Tony Blair
Member, Africa Progress Panel
Founder, Africa Governance Initiative

Africa holds vast economic potential for those willing to engage and to convert the continent’s constraints into commercial opportunities, ones that benefit both the continent’s people and investors. Nonetheless, there are still not enough British companies and investors taking advantage of the many opportunities that await them in Africa. This is why this Trade Guide to African Markets prepared by The British Chambers of Commerce is so timely. Building on the success of the Chamber’s Guide to East and West African Markets published in 2008 it highlights the opportunities for British businesses and advises on how they can be grasped.

Zahid Torres-Rahman
Director, Business Action for Africa

Africa offers vast opportunities for business – dynamic new markets, new consumers and new suppliers. This is the message that I hear time and time again from those doing business in or with Africa – from sectors ranging from beverages to telecoms, from agribusiness to clean tech. At the same time, the dual challenges of fighting poverty and climate change across the continent ultimately depend on a thriving and responsible business community – both domestic entrepreneurs and foreign investors.

Forewords - Seize the Moment
Patrick Orr, Chairman, BCA UK

The world is full of tough choices for business and none more so than for potential investors in emerging markets. Africa presents some of the toughest challenges, but also some of the most rewarding. The best opportunities are often there for the investor or business person who is prepared to take the risk and stay the course.

Forewords – Look to Africa for Outsourcing
Martyn Hart, Chairman
National Outsourcing Association

The outsourcing industry is growing at an ever-increasing rate as globalisation is accepted as the path forward for businesses worldwide. Protectionist sentiment in some quarters during 2009 only served as a brief hiccup against this almost unstoppable force. Organisations are looking to vendors across the globe to provide them with cost saving services and expertise, especially during times of financial instability. India has been the dominating force behind this outsourcing boom and acceleration of globalisation, servicing a vast chunk of the market for both BPO services as well as IT.

North Africa has not been spared from the global financial crisis; however, it is likely to fare better than other regions of the world, as regional oil exporters can draw upon their large reserves to mitigate the impact of the global slowdown on their own economies. Neighbouring economies with whom they have growing economic links will also benefit.

Algeria is Africa's second largest country and is home to a population of around 35 million people. It has the eighth largest supplies of natural gas in the world and is the world's fourth largest exporter of the commodity. Strategically located at the heart of North Africa, Algeria's vast hydrocarbon reserves and its demand for modern infrastructure have paved the way for countless business opportunities. There has been considerable interest from governments and companies throughout the world.

With its population of almost 80 million people, Egypt is by far the largest of the Arab nations. Located at the north east corner of Africa, it is bisected by the highly fertile Nile Valley, and it is here that most economic activity takes place. The country is blessed with plentiful hydrocarbon reserves and is a major producer of these commodities.

Libya is a major oil producer and hydrocarbons are the primary driving force of the economy. The country is making efforts to attract more international investors. Alongside the plans to open the economy and foster trade integration, Libya has taken up one of the rotating seats on the UN Security Council.

Morocco is strategically located along the Strait of Gibraltar and is increasingly being viewed as a regional hub for business and transportation. The country's economy has gradually diversified and solid economic policies have brought macroeconomic stability. Morocco is one of the most reformist countries in the region and is progressing toward a more modernized and globalised economy.

Although Tunisia is the smallest country in the North Africa region, it has the most diversified economy and is one of the most politically stable countries in the whole of Africa. Its population of ten million enjoy some of the continent’s highest standards of living. Agriculture, mining, tourism and manufacturing are the main generators of income for the country.

East African nations have made huge progress in recent years on the back of political stability and high appetite for resources by countries like China. Robust economic growth has helped drive these nations toward meeting their Millennium Development Goals. Most of the countries experienced economic slowdown in 2008, in line with the global slowdown. Despite this, the majority of the nations maintained healthy growth rates with regional growth averaging a very respectable 7.3% in 2008. This was down from a very strong 8.8% the previous year. In 2009, the region began to feel the effects of the global recession more fully. Regional growth was expected to slow down to 5.5%, recording the continent’s best growth rate for 2009. This rate of growth should be maintained in 2010.

Djibouti has the significant advantage of exceptional geographic positioning. It is located at the confluence of maritime routes into Asia, Europe, the Arabian Peninsula and East Africa. Much of its neighbouring countries’ foreign trade passes through its international port.

Eritrea is a young nation which obtained independence from Ethiopia less than two decades ago. Impressive progress was made in the early years of liberalization with the rehabilitation of basic economic and social infrastructure and inspiring rates of economic growth. However this was brought to an abrupt halt when fighting with Ethiopia once again broke out.

Ethiopia, with its population of over 80 million people, has the potential to be one of the largest markets on the continent. Since the beginning of the 990s, the country has been pursuing a development strategy that is centred on the development of both state and private enterprises. Although it is one of Africa's poorer nations with a GDP per capita substantially lower than the average, Ethiopia's economy has been performing well for a number of years now.

Kenya is one of the largest, most advanced economies in East Africa and the commercial, economic and logistical hub of the region. Kenya is home to well developed, if in places uneven, infrastructure and a large percentage of the population are educated to a high standard and can speak several languages including English. Agriculture is the backbone of the economy and agricultural exports provide the primary impetus for growth, although tourism has gained increased importance.