COVID Continues to Slow Business Development Between the US…

The global pandemic caused by COVID-19 swept through country after country, leaving a wake of destruction. Unemployment rates soared in virtually every sector. General economic downturn has affected both the United States and countries within Africa. There are several ways that the Coronavirus has impacted business relations between these two territories, and some potential solutions that may unfold in the future.

Business Development Opportunities

Generally speaking, business development across the globe has slowed due to the COVID pandemic. However, emerging markets have suffered exponentially more than well established industries. Ongoing business ventures were halted in midstream as the scare of the pandemic grew. New opportunities steadily dwindled until they were nearly non-existent.

A glimmer of hope in the business development between the United States and Africa is the uprising of new investors. Entrepreneurs and developers who were well positioned before the crisis saw the opportunity to invest in the down markets and turn the chaos into opportunity. As a result, jobs are being created and communities are being uplifted despite pandemic conditions.

Food Service Industries

One major industry will survive despite natural disasters and other extenuating circumstances. Food service and agricultural opportunities have abounded in recent months. This urgent growth provided many chances for US and African business leaders to become partners in joint ventures.

Whereas many restaurants and delivery services will likely close their doors permanently due to COVID, new opportunities are still being created. Adequate food sourcing and efficient agricultural methods are sorely needed throughout developing nations. These needs present mutually beneficial business relationships between American and African business leaders.

Real Estate Markets

Real estate opportunities abound throughout Africa and US investors are eager to support the economy of African nations through real estate development. Aside from real property ventures, such as resort areas and office complexes, business relationships may also include agricultural lands. The buying, selling, and developing of real estate continues to create long lasting business partnerships.

Property values generally increase over time, and this potential increases when meaningful improvements are made. As industrial parks and office complexes are created, new investors and business owners are attracted to the area. Many developing nations within Africa have benefited from the responsible urbanization of their towns and communities. The growth encouraged by new businesses help spur internal business ideas and stimulate local economies.

Financial Services Groups

As new business opportunities move into an area, there is an increased need for various financial services. The banking industry presents a wealth of opportunity for US and Africa to merge interests. Investment opportunities both local and international provide a strong portfolio for all involved. Pension plans and other retirement plans are made available and even encouraged through favorable tax laws.

The idea of personal financial responsibility motivate individuals to seek out their own investment vehicles. These new interests within the community create multiple job opportunities as well as licensing and other education opportunities that would not otherwise be available in some local communities.

Despite the overwhelming sense of collapse that has affected the globe during COVID-19, don’t forget that Africa is incredibly resilient to economic distress.

5 Current Business Collaborations Between US and Africa

Investor relations between the US and Africa are continually presenting new opportunities for both parties. Certain industries grow more quickly than others, and many businesses are cyclical in nature. All factors considered, there are five general areas that provide great potential for success. Business development between US and Africa are likely to be centered around these industries over the next several years.

Private and public healthcare centers are a focal point for growing economies. They create jobs and encourage advanced educational opportunities within the community. Healthcare staffing agencies offer an easy way for local residents to gain experience in a particular field and earn hours toward specific certification requirements. Communities with advanced healthcare facilities are generally healthier both physically and financially.

Marketing Efforts

New and existing businesses require a few basic tenets to maintain successful growth. Marketing companies may not seem like a popular choice for this list, but they are a completely natural fit for emerging economies. Established businesses must create effective brand recognition in order to maintain their current market share. New companies definitely rely on marketing efforts to emerge and grow into a healthy state.

Consumers are changing they way they do business in urban and rural areas. They require consistent engagement and frequently express their opinions and preferences online. Successful companies will have a strategic plan to address these opinions and respond to consumer preferences. American and African business relationships can encourage productive marketing platforms for all local businesses.

Political Affiliations

Government and quasi-government agencies present unique business collaborations between US and Africa. Independent auditing and credentialing companies encourage ethical leadership practices. Many programs and ministries are more efficiently operated outside the political scope. Business partnerships between native and foreign entities provide effective balance and positive growth. Specific political affiliations may be open or resistant to change, but there are several agencies that will embrace business opportunities that impact local communities in a meaningful way.

Educational Institutions

Every successful nation offers vast and responsible opportunities for residents to receive an education. Liberal Arts universities, community colleges, and professional trade schools all provide sound educational choices for citizens of all ages. US investors and affiliates work with African leaders to increase these opportunities. They may provide financial support for infrastructure or create partnerships with well established international educational institutions that aid in credentialing new academic facilities throughout the African continent.

Natural Resources

The ever-present natural resource industry throughout Africa consistently provides a business opportunities for US and African entrepreneurs. Agricultural land development, including drilling wells, provides a valuable service for local areas. Responsible mining efforts create sustainable growth as well as successful mineral refining. The related processing plants and manufacturing centers offer longstanding business partnerships that provide jobs for skilled and unskilled workers. When these processes and applicable regulations remain local, more people ultimately profit. Funds reinvested in the community provide exponentially more opportunities than monies that are funneled through an outside corporate or government entity.

Major Points in History of Business Between US and…

Multinational corporations often look for business opportunities in developing nations. These partnerships generally provide equitable growth and simultaneous benefit for the company and the local community. A readily available workforce is eager to accept employment opportunities at a reasonable wage. Employers are equally motivated to hire local residents, often at a discount, and contribute to the community in which they operate. Many major US companies have successfully established a presence within Africa. A small sampling is discussed here to help you learn more before you invest.

John Deere

For nearly a decade, the John Deere company has been impacting communities throughout sub-Saharan Africa. Executive staff members operate in conjunction with local engineers and set up adequate office space in local areas. They have operated full circle, from research and development to retail sales, in areas like Kenya and South Africa. John Deere has created a market and continues to operate as a trusted advisor to both local leaders and foreign interests. Other markets throughout Africa have already expressed interest utilizing the existing relationship with John Deere to assist slow and vulnerable growers located in less populated areas in Central regions.

General Electric

General Electric is one of the first companies to recognize the potential for US business in Africa. Since beginning their ventures in Africa more than 120 years ago, General Electric officials have been cognizant of future opportunities. Their robust contributions and investments have provided support for infrastructure and education. General Electric engineers assist with designing and developing equipment for oil operations, solar energy supplies, and new engineering needs as they arise. The future is bright for new and continued partnerships between General Electric and African nations.

PepsiCo

The food and snack arm of global giant Pepsi-Cola is always on the lookout for new opportunities. Before purchasing Sub-Saharan company Pioneer Foods, Pepsi already had a fairly strong presence throughout the nation of Africa. From distribution chains along the Ivory Coast to retail connections throughout urban centers in West Africa, Pepsi has firmly planted roots in this rich nation. Although corporate executives are tight lipped about plans for expansion in Africa, many economists believe the food and beverage conglomerate is likely to consider manufacturing and distribution centers throughout Africa within the next few years.

Small Business Opportunities

In addition to the multi-national business entities outlined here, there are an unlimited number of opportunities for entrepreneurs to launch a business in or from Africa. Many established businesses are scrambling to create a presence in Africa, but small business owners recognize the value of partnerships between US and Africa. Historically, the United States prefers open trade agreements with friends of their friends. This policy is likely to encourage stability and support for other business opportunities.

There are endless possibilities in travel and tourism, agriculture, civil infrastructure, and manufacturing. Retail operations have grown exponentially, as have prospects in sustainable natural resource mining and preservation. Forward-looking entrepreneurs and analysts see a wide-open road for new business opportunities within Africa, particularly between the US and Africa.