"Africa is a large continent with huge potential"
Africa has gone from being 'the hopeless continent' to the hopeful continent, a continent in transformation where there are opportunities for Swedish companies. That is the message conveyed by Minister for Trade Ewa Björling in her speech at the Swedish Trade Council's Africa Day - 'Business opportunities in Sub-Saharan Africa' on 23 April. Dr Björling answers a few questions about Swedish exports to Africa.
Over the past decade, Swedish exports to Sub-Saharan Africa have increased by 75 per cent. In the picture, Cape Town in South Africa. The country serves as a business hub for all of Africa. Photo: Flickr/InsideSouthAfrica (cc)
What possibilities do you see for Swedish companies wanting to start up in Sub-Saharan Africa? What potential do you see in these markets?
"Africa is a large continent with huge potential. Obviously, the potential differs greatly between the 54 countries, but it is hard not to be impressed by the fact that today, seven out of ten of the fastest growing economies are in what was, just ten years ago, described as the 'hopeless continent'.
Presently, there are huge opportunities, particularly for companies that work with building fundamental infrastructures in telecommunication, energy and transport. At the same time, as the middle-class population grows, so does African domestic consumption, which means that a broad spectrum of companies have excellent prospects to find exciting business opportunities."
What are the challenges in terms of, for instance, corruption and the business climate?
There is no doubt that the challenges are still great in many places and in a variety of areas. It is a question of everything from war and conflicts, to corruption, a lack of infrastructure, weak ownership rights and a great need for education.
Some of these challenges do however entail vast opportunities for Swedish companies, since we have extensive knowledge in areas including environmentally-friendly urban solutions, mining and infrastructure. The upside is that we can strengthen our trade and our business sector while simultaneously helping to improve water purification, access to energy and transport alternatives. A real win-win situation.
Why is the Government particularly promoting exports for small and medium-sized enterprises?
Our largest companies are immensely important for Sweden; so important as to constitute a certain risk for us. If business is bad for them, it has very tangible ramifications for the entire Swedish economy. Therefore, it is imperative that we broaden our export profile, particularly by assisting small and medium-sized enterprises that want to expand and discover new, exciting markets. Another reason is that small and medium-sized enterprises have less opportunities to scale the thresholds that prevent them from moving out into the world. While larger companies often have more expertise and stronger financial muscles that enable them to do more on their own, small and medium-sized enterprises often need more support.
Many Swedish companies with activities in Sub-Saharan Africa are socially responsible. What advantages does that present?
I see it as a major competitive advantage for us. Many want to be involved when economic growth in Africa really takes off. The fact that we can show that we - in addition to our extensive knowledge and our attractive goods and services - are very good at taking environmental consideration, ensuring that the workforce is treated well, contributing to the fight against HIV/AIDS and in general, conducting ourselves in a more long-term, responsible manner, I believe makes us stand out as a more attractive partner.
