Africa is the world’s second biggest and the most densely populated continent in the world. With a population of 1.22 billion and an area of 30.4 million sqkm, Africa is also home to a variety of flora and fauna making it one of the world’s most lucrative destinations for naturalists and wildlife enthusiasts.
A mineral rich continent Africa is well known for its vast quantities of iron ore, bauxite, cobalt, and diamond. Home to a lot of native tribes the continent has a culture of its own characterized by dark-skinned race which is one of the earliest human settlements to have been in existence.
Owing to insurgencies and political strife as well as racial struggles there has been a lot of financial crisis and problems in the continent owing to which it lost its glory.
Strengths in The SWOT analysis of Africa
Strengths are defined as what each business does best in its gamut of operations which can give it an upper hand over its competitors. The following are the strengths of Africa
- Diversity: Africa consists of 54 countries each of which has something different to offer to the world. The region has the diverse culture, is a vast storehouse of various types of mineral resources and also home to a diverse group of races.
- Low cost of living: The cost of living in Africa is the lowest in the world. In Africa, one of the costliest places to live in South Africa and statistics indicates a value of just 752 pounds monthly income is more than enough for sustenance there.
- Huge mineral reserves: Africa is a mineral rich continent. It is home to a lot of extractive industries which depend on minerals like cobalt, bauxite, platinum, diamonds, copper, gold, iron ore and steel. This makes it a preferred choice for conglomerates in the mining industry.
- Rich Flora and Fauna: Africa is home to a wide variety of animals which are difficult to find in other parts of the world such as rhinos, elephants, zebras, and lions. The country also is home to tropical rainforests which has dense vegetation with a great biodiversity.This makes Africa a haven for tourism.
- Cheap Labor: Africa is known to be a place where labor can be sourced at a very cheap rate.
Weaknesses in The SWOT analysis of Africa
- High unemployment rate: Though UN and other organizations have taken numerous initiatives to improve the education and literacy rates in Africa more research indicates that close to 61 % of graduates in the region are unemployed.
- The high rate of illiteracy: Though UNESCO reports indicate that more than 144 million kids have enrolled into school in the region, Africa still continues to have the highest number of people who have not ever been enrolled into school.
- Conflicts in the region: There are a lot of conflicts in various parts of Africa. These include civil wars, wars between countries in the region and wars with no African nations. They have been creating continuous violence, deaths, riots, and killings in the region.
- Health and nutrition: Africa is home to a lot of deadly diseases and many areas suffer from drought and famine. In addition to this, there are numerous cases of malnutrition and related diseases amongst women and children.
Opportunities in The SWOT analysis of Africa
- Extractive Industries: Africa is home to a vast variety of mineral resources and thus can set up a lot of extractive industries. Africa can thus garner foreign direct investment into extractive industries as well as manufacturing.
- Focus on service sector: A trend that is picking up across the world, Africa can also look at service sectors for its vast population. By shifting focus from extractive industries, the country can look at service-based businesses like banking or hospitality which in turn can not just improve economic prospects but also enhance employment opportunities.
- Engagement for students: Numerous foreign universities and prestigious educational institutions are currently offering tie-ups and student exchange programs for illustrious students from Africa with the aim fo promoting higher education in the region.
Threats in The SWOT analysis of Africa
Threats are those factors in the environment which can be detrimental to the growth of the business. Some of the threats include:
- The threat from radical groups: There has been a surge in militant and terrorist activities in the region and also an increase in the number of racial groups many of which are promoting violence in the region.
- Negative perceptions of Africa: Africa is known to be a corrupt land, unsafe for residence, filled with social evils and strife with civil wars. These negative perceptions discourage investors from moving into the region.