Africa Rising Book Review
Introduction
For a long time, Africa has been one of the continent overlooked, but like other foreign emerging markets, it has several business opportunities. Vijay Mahajan, the author of Africa Rising, highlights some of the great business opportunities despite being a third world continent. In his book, he reveals how several global companies have utilized several occasions and succeeded in investing in Africa despite facing several challenges. He also presents how local entrepreneurs and foreign investors have collaborated to build a profitable and sustainable business in challenging locations. He reveals how Africa itself can succeed based on its tremendous wealth .thus; the book highlights some of the unique wealth Africa holds, which makes it a unique continent for future business opportunities.
Book preface
In the first chapter, the author presents his experience having traveled across other continents like Latin America and the Middle East as he compares to his involvement in Africa and admits to having been guilty of misjudging the potential this continent holds. He reveals that Africa has always been presented from a different perspective, which is more of a continent that needs to be rescued because of the political challenges. However, Mahajan states that the continent has been overlooked in terms of its consumer base. Thus, traveling o Africa has allowed him to enhance his knowledge from an economical perspective .thus, he reviews Africa through a consumer lens as he hopes to change the perception is readers to look at Africa and the best emerging market full of wealth and great opportunities.
In chapter one,
Mahjan reveals the situation in Zimbabwe in 2006, where the inflation rates had reached its peak. During his visits, it was more like a ghost town, with many businesses being closed down. He could not easily access car rental services nor find gift shops. The country could only manage four flights a week. The tourism sector was affected, essential commodities like gas were scarce, with the power supply being unstable.
He gives an example of Innscor, a fast food restaurant that started in 1987 as a joint venture with Chicken Inn. This was the first of its kind in the country. With time, such business has grown, and the restaurant has since expanded to become an international entity. What initially started as a chicken in quickly transformed into a crocodile farm. Innscor started as a small tourist business and has overcome all the political and economic challenges to become the leading distributor of crocodile meat and skin. The restaurant sells its products in the United States and Europe.
In east Africa, countries like Kenya are known for producing cooking oil. Oil companies like Bidco oil refineries provide a variety of local products like soaps and oil and command more than 52 percent of the market share. Companies like Coca-Cola have are well established in Africa; they sell more than 93 million beverages each day. Coca-Cola revenue has grown to about $4-5 million, a profit they generate daily. This explains why they decided to move its headquarters to South Africa from Canada. Similarly, countries like China saw this early opportunity opportunities had taken advantage of this opportunity. In many parts of Africa, China Mart is located everywhere. Trade between Africa and China has generated more than $10 million in 2000. In 20o6, China recorded more than $55 million profit, .which is expected to increase up to $100 billion by 2010. There is a possibility that Africa can become China’s leading trade partner replacing larger nations like the United States.
Chapter 2
Mahajan reviews the wealth found in the African continent, making a comparison to nations like India. According to Mahajan, Africa is ranked as the poorest continent in the world, but it has unique wealth as compared to India. Among the 53 African nations, .the average GNIC measured in 2006 was about $1,066; he is more than India’s GNIC of $200. Issues such as corruption are a significant challenge in several countries. Nigeria has lost more than $400 billion to fraud since its independence in 1960. Corruption makes it challenging to operate in most African countries as compared to Europe.
The African economy continues to grow as the future looks promising for businesses. Africa’s GDP has increased tremendously, with inflation dropping from 6.6%. African has a young and robust population. The African population is projected to grow, with 900million new people being added by 2050. Some of the opportunities in various sectors like education, entertainment, sports, and youth-focused initiatives make Africa unique. Currently, Africa is the key market for mobile phones; there are 130 million mobile phone subscribers. The mobile phone is a device that can be used to connect businesses across the continent. Africa is a diverse continent. It comprises of different religion, more than a third of the world’s Muslim population resides in Africa. There are Christians in 19 African nations; all there are some of the factors that positively influence business. For instance, in northern Africa, during the holy month of Ramadan is the best business season.
Additionally, many international banks have tailored their products to suit these differences. Most banks offer special services targeting Muslims. Mobile companies market their products during different seasons. Coca-Cola has succeeded in selling its products by providing meals and snacks to those who are going home to break their fast during Ramadan. Movie theaters and television stations also profit from the African population who loves entertainment
In Chapter 3
Takes a look at what is called Africa Two, which is a 400 million, huge market waiting to start. The people who live here aspire to have a better standard of living by educating their children and purchasing consumer products. As Africa Two proliferates in wealth and influence, companies recognize that this is their future. “The Good Old Days” is a discount store that targets Africa, Two consumers. Even though the stores are smaller, the market potential is more significant. Nearly 5,000 customers per day were being served in 2006, which put them on track to reach sales of about $6 million per year. The African market overall is a study in extremes. On one end, there are resources to spend at the high-end shopping malls, and at the other, there are Africans who are struggling to survive.
In Chapter 4,
The author talks about how the market is organized. Most retail sales in Morocco are made through “handout,” which are the 80,000 small neighborhood retail shops. These stand out from the competition because they have a close relationship with their customer and offer credit. When a worker is picking up something on the way home, they can tell the owner to put it on their confidence, which is also available to all members of the family without interest. However, the African market is still informal and disorganized. Yet, the secondhand market has created a growing opportunity. Most of the worn clothing from the United States ends up in Africa, which is, on average, 68 pounds of clothing per person each year. The secondhand market for cars, clothing, tires, electronics, and household items in more than $800 million in Nigeria alone. The secondhand market is an opportunity to create cheaper new products. The generic drug market is also developing rapidly. By 2006, the pharmaceutical market in Africa was about $9 billion in comparison to $6-7 billion in India and $12-15 billion in China. The opportunities that this market provides have attracted the interest of many global companies who have an interest in providing low-cost pharmaceuticals to developing markets.
Chapter 5
Reveals the weaknesses and challenges in the infrastructures in many African nations. The book highlights some problems like shortages of fresh drinking water, electricity, and medicine. These are caused by a lack of proper support and proper planning. Many organization does not like operating in areas with difficulties. This makes others view Africa as a needy continent that continually needs help from the outside. However, such people have failed to look at Africa from a business perspective. Africa should not be looked at as a charity case but should be viewed as a potential and the most significant market. Other parts of Africa are well developed; for example, In sub-Saharan Africa, more than 700 million people can access essential services like electricity as compared to 38 million people living in Poland. Despite lacking some necessary infrastructure, South Africa is more stable because of its unique minerals like diamonds and gold. However, the country needs to improve on its foundation, many people still lack basic needs like sanitation. In the rural and high-density areas, lack of cleanliness is the major contributor to diseases and disturbs the quality of life. However, entrepreneurs have tried to help this by providing mobile toilets. Air pollutions are one of the growing concern as the population continues to grow. While society continues to move forward since the infrastructure is older, it can take a long time for it to catch up to the modern-day. It shows the gaps in economic and social development, yet they can be filled. Business opportunities can be created by entrepreneurs to help to meet these market needs in the future.
In Chapter 6,
The author talks about the many opportunities in Africa’s youth market. 41% of Africa’s population under the age of 15, compared to 33% in India, 28% in Brazil, and 20% in China. Africa is one of the youngest markets in the world and is ahead of any other region of the developing world in youthfulness. The smaller elderly populations reflect the lower life expectancy, which is 53 years across the continents and 49 in sub-Saharan Africa in comparison to the age of 75 across all of Europe. With a younger generation comes a different view of the world, which can help to transform society in the future. Youth are drawn to music, which creates a business opportunity to connect with the youthful market. In Egypt, 30% of the 250 channels are music stations and encourage viewer participation by allowing them to choose the music through text message. Sports are also a significant avenue to reach youth. Companies can use sports players to promote their products, and significant events like the World Cup Games helps to bring in visitors, which brings in revenue.
In Chapter 7,
The book presents some of the unique opportunities focusing on media and entertainment. Advanced technology has contributed significantly to the African economy.
Cell phones and other media like satellite, radio, and the internet have enhanced communication and improved connectivity. Film production in Africa has put Africa on the global map. For example, Nigeria has become the third-largest film production industry. Nigeria enjoys an estimated revenue of $200-300 million. About 2,000 films are put out each year in several parts of Africa. Also, TV shows have become popular in Africa, with television stations airing local content through hundreds of channels. This has dramatically improved talents in Africa. Many Africa actors and actresses have made a mark in Hollywood thanks to the local television exposing them.
Cell phones are being used to help improve health, transform agriculture, and for advertising. In Rwanda, cell phones are used to send reports directly from the field, which allows for tracking HIV/AIDS patients and covers a total of 32,000 patients. It helps in agriculture by giving farmers access to pricing and negotiations. In advertising, Guinness used cell phones as a way to get invitations out rather than using a postal service, which helped to make it more efficient. Print and online media are also expanding across Africa.
Chapter 8
Reviews how African as a Diaspora has several unique opportunities. The book highlights how huge companies have recently invested billions of dollars in Africa. Such investments have boosted the economy, and such investments have brought about developments in many parts of the continent. The growth of tourism has increased the African economies due to its unique features .as a result, many international hotels have invested in Africa.
In conclusion,
Mahajan sums up his book using the African phrase Ubuntu, which means coming together to emphasize why Aica is the best emerging market. He strongly advocates for Africa as he believes that many countries have overlooked it, yet it has unique resources that can enhance its economy. By providing a vivid picture of the African market opportunities, Mahajan believes that Africa is among the fastest-growing economies with untapped opportunities. He describes the world “Ubuntu which means “I am because you are” as a phrase to remind readers the spirit of togetherness which is critical in the success of any business
Besides, he reveals that Africa is the leading tourist destination because of its wildlife. More and more people are focusing on Africa because of its unique art, music literature and different forms of entertainment .this give Africans a unique identity
Mahajan presents a compelling argument to justify why he thinks Africa has the potential. For example, he cites its population of over 900 million as one of the advantages. Apart from the community, Africa’s abundant natural resources present varied business opportunities across a wide range of sectors. He also mentions how multinational companies are now investing in Africa because they have seen the potential benefits. Most of these companies have heavily invested and built a strong market position in the region by targeting African consumers. Mahajan is not surprised that many African companies are focusing more on investing in the content and have succeeded in helping improve the economy. He also notes with concern that these companies need to do more to create products that meet the dynamic needs of the local consumers. He further believes that education plays a vital role in accelerating the economic growth of this continent. Africa needs to invest more in school and focus on nurturing individuals with technical skills and business knowledge to improve in its economy.
His book highlights these opportunities for consumer goods and the potential of doing business in Africa, which for him, is much higher than most companies have failed to realize. Mahajan believes that companies having appropriate business strategies and are genuinely committed to improving the quality of life of the local population can relay benefit from investing in this content.
Africa Rising is among the essential pieces of literature that have put Africa to be acknowledged for is a contribution to the global economy. The book presents Africa from a positive perspective as it encourages all business entities and even charitable organizations to work together to build this beautiful continent. Mahajan also acknowledges the uniqueness of this continent and the importance of the communities, which is the critical pillar for its growth.
He believes that Africa still needs charitable organizations to help in an absolute crisis; however, the business has the social responsibility to uplift this continent out of poverty. He calls for company leaders to find a better solution in addressing some of the social issues that have been persistent in this continent. Mahajan describes his excitement in seeing the precious resources that drive the African economy which, when combined with the positive mood displayed by the people, makes it’s a great market. By telling his story from a marketing perspective, he gives a beautiful impression, so Africa terming them as real entrepreneurs who only needs a little boost to move forward and compete with other continents. He cites the critical role played by Chain and India, which he believes has dramatically helped Africa boosting its economy.
The book reveals valuable lessons about Africa; for a long time, Africa is portrait as a continent struggling to sustain itself, but in reality, it is rich with resources that have not been valued. Even though Africa is underdeveloped, it has the potential to become a prosperous continent if given the right ingredients. Africa has many opportunities that businesses can partake of and prosper. Africa can borrow a lesson from Hollywood to produce films that are locally consumed. I would recommend this book too many people interested in investing .the edition is an eye-opener as it offers better insights about future business opportunities that are rarely presented to the public. I enjoyed reading this book, and it has helped me see Africa in a new way.