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NEXT ASEAN: The 2nd Group of Emerging Nations

The African Market and Its Future

Johannesburg, South AfricaWhile Africa is still dealing with many problems that include political crises and poverty, it is still an area with many possibilities. Many issues and problems mean that there is much room from improvement and Africa has shown a very pro-active attitude towards the building of infrastructure for the improvement of living environments in the region. Africa and China have already moved into the region and Japanese companies will too see that the possibilities in Africa are endless once they set their sights on the region.

The Charm of the African Markets

①Abundance of Resources (Minerals as Materials for Manufacturing)

Africa retains an abundance of resources that include natural gas, oil, and minerals/ore. This "resource paradise" is thought to be the "Next China," with the world hope to see it as a future foundation for manufacturing.

②Youngest Population Composition in the World/Expansion of Cheap Labor Market

Africa is projected to see the biggest expansion in terms of workforce after China, a fact backed up by the sheer amount of young people under twenty at the present. There is no doubt that the expansion of the labor force couple with the gathering of companies from around the world in African countries keen on improving infrastructure is going to turn the region into one of the biggest labor markets the world has seen.

③An Investment Environment Where Cost-Performance is Strong Even During Downturns

In the unprecedented financial crisis of 2008, most markets in the developed world experience a huge downturn. However, in Africa investment activities were quite lively. A cheap labor force and abundance of resources are some of the factors behind why Africa can maintain a strong environment for investment even during a world-wide economic downturn. There is no doubt that now is the time for Japanese companies to utilize the strengths of their globally acclaimed manufacturing prowess.