Doing Business In Sub-Saharan Africa

Many companies are beginning to set their sights on Africa for new business because of the improved political environments. Africa now is above average GDP growth rates and there is promise of more natural resources in a continent where everything still needs to be developed. Most of their growth has come from natural resources such as gas and oil. But growth has been slow to the economy. Doing business in the Sub-Saharan regions will still take time to development. There are still challenges that face new companies when doing business in the Sub-Saharan regions, the bureaucratic red tape, infrastructure issues like poor roads and unstable power supplies. The African continent is made up of very diverse economies. The regions still suffer from political corruption, instability, and reliance on exportation of goods. There are a total of 48 countries in Sub-Saharan Africa. The two regions of Africa have been separated since around 3500 BC because of the Sahara Desert is not a habitable region (www.essential-humanities.net). Countries often require new business to take an independent approach and effort when …show more content…
Although government has made some improvements the perception on transparency remains to be a problem for international analysts and large institutional investors. There are still risks for reputable investors and businesses that wish to take advantage of the growing investment opportunities in the continent. There is still political instability and sluggish growth that plagued the continent. Corruption is still active and reduces the amount of investment that goes into the production of goods and service in Africa. This affects job creation industrialization and economic growth. The World Bank reports that Sub-Saharan Africa still has some of the world’s highest levels of corporate bribery