Why do business in Africa one might ask? But I actually doubt that people who know business and understand where the world economy is going would ask this in 2020. For starters, six (6) of the world’s ten (10) fastest growing economies are in Africa. Also, the ease of doing business on the African continent has seen significant improvement to the extent that a good number of countries (including South Africa, Ghana, Mauritius and Tunisia) now outperform China, India, Brazil and Russia. Additionally, Foreign Direct Investment (FDI) inflows to Africa have demonstrated year-to-year growth since 2010 and now amounts to more than 50 billion US Dollars.
Thing is, Africa as a train has already left the station and if as a business you’re not looking to join on, you are likely on the risk of being left out.
The forecasts for the upcoming years for the continent despite COVID-19 are looking promising which has led to optimistic outlooks among those early movers who have already identified the huge potential of the African continent. A continent with about one and a half billion people spread across 54 markets, this is the definition of huge. The time for forward-thinking businesses to seize the opportunity and accept the African invitation is now. We at Jua Digital are here to assist your business(es) as you take the worthwhile decision to explore, embrace and deepen your stake in a continent of opportunities. Our deep insights would see to it that your vision and efforts are translated into sustainable commercial success.
Africa’s Attractiveness in Figures
Population and Demography
- 40% of the world’s population would be in Africa by the year 2050
- The majority of Africa’s population (50% plus) is below the age of 20. This makes it the world’s youngest continent, which means that in the next few years, the world’s most vibrant market would be in Africa (in comparison, 28% of China’s population is under 20).
- As an offshoot of the point above, 500 million of Africans are currently between the age of 18 and 24, with majority promising to end up in the ever expanding African middle class. By 2040, 1.1 billion Africans will be within this age bracket… Wow!
- Consumer expenditure in Africa is expected to rise from about 600 billion US Dollars in 2010 to more than 1 Trillion US Dollars by the close of 2020.
- Most Africans spend a large chink of their earnings (45%) on food and groceries; this is more than the average consumer in Brazil, Russia, India and China.
- More than half of all African households are expected to have disposable income in the first half of the 2020 years.
- The African consumer industry i.e. retail, wholesale, banking, telecommunication, tourism and others are expected to grow past the 400 billion USD point by the close of 2020. This is also project to grow exponentially subsequently.
- The average annual return on capital of African companies have been between 65 and 70 % or even higher than that of comparable investments in China, India, Indonesia and Vietnam.