Investment in North Africa

by Developed Africa 16. August 2013 09:00

 (not finished)

Investment in North Africa- 

Partly due to Egypt's stock exchange rising by 3% this year, there is a lot to be said for investing in North Africa. And a lot of activity is coming from China, as 2012 saw 3 North African countries among their top ten African destinations for Foreign Direct Investment.

China offers a different approach to development policy characterized more or less by the ‘trade not aid’ principle"

Examples of the North's ambitions and potential were reported by the Libya Herald earlier this year, for instance Tunisia is setting itself up to be the world's centre for renweable energy, Algeria is home to a growing small and medium sized business sector, and in a number of Libyan cities there are several SMEs that could grow into the regions biggest multi-nationals. 

Evidence of such activities and businesses across North Africa chimes with the report from Reuters' blogger Carolyn Cohn that despite uncertainties and disruptions within the region, 

international investors are seeking out well-run businesses in Middle Eastern and even some North African stock markets"

Not only this but investors are cleverly looking towards the youth as their future employees, and see the youth as a great, often untapped, opportunity source. This is what is needed in the North of Africa, especially following the uprisings which have left many young people unemployed and disheartened, by focusing new business and investment towards the youth, tension will be eased and economies will grow faster due to the vast potential available from employing the youth of Africa. 

Cohn also reports that investors have faith in business and investment despite the turmoil in North Africa, because they believe that

businesses are often able to carry on, regardless of political instability."

Businesses can still thrive and prosper in spite of difficulties in the region, because businesses are always needed, and business and investment is what will put the North of Africa back on its feet. Instead of being nervous of the instability in the region, investors need to be positive about the potential to help grow these countries' economies and to improve their stability. 

 

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