In: Finance
Apply the PESTEL framework for Africa the continent?
PESTEL stands for Political, Economic, Social, Technology,
Environmental and Legal factors.
PESTEL analysis is used to find out the relative merits and
demerits of a country or an economy based on the above mentioned
factors.
In Africa, most of the countries have medium to stable political
regime with only few countries having situations of civil war.
Hence political factor is STABLE.
With regards to economic factor, almost all countries are poor and
have low income levels and hence economic condition is LESS THAN
AVERAGE.
With regards to social environment, there is stability and a large
youth population which could lead to high productivity and hence
this factor is CONDUCIVE.
Technologically, the continent is not very developed and still lags
the major economies of Europe and North America and though the
techical adoption has started to increase, there is still a long
way to go. Hence factor rating is LESS THAN AVERAGE
With regards to environmental factor, the continent is known for
its rich and diverse flora and fauna. It has a favorable
environmental conditions without very harsh climate and weather
conditions. So broadly favorable
The legal system in many countries are not very efficient and prone
to corruption and hence needs significant improvement