GE opportunites for Africa Growth27 Aug 2018 20:12
Article kind of catching up what we've all been saying for a while about opportunity for growth and value creation in Africa, and how GE is uniquely positioned. Great to see it effectively pointing to projects like Ncondezi. Sense, going forward, Ncondezi is a significant piece of the puzzle, one GE will be extremely eager to present to the market, especially as a concrete signal of its turnaround.
https://seekingalpha.com/article/4202266-general-electric-excellent-potential-least-expect
ummary
- For all its problems, General Electric is not without attractive opportunities.
- In the next several years, as Sub-Saharan Africa continues to develop, the company will have a real opportunity to benefit.
- In several key sets of operations, the conglomerate already has a nice presence and it can capitalize on this paradigm shift.
- It will be a long road, but investor s who are in it for the long haul should watch over all of this carefully.
Most investors, myself included, generally think of General Electric (GE) as a US company, but what we don’t tend to think too much about is the potential the business has to expand through other nations or even entire continents. Such is the case with the conglomerate and its business in Africa. As the continent undergoes a global transition, General Electric stands to benefit nicely and in a way that, at least initially, few firms can. This, in turn, could be setting the stage for additional strong value creation from the business for several years to come, something that shareholders, at this time in General Electric’s history, desperately need.
Big opportunities in Africa
At this time, the population throughout all of Africa appears to be around 1.3 billion to 1.4 billion. This means those living there represent about 16.6% of the planet’s population. However, with nominal GDP of just $2.19 trillion, the continent appears to account for a paltry 2.8% of the world’s $79.3 trillion in aggregate GDP. This kind of relationship is especially bad in Sub-Saharan Africa. To some, this may seem like a long-term issue that won’t show any material improvements in the years to come, but the fact of the matter is that a great deal of growth is slated to occur in key markets over the next decade or so.
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