Africa is not only an emerging market anymore, but it is quickly turning out to be one of the most important areas for world business operations. The spectrum of industrial activity has rotated towards Africa from sourcing and manufacturing to IT services and outsourcing as the multinationals realise the long-term benefits of Africa in terms of growth, resilience and even innovation.
Cost Advantage with Growing Quality
Cost efficiency is one of the principal reasons why the multinationals are going to Africa for their operations. Businesses in Africa can lower their costs because of the prevailing low wages, the developing infrastructure, and the government policies that are favourable for trade; however, there is no compromise on the quality of the products and services. A significant number of African countries have now attained the quality standards accepted worldwide for manufacturing and services.
A Young and Skilled Workforce
Africa has the world’s youngest population, which is a significant factor in the talent pool ready to power the global industries. African professionals are to a great extent present in IT services, customer support, engineering and creative industries because of the access to education, digital skills and vocational training that are getting better and better.
Strategic Geographic Position
Africa is in a location that gives it a unique advantage. It is put in between Europe, Asia, and America, which means the continent can shorten the shipping routes and mobile-compatibility in terms of time zones. This quality makes Africa an ideal partner for strategies of both nearshoring and offshore outsourcing.
Digital Transformation Driving Growth
The adoption of digital technologies at an unbelievable speed is making Africa a different place for business. Among the sectors impacted by this change are fintech, e-commerce, cloud services, and digital work, which altogether made it possible for the world to be in partnership with Africa in no time. Companies have the luxury of running their outsourced teams without any interference, even if they are located across borders.
Government Support and Trade Agreements
A good number of African countries have put in place a system of steps that are meant to lure foreign investments into their lands through granting tax rebates, establishing special economic zones, and relaxing the red tape. This is mostly done through government efforts like the African Continental Free Trade Area (AfCFTA), which effectively makes Africa more attractive for global sourcing than ever before.
