Investors may feel worried about placing their money overseas in countries they have little experience or understanding. However, if you look at an emerging economy, there are numerous industries to invest in.
Thinking intuitively about what emerging economies need to sustain their growth rates, we can focus on industries that are absolutely vital to success of all of fledging countries. The reason why the real gross domestic product of some African countries is experiencing double growth is because they are transitions into knowledge based economies. We are fortunate enough to understand what types of industries these economies need in order for them expand.
These industries include:
Food & Beverage
To put it simply, if countries like the ones stated above want to see their economies grow and transition into knowledge-based societies, there will be a significant demand for cellular devices and general telecommunications. Mobile networks will allow businesses to connect and be more efficient, as well as having the added social benefit of instantly connecting people with each other.
Another industry that will surely see its demand grow is the food and beverage industry. As economies grow, the spending money of the consumer will as well. This, coupled with Africa’s population growth will only mean an increased demand for the necessities of life. Popularity of supermarket chains equivalent to that of the western worlds Wal-Mart, will only serve to grow and meet the demands of growing population and economy.
Arguably the most lucrative industry is the vast amount of natural resources that Africa has within. Specifically, many countries of Africa have been blessed with large oil reservoirs and precious gems waiting to be extracted. This along with other sectors of the economies will be the driving force for sustainable growth.
Lastly, but one of the most important industries is infrastructure. Growing economies will need this one key factor because without it, the logistics of trade will be inefficient. This will hinder the ability of countries to transport goods across the continent and around the world. Another important factor of infrastructure is housing. Countries with large middle classes such as Nigeria, will need an ample supply of housing to sustain its growing population.