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Results ブラック ジャック 賭け 方 JETRO’s 2019 Survey on Business Conditions ブラック ジャック 賭け 方 Japanese-Affiliated Firms in Africa
Mar 04, 2020
Market expectations become clear, 80% ブラック ジャック 賭け 方 companies have entered the market in Africa because ブラック ジャック 賭け 方 “future market potential”
-Momentum has increased since the 7th Tokyo International Conference on African Development (TICAD7)-
Between September and October 2019, the Japan External Trade Organization (JETRO) conducted its latest survey on business operations ブラック ジャック 賭け 方 Japanese-affiliated firms in 24 countries in Africa.
Survey outline:
| Method | Questionnaire |
|---|---|
| Period | September 24 to October 25, 2019 |
| Target | 423 companies (responses from 315 companies, response rate ブラック ジャック 賭け 方 74.5%) |
| Question items |
|
Key points ブラック ジャック 賭け 方 the results:
- Although the ratio ブラック ジャック 賭け 方 prブラック ジャック 賭け 方itable companies is 50%, which is lower than other regions, about 60% ブラック ジャック 賭け 方 companies are considering expanding their business with an eye on the future. In addition, with the growing business momentum ブラック ジャック 賭け 方 Africa following TICAD7, more than 60% ブラック ジャック 賭け 方 businesses believe that the importance ブラック ジャック 賭け 方 Africa to their global strategy will increase in the near term.
- Although business management risks remain, companies seek to expand their business by avoiding risks through new methods such as coordination with third-country companies. Promising future collaborations include those with South African, French and Indian companies.
- In terms ブラック ジャック 賭け 方 the reason for entering the market, 80% ブラック ジャック 賭け 方 companies answered “future market potential” and had clear expectations for the growing consumer market in Africa. Kenya, which has seen a remarkable rise in startups, has been at the top as a future investment destination for the fifth consecutive year.
Summary ブラック ジャック 賭け 方 survey results:
Following the 7th Tokyo International Conference on African Development (TICAD7) concluded in August 2019, the momentum for Japanese companies to expand into the African market was expected to increase. JETRO conducted a survey ブラック ジャック 賭け 方 423 Japanese affiliated companies in Africa in September and October ブラック ジャック 賭け 方 the same year, and more than 60% ブラック ジャック 賭け 方 the respondents answered that the importance ブラック ジャック 賭け 方 Africa in their global strategy would increase. As a reason for entering the market, 80% ブラック ジャック 賭け 方 companies answered "future market potential." There was also significant interest in new trends such as the transition to a digital economy. Kenya considered promising country for fifth consecutive year.
1. Proportion ブラック ジャック 賭け 方 prブラック ジャック 賭け 方itable companies remains at 50%, while about 60% consider business expansion. Importance ブラック ジャック 賭け 方 Africa to global strategies also increasing.
- Regarding the operation forecast for 2019, the percentage ブラック ジャック 賭け 方 companies reporting a surplus slightly increased from the previous year(49.8%→50.3%). Looked at by country, about 70% ブラック ジャック 賭け 方 companies in South Africa showed strong performance. This is due to the anti-corruption measures and financial soundness expected ブラック ジャック 賭け 方 the new Ramaphosa administration, launched in the general election in May 2019, and business expansion due to the stabilization ブラック ジャック 賭け 方 the political situation. Nigeria has also shown a steady increase; over half ブラック ジャック 賭け 方 companies reported a surplus, surpassing the previous year (47.6%→50.0%). There was no major disorder brought by the presidential election in February 2019, and the re-election ブラック ジャック 賭け 方 President Buhari had only a limited effect on business. Meanwhile, only 20% ブラック ジャック 賭け 方 the companies in Cote d’ lvoire were prブラック ジャック 賭け 方itable. This might be due to concerns about political instability associated with the presidential election scheduled for October 2020, as some companies have pointed out.
- The percentage ブラック ジャック 賭け 方 companies that reported they will expand their business in the next 1-2 years reached the majority for the past six consecutive years, and the business expansion trend has continued. Looked at by country, 80% ブラック ジャック 賭け 方 companies in Cote d'Ivoire reported business expansion. Multiple respondents reported that, despite concerns about political instability ahead ブラック ジャック 賭け 方 the presidential election, they are aiming to expand business to neighboring countries. In Mozambique, where rapid growth is expected due to natural gas development, the figure came to just under 70%, and in Morocco, which focuses on attracting companies through free zone development, it came to about 60%. A willingness to conduct new expansion in next-generation business development was also seen in Kenya (59.5%), Egypt (58.6%) and Nigeria (54.5%).
- Since TICAD 7 held in August 2019, when asked about changes to Africa’s position in their corporate global strategies, many companies responded that its importance will increase in the next five years compared to that ブラック ジャック 賭け 方 five years ago. The result suggests that Africa is seen to be more important for Japanese companies as a business partner. The next TICAD, which is held every three years, is scheduled for 2022 in Africa. Some companies said that their top management’s visit to Africa for the conference will increase the importance ブラック ジャック 賭け 方 their African strategy.
【Figure 1】2019 operating prブラック ジャック 賭け 方it forecast (by country)
JETRO
【Figure 2】Africa's position in overseas strategy
JETRO
2. Development and implementation ブラック ジャック 賭け 方 legislation or regulations greatest risk. Risk aversion and business expansion aimed at through cooperation with third country companies.
- While business momentum in Africa is growing, concerns about risks remain. In terms ブラック ジャック 賭け 方 management issues, "preparation/implementation ブラック ジャック 賭け 方 legal regulations" was the biggest risk. Approximately 80% ブラック ジャック 賭け 方 firms viewed this as a problem, indicating strong concerns about governance. However, its percentage dropped from 87.3% to 77.8% compared to the previous year. This was due mainly to reduced corruption following the transition to a new administration in South Africa (83.2%→66.7%) and simplification ブラック ジャック 賭け 方 the online tax payment system in Morocco (79.2%→64.7%).
- Competitors in the market have changed compared to the previous year. European companies were ranked at the top ブラック ジャック 賭け 方 the list as the biggest competitors, surpassing Chinese companies, which were the top competitors in the previous year. In the competition with China, the overwhelming majority ブラック ジャック 賭け 方 companies cited price competition as a factor, while in the competition with European companies, the existence ブラック ジャック 賭け 方 substantial local networks and support from their governments—including finance and tax incentives under trade agreements—were pointed out.
- At the same time, there are expectations for business expansion through collaboration with third-country companies. Approximately 70% ブラック ジャック 賭け 方 respondents cited "partner network utilization" as an advantage ブラック ジャック 賭け 方 third-country cooperation. Regarding cooperation with third-country companies, South Africa, France, India and China appear promising. As a regional base, South Africa was considered attractive because ブラック ジャック 賭け 方 the knowhow and market networks accumulated by local companies that now have a head start in regional development. Regarding France, expectations were heard regarding the potential for cooperation in French-speaking African countries. It was suggested that India’s appeal lay not only in its excellent strategy in the African market, where there is much affinity for the country, but also in the fact that Japanese companies could launch operations in Africa utilizing their Indian bases. Regarding China, the possibility ブラック ジャック 賭け 方 collaboration as a supplier ブラック ジャック 賭け 方 goods and materials is indicated.
【Figure 3】Partner countries in the third-country
JETRO
3. 80% consider “future market potential” reason for market entry, expectations for consumer market clear. Kenya considered promising country for fifth consecutive year.
- Among the reasons for entry to Africa, 81.7% ブラック ジャック 賭け 方 companies selected "market prospects" in what is believed to be pursuit ブラック ジャック 賭け 方 private consumption demand. This was the most common reason in previous surveys that included the same question (77.3% in FY2018, 76.4% in FY2017, 71.0% in FY2007). In terms ブラック ジャック 賭け 方 the advantages for investment in Africa, more than 70% ブラック ジャック 賭け 方 companies selected “market size and growth potential” as a reason. By country, this was selected by about 90% ブラック ジャック 賭け 方 respondents in Nigeria, Cote d'Ivoire and Egypt.
- Among promising fields in the future, the consumer market has risen sharply from the previous year and ranked at the top (40.9%→53.6%). This was followed by infrastructure, service and digital industries, which surpassed fields given much attention until now such as resources and transportation equipment (motorcycles, automobiles, etc.).
- Regarding the usage ブラック ジャック 賭け 方 FTAs, expectations are high for the African Continental Free Trade Agreement (AfCFTA), which came into effect in May 2019, and it has risen to the top among FTAs being considered for future use (by over 40% ブラック ジャック 賭け 方 companies).
The AfCFTA agreement came into effect in May 2019 with the aim ブラック ジャック 賭け 方 forming a free trade zone across the continent ブラック ジャック 賭け 方 Africa, but it was a framework agreement that did not immediately eliminate tariffs. Although liberalization with a 90% tariff line is promised, submission ブラック ジャック 賭け 方 schedules ブラック ジャック 賭け 方 tariff concessions, negotiations and approval processes prepared by each country only just began at the same time the accord came into effect. Operation is expected to start in July 2020 through this process, but some have expressed concerns that negotiations will take longer. - Regarding the current usage ブラック ジャック 賭け 方 FTAs, the FTA most used by Japanese companies was the Southern African Development Community (SADC). This was followed by the East African Community Customs Union (EAC), for which systematic operation is comparatively strong among FTAs in the region, and the Common Market for Eastern and Southern Africa (COMESA).
- In terms ブラック ジャック 賭け 方 countries worthy ブラック ジャック 賭け 方 notice in the future, Kenya ranked top for the fifth consecutive year. Also for the fifth year in a row, Nigeria ranked second and South Africa ranked third. Although Kenya is the seventh largest economy in the region, the robust payment system infrastructure found in the high rate ブラック ジャック 賭け 方 mobile money usage (66% ブラック ジャック 賭け 方 the population in 2018, according to the Communications Authority ブラック ジャック 賭け 方 Kenya) is fueling the rise ブラック ジャック 賭け 方 startups. By country, Kenya ranked the top startup funder in 2018. Nigeria continues to be the continent's most populous country and biggest economic power, while South Africa continues to receive high marks for its economic infrastructure. Ethiopia ranked fourth on the back ブラック ジャック 賭け 方 hopes for the growth ブラック ジャック 賭け 方 the manufacturing industry through the development ブラック ジャック 賭け 方 industrial parks and having the lowest wages in the region, as well as reforms expected by Prime Minister Abiy Ahmed Ali (inaugurated April 2018), who won the Nobel Peace Prize 2019.
【Figure 4】Reasons for maintaining presence in Africa
JETRO
| Rank | Country | Share |
|---|---|---|
| 1 | Kenya | 32.9％ |
| 2 | Nigeria | 30.3％ |
| 3 | South Africa | 28.3％ |
| 4 | Ethiopia | 24.0％ |
| 5 | Mozambique | 20.4％ |
JETRO
- For more information, please contact:
-
Middle East and Africa Division, JETRO
E-mail: ORH@jetro.go.jp
