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.