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Wednesday, 30 March 2016

As Barclays exits Africa other global firms see significant opportunities

While Barclays has revealed plans to exit its African exposure other international firms are attracted to the continent like a magnet. Slowing economic growth in Africa, soft commodity prices, and monetary policy tightening in the US have impacted heavily on the region, but a recent study says, in spite of this investors prefer the continent. The region has attracted a number of international investors largely due to the Africa rising narrative. Africa remains one of the fastest growing economic zones in the world. In 2016 the region’s GDP is forecast to grow 2.4 per cent. The report also sheds light on how global firms' African operations performed financially in the last year, executives’ expectations for commercial performance over the next five years, where their firms are investing, which markets excite them the most and the challenges they’re facing operating in the region. The Economist Corporate Network’s "Dampened growth, resilient optimism: the 2016 African Business Outlook Survey" says 37 per cent of respondents say African operating margins are higher or significantly higher than their firm's global averages.

Source: CNBC Africa