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Africa

AFRICAIts time for Africa!

GROUP MEMBERS

IQRA KHALID

SAAD SHAMSI

SIDRA ISHFAQ

DANISH ALI

AFRICA

SOUTH AFRICA EYGPT NIGERIA

Introduction To Africa

Second largest Continent

Surface area 3,03,13,000 Km

54 Independent Countries

48 Mainland

700 million population

AFRICA

SUB-SAHARAN REGION

YearGDP Contribution(US Dollars )2009 1,476.17920101,730.072 20111,880.380

Contribution of Africa in Worlds GDP

Foreign Direct Investment

$29.5 billion in 2010 $36.9 billion in 2011

$42.7 billion in 2011

25% increase in foreign investment in 2011

Sub-Saharan Africa

North Africa

Africa Top Five Recipients In 2010 & 2011

FDI Inflow

In last two years the FDI is decreased in Africa from 4.2% to 3.6% but it is still above than 3.3% average of last decade.

Egypt Libya Tunisia

Top investment sectors in Africa:

Agriculture

Tourism

Tourist arrivals in 2010 are 49 million.

Tourist arrivals in 2012 are 50 million.

Top investment sectors in Africa:

Mining of solid mineralsiron ore, coal, gold, tin, lead, zinc, diamond, cobalt, gold, copper and other resources.

Infrastructure

Consumer GoodsOver 300 million people are Belong to middle class.

Countries Investing in Africa

Companies investing in Africa

Company namesPortugal TelecomMarriott InternationalKraft FoodsAmerican TowerH.J. HeinzWalMart

Hurdles for investing in Africa: -

Governmental Problems

Regional Conflicts

Lack of Infrastructure

IQRA KHALID

SOUTH AFRICARepublic of South Africa, is a country located at the southern tip of Africa

It is divided into nine provinces and has 2,798 kilometers (1,739mi) of coastline.

Africa is the 25th largest country in the world by area and the 24th most populous country with over 51 million people.

CONTSSouth Africa is considered the industrial giant of Africa.

It is a substantial resource for minerals including gold, silver, copper and diamonds.

CONTS..

SAIBL(South African International Business Linkages ) provides a gateway to this market and to the rest of Africa

ECONOMIC IMPACTGDP growth: 3.4% (official, 2011 est.)GDP per capita: US$10,700 (2010 est.)CPI: Between 3% and 6% (official 2011)Key interest rate: 6.5% (repo rate, March 2010)Exchange rate versus US dollar: R7.38 (2010)*Unemployment: 25% (official, Q2, 2011)FDI: US$83.08 billion (2010 est.)Current account deficit/surplus: US$16.51 billion (2010 est.)Population: 49,004,031 (July 2011 est.)

Major Industries of South Africa

Natural ResourcesAgriculture and food processingTourismManufacturing

Government Incentives Plan for InvestorsResearch & Development

Capital Expenditure

Competitive Enhancement

Promoting private sector involvement

Opportunities:Natural Resources & MiningWireless developmentCall centersHardware and software developmentEnergyHotel & Transportation facilities

Challenges/Threats:Crime RateDisease TransferUncertainty & Risk FactorShortage of skilled LaborHidden CostsGovernment Policies UncertaintyTax Rates

EYGPT SIDRA ISHFAQ

ECONOMIC OVERVIEWNortheast corner of the African continent.

Egypt's economy was highly centralized.

Aggressively pursued economic reforms to attract foreign investment and facilitate GDP growth.

The hardest hit sectors of the Egyptian economyTOURISM

MANUFACTURING

CONSTRUCTION

ECONOMIC INDICATORSGDP (purchasing power parity) $515.4 billion (2011 est.)

GDP - real growth rate 1.2% (2011 est.)5.1% (2010 est.)

GDP - per capita (PPP) $6,500 (2011 est.)

GDP - composition by sector agriculture:14.5%industry:37.6%services:47.6% (2011 est.)

Labor force 27.74 million (2011 est.)Unemployment rate 12.2% (2011 est.)9% (2010 est.)Inflation rate (consumer prices) 13.3% (2011 est.)11.1% (2010 est.)Industries Textiles, food processing, tourism, chemicals, pharmaceuticals, hydrocarbons, construction, cement, metals, light manufactures

Egyptian Economy Is At RiskPoverty rates currently stand at 70%.Economic growth has dropped to between 1% and 2%. Hard currency reserves have declined from $36 billion to $28 billion. The flow of foreign investments is down to zero. Budget deficit has reached EGP1290 billion. The general debt is calculated at EGP1080 billion, i.e. 90% of GDP. The proceeds from tourism are down by 40%. The Stock Exchange has lost EGP20 billion.

SolutionsTo create an atmosphere suitable for attracting investments and tourists.To create the economic conditions likely to ensure the re-launch of the money market.To develop the banking system and to institutionalize investment transparency. To fight corruption and consolidate democracy. To protect the countrys financial and monetary sectors

OPPURTUNITIES FOR MNCs IN EGYPTCOMPARED TO S/ASouth Africa attracts more sophisticated MNCsMNCs operating in South Africa came from countries quite far from itin Egypt are from the Middle East-North Africa (MENA) regionThe MNCs entering both the countries source a small fraction of their required tangible resources from the host countrieslocal FDI-specific and industry-specific regulations are deemed more investor friendly by MNCs operating in Egypt

POLITICAL ENVIRONMENT Resignation of President Hosni Mubarak on February 11th 2011

The supreme council of the Armed Forces (SCAF) President Mohammad Morsi (June 2012)

NIGERIA DANISH ALI

OVERVIEW Federal Republic of Nigeria, is afederal constitutionalcomprising36 statesand itsFederal Capital Territory,Abuja. The country is located inWest Africaand shares land borders with the Republic of Beninin the west,ChadandCameroonin the east, andNigerin the north. Its coast in the south lies on theGulf of Guineaon theAtlantic Ocean. The three largest and most influential ethnic groups in Nigeria are theHausa,IgboandYoruba.

StatisticsInternational ReservesUS$ 35.885 billion Gross Domestic Product GDPUS$ 273.042 billionGDP (Purchasing Power Parity)US$ 448.495 billion Real GDP growth200120022003200420052006200720088.2%21.2%10.3%10.6%5.4%6.2%7%6%2009201020112012*7%8%7.2%7.1%GDP per capita - current pricesUS$ 1,657

GDP - composition by sectoragriculture: 35.4% industry: 33.6% services: 31%Inflation2009201020112012*12.5%13.7%10.8%11.2%Unemployment rate2009201020112012*19.7%21.1%23.9%N/APopulation below poverty line70%

Rules and laws There are three distinct systems of law in Nigeria:Common law, derived from its colonial past and a development of its own after independence;Customary lawwhich is derived from indigenous traditional norms and practice, including the dispute resolution meetings of pre-colonial Yorubaland secret societies and thekpand Oknk ofIgbolandandIbibioland;Sharialaw, used only in the predominantly Muslim north of the country. It is an Islamic legal system which had been used long before the colonial administration in Nigeria but recently politicised and spearheaded inZamfarain late 1999 and eleven other states followed suit. These states areKano,Katsina,Niger,Bauchi,Borno,Kaduna,Gombe,Sokoto,Jigawa,Yobe, andKebbiThe country has ajudicial branch, the highest court of which is theSupreme Court of Nigeria

Hurdles for mnc in NigeriaCrimeLanguagevocational and technical education in NigeriaLabor healthPeople are against to the government

Impact of MNCs in NigeriaEconomic developmentEnvironmental violations and benefitsGrowthThe major four (4) sectors

Government Policies

Nigeria people face is environmental issue because Nigeria is a beautiful land and very famous for tours but due to environmental issue that is caused by the mnc companies now tourist is not coming in the country so government make a policy that if a mnc operate in that country it should give the plan that how it manage its waste the if the government improve its plan the that company can operate in that country

The economy has been liberalized for full open market100% foreign participation is now allowed in all sectors of economyPrivatization program and industrial development encouragedProfit repatriation allowed.

Problems that Nigeria face due to MNCs

Waste managementEnvironmental/global warmingInvesting Risk adverse

Opportunities for mnc in NigeriaThere are many multinational companies that can invest in Nigeria the multinational companies can invest inOil industry Cloth industry Banking sectorManufacturing

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