8 African Countries In The Forefront For Formal Retail Investment In 2017

Kurt Davis Jr.
Written by Kurt Davis Jr.
Woolworths wants to forget their failure in Nigeria. Courtesy of Jeff Attaway/Flickr.com

South Africa

South Africa is not the hottest country up for discussion when talking about investment in 2017. But opportunity may be found in the second half of this year for the country with a dismal GDP growth projection.

Research analysts from Nomura have growth in the country around 0.2 percent for 2017 since the government reshuffle (and firing of finance minister Pravin Gordhan) in March. South African retail and consumer goods companies are looking for opportunities to add to their topline revenue and diversify away from the South African Rand. They are exploring acquisition opportunities (and joint ventures) outside of South Africa, including with an open mind, in part, to companies in other regions of Africa.

Woolworth’s abrupt exit from Nigeria was the horror story within the South African business community. But this story (and a few others) must be put to bed if local South African companies are to push through in 2017 and 2018, as economic growth looks to remain relatively slow within South Africa in the near term. Tapping into markets that can add consumers and buttress cash/forex concerns is likely the best path forward.