Monday, March 15, 2010

Africa- The next target across different industries


Why is Indian telecom giant, Airtel (For jobs in Airtel click here), so desperate to enter Africa? 
Airtel has attempted twice to acquire South African telecom giant MTN, but in vain. Now, Airtel is in talks to acquire Zain's South African operations, a UAE based company.
Taking health care industry, Godrej (For jobs in Godrej click here) has plans to enter African market through acquisition of Nigeria based skin-care firm Tura (Economic times dated 14th march 2010).
Are other markets like India, Australia, China- Saturating or is it the competition and the reducing profit margins that have forced such companies to move out? Or is it the first mover advantage from long term point of view?
Also, the positive developments are attracting different sectors which include end of civil war and economic development in Mozambique, upcoming democratically elected government in Nigeria and growing co-operation & integration between African countries.
In China, the government rules are so stringent that a company cant survive long or even innovate due to lack of freedom (Take the example of Google- how it was thrown). 

Microsoft has found unlimited potential in African continent as is visible from the CSR activities of Microsoft to enter this Knowledge based economy. (Microsoft's CSR activities in Africa) Through this long term strategy, Microsoft is creating demand by developing the continent and bringing it at-par with the rest of the world- A SELF CREATED DEMAND.

To support this trend, i would like to highlight that nine of the 20 fastest-growing global economies are in Africa, many with investment return rates above 10 percent. 
Africa's natural resources have started attracting many agro based companies who have found huge potential in Africa. The initiatives taken include African Union's huge agricultural development programme, AGRA's (Alliance for a Green Revolution in Africa) Green Revolution. 

3 comments:

Mohammed Ahmed said...

indeed africa presents itself has a huge untapped market to the world inc.

this year's soccer world cup too is being held in south africa

good writeup bro and brilliant flow of thoughts

keep writing!!! :-)

Anonymous said...

nice n infomative...well drafted...:)

Gaurav Bhatia said...

@Ahmed... Agreed, Soccer world cup will be a big booster to the marketers the way CWG are creating buzz in INDIA.

@Munish... thanks :-)

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Assistant Manager Sales, Videojet Technologies Ph: +91 98990 19193 Continuous Inkjet Printers MBA- Marketing & Finance, Mechanical Engineering

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