Is Africa worth investing in?

africa Pictures, Images and Photos When looking for a new market the world is bigger than ever. Countries that have been invisible from the viewpoint of a business, especially those selling consumer goods are now rapidly growing and demanding all kinds of products. Africa is one of those places. However, it is still an afterthought in the minds of most retailers and distributors because Asia and Latin America are further along in their emergence.

However, Africa has a population of about 1 billion people that are relatively young in age on average. Although they obviously do not have the same amount of money as many other markets, this is something that is often misunderstood. The types of products that sell well in Africa are not always as expensive as the ones in other markets. For Africa, a lower price point is more important than quality. This allows for sufficient margins even with a low retail/wholesale price. In addition, many costs of doing business in Africa are lower than other places. Real estate is generally less expensive, as are employees.

These factors all need to be weighed carefully when looking at Africa as a possible next step in expansion. The key to success in selling goods to Africa is looking closely at what products to sell. The demand for the basics is in high demand in Africa. Things like clothing, food and basic living products like pillows, as examples are good items to think about. The other key to succeed in Africa is to partner with an established company there. Infrastructure is not always reliable and there are many borders in Africa that need to be crossed in order to reach everyone. This, along with a strategy and channels of distribution are where the partner will help a lot.

Africa can be a very good market for an expanding business. It should not be overlooked just because of the assumption that no one there has money.