Safmarine is upbeat about trade prospects in Africa – and there are good reasons, says Africa regional executive Jonathan Horn. “Over the past five years (2002-2007), Africa has recorded strong economic growth – on average in excess of 5% per annum, a figure that exceeds general global growth percentages,” says Horn. And while growth rates in Africa's markets are expected to cool over the balance of 2008 and 2009, demand for commodities in particular is expected to continue, albeit at lower levels in the short term.” Investors are clearly finding Africa increasingly attractive, says Horn. “Safmarine has seen increased interest, from Asia in particular, and this appears to be largely motivated by the need to secure resources and provide a beachhead in terms of accessing a market that has until now been largely untapped.” The investment climate will largely determine future growth prospects. “Essentially being competitive with other emerging economies from a risk/return perspective will result in increased growth for the continent. “An attractive investment climate will encourage industries to develop manufacturing, production and, potentially, service facilities in Africa. It will also help reduce costs, increase competition and improve supply chain-related infrastructure.”
