Why Not Manufacture From Africa?

[DeletedUser]

China is the worlds premiere exporter of manufactured goods at the moment, there are many advantages of setting up a factory in china and shipping your goods to the consumer countries. For example China has a massive workforce comprised of people who can learn quickly, work efficiently, and better yet cheaper than most other workers around the world. Although there are many advantages of working in china it is still far away from the consumer nations and relies to much upon the American dollar. Why not invest in Africa? The continent has a massive workforce which can easily be trained and payed even less than Chinese workers (and it will also foster growth in the native markets) Taxes are rarely enforced and protection for workers and assets can be cheaply bought from defunct soldiers.

 

[DeletedUser]

Many companies do set up in Africa as it is easy, cheap labour. However you have to remember why a lot of those african countries are like they are; corrupt governments, civil war etc. It's a terrible idea to set up a factory in somewhere where it's likely to get blown to pieces due to civil unrest or taken over by armed soldiers under the governments orders. Also the lack of technology means training would have to start from the very bottom up, a costly process and the african countries have little resources which are needed for the factory to run.

 

[DeletedUser]

You know what, despite being very controversial, this could be an excellent idea. The relations to slavery would be astounding though, and if it were to take place, i can assure you, that link would come up severely quickly.

Problems though. The countries in africa are very... unstable, by which i mean that they have many civil wars, insecure leadership, and rebel groups in them, compared with a place like china (Though, China wouldn't allow that to happen, but, that's another discussion).

It would be good, in a sense, and would certainly help african countries get back on their feet economically, and give them more power in the world. But, i doubt it would happen, whether it should or not, I think it should, but it would be risky.

 

[DeletedUser]

Ok changing the subject slightly.


So I was thinking of what a good Idea it would be to start a railroad company in Africa based out of the areas where china and other foreign investors are making new projects. My only problem is whether there are other available railroads and if it would be possible to get investors to help start this little venture.

 

[DeletedUser]

Kenya already has a railway as Britain made it when we colonised it. It's likely other countries also have railways after they were colonised as well. As for people actually using it, I'm not sure the general public would use it, which would put a serious dent in your return.

 

[DeletedUser]

I never knew that, doesn't Africa have only 100 miles of road or something? but seeing as they do have a railway system I'm guessing it would be mainly used for army transport if I'm not mistaken?

 

[DeletedUser]

Trust me they wouldn't have railways if it wasn't for foreign influences, the British built it so we could exploit them easier. Not necessarily for their benefit, more for ours. As for how it would be used, I expect in the main it's used by the few which are "wealthy" within the country e.g the owners of tea plantations to transport goods.

 

[DeletedUser]

amazng I never knew that, but has anyone answered CEO's question because I'm stuck for the answer

 

[DeletedUser]

I'd say that as long as you chose a stable African nation then it should work well. However picking a stable African nation will be difficult as none of them are incredibly stable, each have there flaws which could jepordise the whole project resulting in huge losses on your end. You'd also have to follow standard business procedures to flourish e.g find out your target market, the main imports/exports and the main ports of the nation or existing transport links and how you could improve on these.

All I can say is good luck and share the money around

 

[DeletedUser]

[clt]One of the main problems you have got is the under-developed port infrastructure in Africa, especially the north and especially in Nigeria, which is the most populous country in Africa. There are various projects in place for improvement but it is a continual problem that hampers effective commercial shipping.[/clt]

 

[DeletedUser]

as of yet I have geared my ventures towards warehouse and storage