Africa is the new China: Here is why you should care

Apart from the fact that one is a continent and the other a country, Africa is the new China.

This seems like an odd idea at first. After all, China has a booming economy, and African countries are poverty-stricken, politically volatile, and unjustifiable business risks. Right?

Wrong.

Africa is actually the next frontier in global expansion. Allow me to explain.

Pretend for a moment that you’re the CEO of a major American clothing manufacturer. Your company is thriving, but you want to diversify your sourcing chain. You typically outsource this production to Chinese companies, but the current rising energy and human capital costs are slowly eating away at your margins and making it a less attractive option. You want to seek an alternative, but you aren’t quite sure where to turn.

Read more: Africa's the new China — here's why investors should care

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