What Is Driving Business Investment in Africa? Can You See the opportunities?

  • More than 50% of Africa’s population is under 20 years old, making it the world’s youngest continent – in comparison only 28% of the population of China is under 20 years old.
  • 500 million Africans are between the age of 18 and 24.
  • By 2040, African population forecast is 1.1 billion — more than in China or India
  • Consumer expenditure is set to rise from USD 600 billion in 2010 to nearly USD 1 trillion in 2020
  • Urban African consumers spend the largest share of their budgets (45%) on food and groceries –more than the average consumer in the BRIC countries (Brazil, Russia, India and China, deemed to be developing countries at a similar stage of newly advanced economic development, on their way to becoming developed countries
  • More than half of all African households are projected to have discretionary income by 2020 – corresponding to almost 130, 000 households (income remaining after deduction of taxes, social security charges, and basic living costs)
  • Consumer Industries (retail/wholesale, banking, telecommunication and tourism) in Africa are expected to grow by USD 400 billion by 2020, with apparel, consumer goods and food accounting for $185 billion
  • GDP growth for the continent is forecast at 5.4% in 2013 and 5.7% in 2014
  • 6 of 10 of the world’s fastest growing economies are currently in Africa
  • FDI inflows to Africa have increased by 13.6% and FDI outflows by 55.6% since 2010 (Foreign Direct Investment is an investment in the form of a controlling ownership in a business in one country by an entity based in another country. It is thus distinguished from a foreign portfolio investment by a notion of direct control.)
  • Average annual return on capital of African companies was 65-70% higher than that of comparable companies in China, India, Indonesia, and Vietnam
  • Africa is the continent which owns, more than any other, the potential to realize sustainable economic growth. This potential is still mostly undeveloped and the use of new technologies, advanced productive processes and international trade partnerships will allow a steady development along new business routes.
  • The African continent is blooming. The continent offers more investment opportunities than any other continent.
  • The drastic increase in the number of middle class families and acres of unused fertile land is an attraction for investors from around the world.
  • Currently, 6 of the world’s 10 fastest growing economies are in Africa.
  • The ease of doing business in Africa is improving to the extent that a good number of countries (including South Africa, Ghana, Kenya, Mauritius and Tunisia) now outperform China, India, Brazil and Russia

Africa’s large population, the growing fast growing economies, natural resources and the youth are the GOLD of Africa…..It is Africa’s time to rise!

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