Emerging Markets and Untapped Supplier Potential
Africa is often underestimated and misunderstood as a growth market for business, but the potential for business to play a transformative role in solving the continent's biggest challenges should not be overlooked. Contrary to popular belief, there are over 400 companies in Africa that earn annual revenues of $1 billion or more, and they are outperforming their global peers in terms of growth and profitability.
Africa's fast-growing population and markets present significant opportunities for business, especially in an environment of slowing global growth. However, greater innovation and investment from businesses are essential to meet Africa's unfulfilled demand for goods and services, close infrastructure gaps, create jobs, and decrease poverty.
There are five bold business opportunities in Africa that should not be overlooked:
A Population That is Fast Growing and Urbanizing: Africa's current population of around 1.2 billion people is projected to reach 1.7 billion by 2030. With more than 80% of Africa's population growth expected to occur in cities, there are growing markets in various sectors, including food, beverages, pharmaceuticals, financial services, healthcare, and education.
Africa is Industrializing: An African industrial revolution is underway, with the opportunity for African industries to double production to nearly $1 trillion within a decade. Manufacturing, tourism, agro-industry, and information and communications technology-based services are key sectors driving this growth.
Africa is Pushing to Close its Infrastructure Gap: Poor infrastructure has been a key impediment to investment and growth in Africa. However, Africa's annual investment in infrastructure has doubled to around $80 billion a year since the beginning of this century, presenting a significant opportunity for investors and entrepreneurs to help solve Africa's infrastructure challenges.
Innovations to Unleash Agricultural and Resource Wealth: Africa is rich in both agricultural and mineral resources, but translating these resources into shared wealth and sustained economic development has been a challenge. However, new innovations and investments promise to change this and create exciting growth opportunities, particularly in the oil and gas sector.
The Potential of Increasing Digital and Mobile Access: Sub-Saharan Africa has seen rapid growth in broadband connections and mobile data traffic. With over 120 million active mobile money accounts, Africa has leapfrogged traditional banking products, allowing companies to improve productivity, speed up transactions, and access wider markets.
It is worth noting that Africa's economic landscape is diverse, with different countries and cities offering unique opportunities and challenges. Investors and businesses must tailor their strategies to specific regions and sectors to succeed in Africa's emerging markets.
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