Sunday, July 8, 2012

SMEs - more opportunities

SME opportunities. So I am focusing on opportunities in agriculture and mobile apps. What about you? What about other opportunities?

Africa is so far behind on infrastructure, and South Africa falls further behind daily, so construction is an obvious one, as long as you quantify the risk attached to doing government business. Electricity has to expand in terms of the available power and the reach. There will be many opportunities in areas such as solar and other types of energy.

The biggest deterrent to closing construction and power opportunities, particularly in South Africa, will be the  ongoing manipulation for own gain by government officials, as well as intolerable and unnecessary regulations which simply slow development down. Labour will also stop a lot opportunities from happening as the cost of labour continues to escalate, particularly in South Africa.

Retail is going to be a growth sector for sometime to come. The growth in democracy in Africa is leading to increased income for many citizens, and consequently they have greater disposable incomes. Avoid giving credit as they people are all new to this world and have little idea on how to manage credit, which means you could could take a large hit if you do offer credit. Stick to cash or establish relationships with credit organisations who are specialists in advancing credit, but they pay you on delivery of the goods.

Transport into Africa is still going to be dominated by road and air transport for sometime, because Africa cannot afford to restore the rail systems they have destroyed through neglect. This is going to take sometime before it is restored. But these present new opportunities.

Franchising in Africa i think will be big as well, for the same reasons it is successful elsewhere in the world.

We will look at other opportunities in the next blog as well.

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