"Africa's time has come. With a total poplulation of over one billion (more than half of which is under the age of 20) and the world's largest workforce within the next two decades, Africa will be one of the biggest under-penetrated markets."

These are the words of Prof Johan van Zyl, former Group Chief Executive Officer of Sanlam Limited and Professor Extraordinary in both the Departments of Agricultural Economics and Economics at Stellenbosch University.

In a special lecture at the Faculty of Economic and Management Sciences recently, Van Zyl said one of the key drivers behind Africa's future growth will be foreign direct investment within an improved bussiness environment. This will lead to the modernisation of Africa's economies.

Another key driver will be technological 'leap-frogging' resulting in developments in the communications and financial arenas on the back of accelerating urbanisation and growing retail opportunities.This will lead to meaningful sustainable economic transformation.

Despite substantial scepticism about Africa acting as a barrier to some new investors, Van Zyl said many investors are already doing business successfully in Africa. He added that first-mover advantages are evident in many sectors.

Successful companies, he said, recognise that Africa is not a single country but has over 50 distinct markets. The business model of most of these companies is underpinned by a partnership approach and they rely heavily on local talent, which is supported by a small number of expatriates. They also invest in training and development of local staff, and the alignment of softer issues such as values.

"Success requires careful planning over a longer term. Patience, persistence and flexibility are essential as deal-making in Africa takes longer," Van Zyl said. "One has to have a positive and 'can do' attitude."

"While doing bussiness in Africa is not easy and requires special effort, the rewards are more than adequate to compensate for these efforts and other risks."

Photo: F.l.t.r. are Professors Stan du Plessis, Dean of the Faculty of Economic and Mangement Sciences, Johan van Zyl and Wim de Villiers, SU Rector and Vice-Chancellor.