these economies and even-out growth on the continent are taking longer than expected.

Despite consumer-driven gains, foreign direct investment has leant heavily towards resource rich nations. Bigger economies like South Africa remain far ahead of smaller economies and companies with a strong initial presence in South Africa have had mixed success in expanding their footprint into other markets across the continent.

Read more: http://www.reuters.com/article/2015/03/06/africa-growth-idUSL5N0W52EW20150306

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