A recent survey by africapractice has revealed that Africa's businesses are looking forward to significant growth in 2010.

Business leaders maintain a positive outlook for 2010, with 95% of those surveyed expecting to expand their business over the coming year.

This was among the findings of a survey of business leaders of companies invested in Africa across a range of sectors by africapractice, a strategic communications consultancy with a network of offices across the African continent.

The results of africapractice's annual business survey support the growing belief that Africa is beginning to recover from the financial crisis. 100% of respondents said that they anticipate levels of foreign direct investment to rise in 2010, the majority expected to come from China. This represents a much-improved outlook when compared to last year's survey, in which 69% of respondents predicted a reduction in FDI flows.

When asked what they thought would be the biggest challenges to their business in 2010, executives were split between access to credit and availability of talent, which received 35% and 30% of votes respectively.

This echoes the organisation's 2008 survey in which 31% of respondents cited talent as the biggest concern. Physical infrastructure and legislative environments were also cited as potential growth limitations.

The future role of the United States prompted a mixed reaction, with only 17% of business leaders expecting the Obama administration to have a positive influence on Africa.

However, there is a consensus of optimism surrounding the impact of the FIFA World Cup, although most (54%) believe that benefits will be felt only in South Africa itself.

The majority of respondents cited advancements in technological infrastructure as being more significant for business opportunity than politics, thus reaffirming the common assertion that ICTs are key enablers of productive business.

2010 offers "significant growth in Sub-Saharan Africa", commented Bob Chestnutt, Project Director of Aldywych International, one of the respondents.

"Countries that have promoted sector reform and that have welcomed the private sector should enjoy the prospect of seeing an increasing number of well structured projects reach financial close."

Zimbabwe was highlighted as an opportunity for growth by another respondent, Richard Watermeyer, MD of Guy International SA. "I expect there to be good growth opportunities and a demand that we will struggle to meet. Agriculture is where the significant growth will be for Zimbabwe in 2010."

The africapractice survey of business leaders was conducted in the first last two weeks of November 2009 and involved interviews with 37 executives from telecoms, beverages, banking, media, private equity and mining businesses invested in Africa.

When asked, 'What will be your company's biggest challenge in 2010?' the responses were as follows:

Talent— 35%
Credit – 30%
Infrastructure— 9%
Political instability—5%
Political / legal infrastructure – 5%
Crime / Security—0%
Other — 16%

When asked, 'What investment plans does your company have in 2010?' responses were:
Expand significantly – 68%
Expand slightly – 27%
Maintain existing business levels – 5%
Reduce slightly – 0%
Reduce significantly – 0%

When asked, 'Do you expect Foreign Direct Investment (FDI) in Africa to grow in 2009?' responses were:

Yes, with the greatest proportion coming from China – 83%
Yes, with the greatest proportion coming from Europe – 11%
Yes, with the greatest proportion coming from Asia excl China – 3%
Yes, with the greatest proportion coming from Latin America – 0%
Yes, with the greatest proportion coming from other African nations – 0%
No, FDI flows will reduce slightly – 3%
No, FDI will reduce significantly – 0%

When asked, 'Do you think the FIFA World Cup 2010 is going to benefit the continent?' responses were:

Yes, but only in South Africa – 54%
Yes, we should see increased investment in a number of countries – 27%
No, I don't think Africa has taken advantage of business opportunity –19%

When asked, 'Do you think the new US administration will have a positive impact on Africa?' responses were:

No, nothing will change, the US isn't interested enough – 33%
Yes, Obama has big plans for Africa – 17%
No, nothing will change as US has little influence – 17%
Other – 33%

When asked, 'What are the most significant developments that you can foresee next year in Africa, aside from FIFA World Cup?' responses were:

Elections in Central African Republic, Ethiopia, Guinea, Sudan, Tanzania – 8%
Technology investments, improving quality and reducing cost of communication -56%
EAC Customs Union coming into force – 16%
Other - 19%

Increased intra-African business and moving away from a reliance on international exports was cited as key in Africa's private sector development with Alasdair Munn, Director of Rebuild Zimbabwe commenting, "The biggest market for Africa is Africa herself. Growth in private investment and empowering communities has greater potential for Africa than just exports. The growth of development in Africa, in partnership with Africans according to local resources, needs and objectives is becoming a more accepted model than attempting to transfer Western developmental models to the continent."

The importance of communications in Africa's growth was cited by Salim Amin, Chairman of A34 Media.

"An improvement in communication around the continent, especially in internet and mobile phone access, will give us increased opportunities to reach more people on our continent. The interest in Africa because of events like the world cup will also throw larger spotlight on the continent and hopefully increase interest in stories from Africa that are more positive."

Marcus Courage, Managing Director of africapractice said, "It is fantastic to hear business leaders speaking so positively about Africa again, with so many expecting their businesses to grow significantly in 2010. However, finding talent and access to credit are recurring challenges, which should act as a clarion call to both government and the private sector about where investment needs to be made, in order to facilitate and encourage further growth."

For further information about the survey: www.africapractice.com

Images: Johannesburg, Gauteng (Chris Kirchhoff) and Nelson Mandela Bay Municipality - www.mediaclubsouthafrica.com