Africa’s growing middle class makes it attractive to hospitality groups
Many countries in Africa are beginning to realise the value of moving away from a single focus in their economies
In recent years, the international business community has looked to the promise of growth through doing business in Africa, the world’s last frontier for the development of new business opportunities. The previous focus on China as the place to be is now waning, and the new concentration on Africa is evident. However, there are major risks for businesses in an emerging-market environment such as the countries in sub-Saharan Africa. Two of the most significant are the fluctuations in the value of local currencies against international currencies such as the dollar, and the dependency many states in Africa have traditionally had on commodities. When commodity prices fall, currency volatility often also hits the country; this explains the instability of recent years in the currencies of countries such as SA, Zambia, Ghana, Angola and Nigeria. But, when a country pegs its currency to an international currency, as is the case in some Francophone states in West Africa, which are pegged ag...
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