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There are a lot of stereotypes about Africa.
Most individuals assume each nation in Africa is poor, harmful and has a horrible economic system.
Most traders suppose Africa is uninvestable.
We disagree.
Definitely, the 54 international locations in Africa will not be all the identical, and whereas some international locations have extra points than others, much like america and Europe, others could make the typical Western nation jealous, not solely because of their lovely nature, nice climate and type folks, but in addition resulting from secure political programs, enviable demographic development and promising financial growth prospects.
One such eye-opening instance is Namibia, which we visited with a analysis journey for the primary time since 2015.
In idea, we – seasoned funding nomads who’ve made almost 200 analysis journeys and met with greater than 2 000 corporations from over 30 rising markets prior to now decade – should not be stunned by anywhere anymore, not to mention by a sparsely populated nation of shut to 3 million folks dwelling in south-western Africa, the place the desert meets the ocean.
And but, we had been amazed by Namibia.
Touchdown in Windhoek, Namibia’s capital metropolis, was as tranquil because it will get: it was a pleasant sunny morning with pristine blue skies painted with a high-quality brush on prime of inexperienced bushes and dry riverbeds.
It is a divine pleasure to start out a analysis journey like this, certainly.
We shortly made it by the pleasant immigration on the useful worldwide airport and launched into a half-hour journey to the town on a wonderfully easy freeway.
Navigating the protected, clear, groomed, trendy streets of Windhoek, we could not assist however ask, “are we in Germany in spite of everything?” – the road indicators had been in German, numerous the structure was German, the tallest church was Lutheran, many vehicles had been German, and among the residents regarded like they had been roaming the streets of Munich as a substitute of the savannah.
The prevalence of German tradition in Namibia’s capital metropolis is defined by the truth that it was one in every of Germany’s solely colonies in Africa, with the primary German settlers having arrived within the late nineteenth century.
The colonial structure, German language, Lutheran church and German desire for Ordnung (order) appear to have caught round on the bottom and stay distinguished effectively into the twenty first century.
At present, Namibia is without doubt one of the most secure, most economically superior and politically secure international locations in Africa.
It boasts well-functioning social establishments with a top-three ‘least corrupt’ rank in continental Africa, bettering freeway infrastructure, rising tourism business and younger demographics.
Seventy % of Namibians are youthful than 30 years of age.
The nation’s inhabitants has greater than doubled within the final 30 years – having expanded by over 40% within the final decade alone when Windhoek skilled 50% inhabitants development and the coastal cities Walvis Bay and Swakopmund each grew by over 60% – and the break up between city and rural inhabitants in Namibia remains to be at a nascent 50/50.
All of this creates super alternatives for native companies addressing imminent urbanisation, center class growth and ensuing consumption development.
Namibia can be changing into increasingly in style as a relocation and retirement vacation spot for foreigners, significantly South Africans escaping their decaying establishments, in addition to Europeans – primarily German audio system – escaping their miserable winters.
Using the worldwide work-from-anywhere pattern, Namibia has additionally just lately launched a digital nomad visa, looking for to draw proficient creatives prepared to discover the nation for as much as six months and spend cash domestically – thus benefiting the Namibian economic system – whereas working on-line and never having to fret about taxes. A win-win for everybody.
GAME CHANGER
Latest discoveries of very substantial oil reserves off Namibia’s coast look like a whole long-term recreation changer for the nation.
This oil discovery can additional solidify Namibia’s economic system, enhance its credit standing, assist its companies develop earnings and may result in a de-peg of the Namibia greenback from South Africa’s forex.
From our evaluation, inventory markets of nations with newly discovered giant oil reserves did significantly effectively following the preliminary 5 to 10 years post-discovery.
It’s seemingly that Namibia will observe swimsuit, particularly provided that its shares are presently buying and selling at very low-cost valuations and an surprising vastly beneficial catalyst, resembling this oil discovery, can shortly transfer the market.
The chief government of the native inventory alternate defined to us that whereas there had been a slowdown within the economic system since 2016, enterprise actions at the moment are choosing up – and the current oil discoveries are solely going to make it hotter, as it would result in an enchancment within the nation’s creditworthiness, which is able to drive a rise in funding, which is able to then enable for development in your entire economic system.
Within the inventory alternate chief government’s view, given the present mismatch between the economic system with upcoming speedy development, thanks to grease discovery on the one hand and the strong worthwhile corporations whose valuations are ‘by the ground’ on the opposite, traders that come to the market immediately may reap the most important rewards of the long run synchronisation between the intensifying enterprise development and valuations that must catch up.
The sector that stands to profit probably the most within the early levels of closing this hole is the banking sector – which is already world-class – as a result of it would facilitate development and funding all through your entire economic system.
Banks which are already doing effectively will do even higher, concluded the top of the alternate.
HIDDEN GEMS
Navigating to our assembly with the administration of a multimillion-dollar IT and telecom group, we stopped at a warehouse constructing on the outskirts of Windhoek.
What awaited us inside this unassuming warehouse was surprising.
It was as if we entered a implausible parallel universe dreamt up by some genius thoughts.
The corporate’s workplace resembled a spaceship shifting swiftly into the long run, with a management room to the likes of which we solely see in films about aliens or spies the place they monitor your entire world by way of dozens of high-tech screens.
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Having accomplished greater than 2 000 firm conferences within the final 5 years, we’re assured this firm’s workplace ranks in our top-five record of finest company quarters.
The agency has been quickly rising income and already gives companies in 35 African international locations.
On its residence turf in Namibia, it intends to compete with the mobile community monopoly by launching a brand new cell operator utilizing 5G capabilities – a welcome growth for the standard of service within the native telecom market.
This assembly solely cemented our optimism about Namibia.
{That a} non-public high-tech telecom firm managed to get off the bottom, appeal to prime expertise and increase to 3 dozen international locations, and aspires to compete with a monopoly, is a testomony to the standard of the Namibian folks making it occur and to the energy of Namibian establishments offering an surroundings for such high-value-add entrepreneurship to occur.
We went to Namibia to seek for hidden gems.
What we didn’t anticipate, and what we realised throughout our journey, is that Namibia itself is a hidden gem – one in every of a form.
Namibia has all of the potential to be often known as a land of development and prosperity.
We consider it is solely a matter of time earlier than this market will get re-discovered by traders.
It has rising companies run by prime groups, world-class governance and it has a serious catalyst that may drive long-term efficiency throughout all sectors of the economic system.
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