In his TED talk, Euvin Naidoo addresses the topic of Africa as a developing continent, its weaknesses, and its strengths. His goal is to discuss the reasons why investing in Africa is a great decision. The rate of inflation is decreasing significantly. In the past two decades, countries that include Nigeria, South Africa, Zambia, Namibia, Mauritius, and Egypt have experienced a significant decline in inflation rates (Naidoo, 2007).
Moreover, their currencies are undergoing a stabilization phase against international currencies. The economies of African countries are growing rapidly. For example, Nigeria has been projected to rise to the top 20 economies across the globe by 2020 (Naidoo, 2007). Guarantee Trust Bank, a Nigerian company, offered its first Eurobond without the aid of the government. This is a sign of foreign investors’ confidence in the economy of Nigeria. In addition, its banking sector has been strengthened by the reduction in the number of banks from 80 to 25 (Naidoo, 2007). Nigeria is the major supplier of oil to the United States ahead of the Middle East.
Egypt is in the process of launching a $2.8 billion industrial zone to diversify from oil to other sectors including textiles and petrochemicals. The agriculture sector is embracing organic standards in production, and companies are replanting and redeveloping forests (Naidoo, 2007). The poor infrastructure in many countries and the rising energy needs are opportunities for investment. The stock markets of Egypt, Kenya, Nigeria, and South Africa were among the best performers across the world in 2015 (Naidoo, 2007). Africa is providing diversified opportunities for investment, and it is the responsibility of foreign investors to plunge in and take advantage of the new era in Africa’s growth.
References
Naidoo, E. (2007). Why invest in Africa. Web.