SOUTH AFRICA: Asia more compelling than Africa - Ford CFO
Africa may be growing quickly, but it still offers less opportunities than more robust emerging markets such as China and India, Ford's CFO said in South Africa on Tuesday.
With an an average economic growth rate of 4%, Africa is seen as an increasingly attractive investment target for major multi-nationals, Reuters noted.
Wal-Mart recently paid US$2.4bn for a controlling stake in South Africa's Massmart, citing room for growth on the continent, where disposable incomes are rising quickly, the news agency said.
But Ford CFO, Lewis Booth, currently visiting South Africa, said the African growth story may need some time.
"We are saying in Africa ... GDP per capita is still quite stressed. We are not expecting dramatic industry growth," Booth told reporters on a visit to Ford's plant in Pretoria.
Ford, which is working to increase sales by 50% by 2015, is betting more on Asian countries such as China and India for growth, he said.
"In this decade the growth will be dominated by Asia-Pacific countries and perhaps Russia and Brazil."