Europe > Western Europe > Germany > Tougher business for German firms in Africa

Germany: Tougher business for German firms in Africa

2016/01/07

Business sentiment part German enterprises operating in Africa is deteriorating, a fresh poll by the German-African Business Association showed Tuesday.

Only 10 % of the executives polled say their current business situation is good, compared with 35 % of respondents calling it unsatisfactory.

That's completely a deterioration from last year at the same time as only 6 % of those polled felt negative about their business situation in Africa, with 47 % stating they were OK.

Continent of growth

"The business environment in Africa was a lot additional difficult in 2015 as compared with the previous years," the association's president, Stefan Liebing, said in a press release. "Low raw materials prices, political uncertainty amid numerous election campaigns, but as well the strong depreciation of some African currencies have all contributed to dampening German companies' spirits," Liebing added.

German companies doing business in Africa are increasingly unhappy about their current situation, a poll has found. Red tape, political uncertainties and low raw materials prices are among the most critical issues.

Surprisingly, executives largely have positive business expectations for the whole of 2016, with only 10 % of respondents fearing a decline in their Africa business. Liebing agrees that the prospects for above-average increase remain high on the continent.

Asked about the majority interesting and lucrative African markets right presently, German companies mentioned Ghana, Nigeria, Ivory Coast, Kenya and Tanzania, with South Africa dropping out of that most-favored inventory for the initial time.

The German African Business Association is a foreign trade organization representing the interests of over 500 member companies.

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