Background
Africa
Africa’s Economic pulse has quickened, infusing the continent with a new commercial vibrancy. Real GDP rose 4.9 percent per year from 2000 through 2008, more than twice its pace in the 1980’s and 90’s. Telecom, banking and retail are flourishing, Construction is booming. Foreign investment is surging.
| The continent boasts an abundance of riches, including 10 percent of the world’s reserves of oil, 40 percent of its gold, and 80 to 90 percent of the chromium and the platinum group metals. Demand for raw materials is growing fastest in the world’s of emerging economies, which now account for half of Africa’s total trade. As trade patterns have shifted, African governments are forgeing new types of economic partnerships in which buyers from these countries provide up-front payments, make infrastructure investments, and share management skills and technology. Foreign direct investments in Africa has increased from $9 billion in 2000 to $62 billion in 2008 - almost as large as the flow into China, when measured relative to GDP. (According to McKinsey Global Institute) |
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Investors have begun to notice that Africa is ripe with opportunity for investments into SME’s. From 2001 through to the first half of 2010, Africa attracted 43% of all funds going to support SME’s in emerging markets, according to Dalberg market analysis. The largest opportunities are in sub-Saharan Africa, where less than 20% of micro, small and medium enterprises (MSMEs) have access to financial services. The World Resources Institute and International Finance Corporation estimate that the Base of the Pyramid (BoP) market in Africa is valued at $429 Billion. (According to African Investor May - June 2011 vol 9 issue 3)
Italy
Italy is ranked sixth amongst OECD countries and fourth among European countries for Gross Domestic Product, with Italian production constituting more than 13% of the European Union’s GDP.
As a result of the nature of its productive system, Italy’s division into sectors of economic activity is similar to that of the principle European countries, with 27.7% devoted to manufacturing and construction and almost 70% to services. Of this latter sector, trade, transport and communications absorb an above average portion of GDP as compared with other European countries.
Located in the heart of the Mediterranean, Italy is a crucial crossroads for land, sea and air routes linking the North and South of Europe. The Italian market offers countless opportunities to businesses in expansion, with almost 60 million consumers and a GDP ranked fourth in the European Union. Thanks to its strategic placement, Italy makes it easy to reach the 396 million consumers of the other Union member countries and the 240 million of North Africa and the Middle East. It has also taken a leading position on the European market (11%), with an annual turnover of approximately 65 billion Euros. Of all European countries Italy has the lowest start-up costs for the biotechnology sector, and takes second place for product testing in research and development, chemicals and electronics.