Africa Digest : Trends and issues in business Vol. 14

Abstract

The Africa Digest is a fortnightly e-newsletter scanning the key trends in the macro-environment and industry to promote knowledge and raise understanding of business in Africa. This issue explores: 1. Trends in Financial Services - The financial services sector in Africa exhibits several recent trends. In some countries, an increasing number of banks have pan-African ambitions, while in others we see steady consolidation as larger banks relentlessly acquire smaller ones. 2. Trends in Retail - Retail activity in Africa, which began with so-called spaza shops, also known as mom-&-pop stores, now extends to sophisticated retail chains that bring the best of overseas and local goods to consumers. South Africa is a country with a mature retail scene, especially for retail food. A number of South African retailers, along with others in the continent, now target other African countries for expansion. Global players such as Walmart and Carrefour, both of which recognize the massive potential in Africa, have joined them. However, these expansion drives face severe challenges. 3. Southeast Asia in Africa - Southeast Asia represents a high-growth region, with relatively low levels of risk. It is interesting to note that many stakeholders in the region have healthy appetites for Africa, despite perceptions of investment in Africa as high risk that prevail in many parts of the world. 4. Trends in the Telecoms Industry - The telecommunications industry in Africa features many interesting developments. One is the growth of the mobile money sub-sector in Africa, where telecoms companies have become dominant players. Some also consider moving into the e-commerce environment. However, telecoms players also face a number of challenges from both the political and regulatory domains. 5. Trends for Western Companies in Africa - Companies from the West target African markets, and have been doing so for many years. Many companies, both global MNCs and SMEs, are becoming more involved in Africa. Some are increasing their footprint, whilst others are creating a presence for the first time.