The window is closing

The window of opportunity is still there for people looking to invest in Africa, although internationally there are fewer opportunities and investors are starting to look elsewhere, says Doctor Nkosana Moyo.

He was speaking at the Stanlib international investing conference in Gauteng recently.

Competition for business in Africa is growing, and as investors, people don't want to share information as this will increase competition for capital.

Having said that, Africa is complex- and potential investors should be sensitive to local nuances. He called on investors to challenge their colleagues, specifically those who enter the developed markets- like China and India- there is an understanding that research is needed. It appears that this is not the approach when it comes to African countries, as it is perceived as an amorphous mass.

He says there are four different sub markets- with complex inter-relationships, and diversity, and local sensitivities. The infrastructure opportunity is a challenge, from a business perspective, and he highlighted ICT as the backbone, and a particular sector- with huge pent up demand- witness MTN entering the continent and how well they have done.

Don't take a developed market model and transport it to the continent. Respect local culture, invest in people on the ground, and manage the relationships are essential. Understand that it is not just another market- understand it.

Turning to the USA, he says that interestingly the USA has undertaken that by 2015 it will source 25% of their needs from the African continent, in terms of industrial oil reserves.

The world needs something from Africa. He believes that this engagement bodes well for a capital mobilisation from the rest of the world. He also says that business relations with China may be controversial, but there is a demand, and if managed properly will be beneficial, to all parties. SA should celebrate and embrace this relationship.