Article Summary
Sirkin’s article “Africa’s Hidden Wealth of Business Opportunities” makes an effort to encourage investors to consider making investments in Africa. It begins by noting that while most of Africa has been considered unsuitable for investment in the past due to poor leadership and infrastructure some regions are making progress to change this perception. It goes on to suggest that the perception may have been fueled by the poor portrayal of the continent in the media. Also, it provides data from the equities market and other sources to highlight the often ignored statistics from the region.
Implications for Professionals Involved in Strategic Management
One of the major implications that the article appears to portray is the resilience of the African economy. In the report, the information provides evidence of the fact that the performance of African equity markets has been improving for a long period. In addition to this, the article goes a step further to indicate that this performance continued to be sustained even as the global economy went into a recession. This ability to continue growing despite a turn in global economic activity appears to imply that investors should give the region a chance and consider investing their money in the region.
In addition to this information, the article continues to provide data on the GDP of several nations within the region that are considered above the expectations within the region. These statistics provide would-be investors with information that can help them form a decision on the economic potential of the region. In addition to this, the article provides some information on the sales data of the major companies in the region.
To further stress the importance of this implication the article continues to provide information on the fact that globalization is a trend that has affected regions all over the world. As a result therefore the African economies and their populations are beginning to take steps to rise out of poverty. Based on this position the articles imply that it would be wise to begin changing perceptions about the continent and explore its potential for economic growth.
To reinforce this position the article continues to provide statistics that are useful in pointing out the potential and current position within various African equity markets. It indicates the performance in these markets in comparison with other popular markets and the fact that the big businesses identified in the region post large profits contrary to what the regional image may suggest.
The article also goes on to indicate that given the position within African politics one approach towards the market must include giving due consideration to changing cultural and political perceptions within the region. It notes that despite the favorable data from the region investors must be cautious owing to the underlying trends associated with the region. This states is because not everyone in the region is bent on change.
This suggests that numerous underlying concepts could deter potential investors from achieving their initial objectives. In line with this, the article provides some advice to investors suggesting that they should be prepared to build grassroots support. This position can be taken from the suggestion that the region requires additional knowledge to secure investments made. It would appear that the concluding implication of the article is that for the developed world to continue ignoring the region may be a serious mistake as globalization continues. This is about the trends that have seen the economies of some parts of Asia and Latin America blossom.
Work Cited
Sirkin, H. L. (2011). Africa’s hidden wealth of business opportunities. Web.