Doing Business 2007, a report published by the World Bank has again listed Africa as the most difficult place to do business. Of the 35 most difficult areas in the world, 27 of those are located in the southern Saharan region. It takes 155 days to establish a company in the Democratic Republic of Congo whereas in Australia, it takes just two days. In Angola, it takes 1000 days to carry out the 47 procedures required to execute a contract. The report has given people the impression that Africa is still very backward and poor. For years, the world has focused on famine, disease and turbulence there, but overlooked the splendid natural scenery and the ongoing reforms many countries are making. Many people think doing business in Africa is fraught with risk, but few people realize that there are enormous business opportunities there.

Indeed, Africa is poor and backward in many ways. For example, in some countries, the exchange rate fluctuates sharply everyday. However, there are also many positive things about Africa. For instance, in Kenya and Sudan, many business people are satisfied with the environment. Chinese businesses there include Chinese restaurants, travel agencies and state-owned companies which are contracted to construction and energy cooperation projects.

These businesses all experience difficulties, such as the low rate of consumption in the area and ignorance of some local laws. In Sudan, the local people openly stole Chinese companies' equipments and materials. There are no laws or regulations to control this. The Chinese changed their strategy and tried to establish good relations with the local chiefs by sending them daily necessities and communicating with them regularly. After a while, incidents of theft all but ceased.

These are not the only success stories. Africa is not necessarily the graveyard of investors. In Zambia, customers of CELTEL Mobile Company have increased from 70 thousand two years ago to one million. The world's second largest beer company, the Miller Brewing Company, has begun operating in South Africa using local raw materials to brew low cost beer under the brand name Eagle. This Eagle brand is sold in many African countries. The key to their success is trying to understand the local situation and believe that tomorrow's Africa will surely be better.

Even in China, when foreign investors first started arriving, they had to learn to be very patient. It seems this wisdom is fitting for Africa today. Africa is only just beginning to undertake reform and the investment environment is still in its infancy stage, so it remains a risk to invest in Africa. Maybe this also explains why foreign investment in the 30 million square kilometer continent only accounts for 3 percent of global FDI.

However, investment and risk always go hand in hand. Africa has 800 million potential consumers. The African economy is growing steadily. According to the World Economic Outlook issued by the International Monetary Fund in September, it is expected that the economic growth rate in Africa in 2006 will reach 5.4 percent and 5.9 percent next year. The prosperity of the mining industry in the last three years has surpassed development in all the previous years together.

Africa has become one of the three most active regions of reform in the world. This year, Tanzania and Ghana have been listed as the most enthusiastic reformers. As World Bank President Paul D. Wolfowitz once said, "We have enough reasons to remain optimistic about Africa."

By People's Daily Online