As companies have realised that fewer business opportunities exist in a saturated domestic market, new business development has focused on emerging markets.
A recent review of emerging markets within Africa has identified nine countries that have already emerged; and a further ten classified as “up-coming emerging markets”. Given the fact that many of these African countries have higher growth rates than many First World economies, it is not surprising that successful companies are looking to secure greater returns on their investments in these economies.
However, for companies interested in exploiting opportunities in African emerging markets, senior management needs to understand that areas of potentially high profits also pose equally high risks. […]