Microsoft Corporation (NASDAQ:MSFT) –
As mentioned above, Africa is the second largest growing mobile market according to research done by Microsoft Corporation (NASDAQ:MSFT) itself. This is the reason that they are teaming up with Huawei to make a new smartphone that is specifically geared toward African consumers. The 4Afrika initiative launched in February has the company spending an additional $75 million over next three years to develop its share in what it calls the “game changer in the global economy.” The phone will feature Windows 8 as opposed to the Android or iOS systems. The new smartphone is being called the Huawei Windows 4Afrika. The phone will also come loaded with applications that will be useful in the African marketplace.
Google Inc (NASDAQ:GOOG)
Africa, with about 1 billion people, has 15% of the world’s population, but only 2% of its internet users. Google Inc (NASDAQ:GOOG) has also recently increased operations in Africa in an attempt to change this continent with the lowest internet penetration in the world. The plan will attempt to bring internet access to sub-Saharan Africa, as well as the parts of southeast Asia that aren’t already well-covered in hotspots. Furthermore, Last year Denis Gikunda, Program Manager for African Languages at Google, announced that the search engine was offering its homepage in more than 30 African languages. Undeniably, this dramatic increase of users will increase Google Inc (NASDAQ:GOOG)’s bottom line, but just exactly how and future plans are things fools should keep an eye on.
Samsung
Samsung is now represented in every African country, with massive growth plans afoot. This is in line with its plans to grow its Africa business to a $10 billion entity by 2015. The plan entails increasing its massive supply chain, and developing assembly facilities in Ethiopia. Further, Samsung has opportunity to grow their company’s home appliance division. They have started to create new products built specifically towards the African Demographic that will boost uptake of the company’s home appliances.
Foolish conclusion
Opportunities in Africa span all economic sectors. Because most African economies are in early stages of development, many attractive investments can be found in technology and services. I expect Africans’ disposable income to increase rapidly and therefore seek to invest in industries where that money will be spent. Personal communications, food and beverage, banks, health care and retail are all industries where I expect growing demand.
Just as with early investors of Asia and Latin America, I believe that investment pioneers in Africa are likely to find the journey challenging and often unpredictable, but ultimately very rewarding in the long run.
Chris Johnson has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned.
The article Companies Are Investing in Africa, and You Should Too originally appeared on Fool.com.
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