Africa is rich and multinational and international companies are making a killing, a new international report shows.
One of the biggest winners who have turned Africa into a golden pot is British companies who have made bigger profits investing in Africa than in any other region of the world.
This is according to a new report from the Overseas Development Institute (ODI), which urges firms to seek profits on the continent rather than seeing it as a place to do charitable work.
“Young population, growing middle class, and planned industrial growth make the continent a great place to do business.” the report authors say.
Boosting 1.2 billion people and eight of the world’s 15 fastest-growing economies, the ODI says Africa offers world-beating returns on investment.
The report, which was published as Britain formally left the European Union on January 31, looks at investment by British firms in Ghana, Kenya, Nigeria and South Africa.
In 2019, for instance, the rate of return on all inward foreign direct investment in developing African countries was 6.5%, higher than Latin America and the Caribbean whose rates stood at 6.2%.
Africa’s return on investment was also higher than the 6% return in developed economies.
The two-day event held at the Black Sea resort of Sochi saw more than 3,000 delegates attend and sign deals as well as discuss topics from nuclear technology to mineral extraction.
British companies believe they have an edge against their rivals in the field of technology with the UK Space Agency backing satellite firms that offer services to African farmers, such as PRISE, or Pest Risk Information Service.
Similarly, Boris Johnson's government is set to invest over US $65.7m into renewable energy projects in Africa, as it works with selected African countries to develop sustainable energy sources.
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