The Emergence of A New Africa Story
Most international businesses are still not very aware of Africa’s investment opportunities. Information costs are high: Africa is fragmented into many different countries, and even in aggregate the continent is a fairly small economy. For several decades, investor ignorance did not matter: with few exceptions Africa’s economies were too badly run for there to be many opportunities for firms of integrity. But there has been a sea change—Africa is on the move. There will be ups and downs, but investors from the countries of the Organisation for Economic Co-operation and Development (OECD) who remain set in their ways may be missing a giant business opportunity if they fail to pay attention to the changes afoot.
Read the full article here: The case for investing in Africa
Rise of The African Consumer
Africa’s economic growth accelerated in the years following 2000, making it the world’s second-fastest-growing region after emerging Asia and equal to the Middle East. It comes as a surprise to many that resources contributed less than a third of total GDP growth in the 2000s (before the onset of the financial crisis in 2008), while 45 percent of growth came from consumer-facing or partially consumer-facing sectors. The African market opportunity is concentrated, with 10 of 53 countries – Algeria, Angola, Egypt, Ghana, Kenya, Morocco, Nigeria, South Africa, Sudan, and Tunisia – accounting for 81 percent of Africa’s private consumption in 2011.
Private consumption in Africa higher than in India or Russia; it rose by $568 billion from 2000 to 2010. From 2012 to 2020, consumer-facing industries are expected to grow a further $410 billion, representing the continent’s largest business opportunity. Apparel, consumer goods, and food are expected to account for $185 billion, or 45 percent, of that amount.
This is due in part to urban Africans spending a large share of their budgets on food and groceries than consumers do, on average, in Brazil, China, India and Russia.
Read the full article here: Rise of the African consumer