Will Africa ever come to the forefront of business internationally?

[u/Snoo11149]

We have extroadinary talent, a huge population of youth and the resources.

I travel quite abit and have explored Africa quite extensively, predominantly for business purposes.

On paper it seems we have everything to succeed in coming to the forefront of business internationally, ofcourse we would probably have to do something about our corrupt leaders etc...

Before 2020 as a young man going with his dad to learn and assist him with his business. I would usually come across European companies and these days increasingly coming across Chinese companies (and a ton of them)especially in mining etc....

While we welcome and very happy that we are developing and have the correct environment for international businesses and investment.

What do you guys think is the reason we sitting with so much resources, the talent, the youth but even after all this we are still struggling with the basics (eg food security) when the world has used our inputs and have moved on to bigger things.

And my main question, when do you guys think this phase will end?and Africa will truly take its place on the global scale.

But on the bright side, in agriculture I'm starting to see many talents- especially in my own country South Africa.

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[u/LordGrovy]

Most businesses struggle to become profitable on their own market, so it's very difficult to reach the state where they can expand outside of it. 

European and Asian companies that you see are comfortable though constrained in their own economical regions. They can afford the lawyers and accountants to experiment in different countries. The only risk of failing is having shareholders unhappy. Bankruptcies are very rare. 

That's why most African companies you see expanding are government sponsored, e.g. Senelec in the case of my own country. They have expertise and room for failure. 

However, you have companies like Wave or Jumiaa trying the same, and surviving so far. Banks and insurance companies seem to be going well too. I am pretty sure there are more success stories than we hear, but they are few and far between. 

[u/Bakyumu]

The main reason we still struggle with basics like food security, despite having so many resources and talented young people, is how we trade with the rest of the world.

For a very long time, we have mostly sold raw materials like minerals and crops for cheap, only to buy back expensive finished products and processed food from other countries. That setup keeps wealth flowing out instead of staying in our communities.

Seeing more Chinese companies replace European ones in places like mining shows that foreign demand is shifting, but the underlying pattern is still the same. Outsiders coming for raw inputs.

Having resources and youth is great, but they cannot create wealth without the basics in place, such as reliable electricity, good roads, and cold storage for farm produce. Without local factories to process what we dig up and grow, foreign companies will continue to take most of the profit.

Africa will truly step into the global spotlight when we stop simply exporting raw goods and start processing them at home. Making trade between African countries easier is a huge part of the answer, because it allows local businesses to grow much larger without relying solely on outside buyers.

As the world needs our resources and agriculture more than ever, we have a real chance to set better rules, build our own industries, and keep the value right here at home.

Let's be clear though. None of this will ever happen if the business and regulatory environment continues to be broken. Without tackling corruption, protecting property rights, and building fair courts alongside a reliable banking system, businesses cannot grow or survive.

If investors and everyday entrepreneurs cannot trust the rules or protect what they build, our potential will remain just that: potential.

[u/illusivegentleman]

Respectfully, I will have to disagree with you.

Look at Ethiopian Airlines. Safaricom, KCB.

And since you are South African, institutions like Stanbic, Standard Chartered, the defense company Denel, can compete with the best in the world.

But on the bright side, in agriculture I'm starting to see many talents- especially in my own country South Africa.

With specialty products, sure. My country is a world leader on things like dairy, beef production, tea and coffee.

But it is hard to compete with the likes of China on essential foodstuffs. It is cheaper to import things like rice and maize from the other side of the world compared to growing them locally.