Africa is a relatively recent entry into the offshoring sector. The continent has, however, seen a strong uptick in activity in recent years, driven primarily by its low-cost proposition, ready availability of talent, English and French language skills, and favorable time zones in relating with Europe.
First Johannesburg, Cape Town, Cario and Casablanca have emerged as the leading cities in terms of a critical mass of offshore services, while Nairobi and Accra are also developing in this area. Several African governments, such as Ghana and Kenya, are making serious efforts to enhance the attractiveness of their operating environment by creating technology parks and developing their skills base.
The fact that South Africa is ranked the continent’s only “transparent” market shows its reputation among global investors and corporate occupiers as the most desirable location to do business in Africa,that why most of Global business brands first set their business offices or production unit in south africa, Business operating environments in Africa are selectively growing and economic governance is, in general, becoming more rigorous
Also investors’ concerns about a wide range of risks persist, and Africa will remain a challenging balance of risk versus opportunity. Within sub-Saharan Africa , Accra (Ghana), Lusaka (Zambia), Dar es Salaam (Tanzania) and Maputo (Mozambique) are judged to have the region’s most favorable risk profiles. Combined with their high rates of economic growth, they provide among the continent’s most attractive environments for investors. Property markets in countries such as Ghana and Kenya are improving in transparency, and are already proving themselves to be suitable regional hubs from which to reach the significant East and West African production and consumer markets.
Poor infrastructure (in terms of transport, utilities and telecommunications) remains one of the biggest challenges for the African continent,and a hindrance to economic activities but investment funding is steadily increasing. China, in particular, has become a major source of funding that includes hydropower projects in Nigeria, roads and railways in DR Congo, Mozambique, Tanzania, Kenya and Angola, and communications in Ethiopia. With many city infrastructures straining under the weight of rapid urbanization, there are several ambitious plans for new satellite “cities” on the edge of Africa’s major cities, including Konza Techno City outside of Nairobi and Eko Atlantic on Victoria Island in Lagos.
