Awakening Africa Magazine


7 Things You Didn’t Know About Investment in Africa

2 Mins read

1- Africa Has The Highest Return On FDI

According to the United Nations, Africa is the most prosperous region globally in terms of return on Foreign Direct Investment (FDI). Africa has a return of 11.4% compared to 9.1% in Asia and 8.9% in South America. The global average return on FDI is 7.1%. The statistic is a positive sign for potential new investors and represents the bourgeoning economies of Africa. Several foreign businesses and investors have benefited from the bountiful profits. Google recently announced its plans to invest a whopping 1 billion US Dollars in the continent. 

2- Duty-Free Access to US Market

Did you know that you can trade freely with the United States if you invest in Africa? The US has passed a bill known as the African Growth Opportunities Act (AGOA), allowing nations in Sub-Saharan Africa to have duty-free access to the enormous United States market for over 1,800 products. 

Hence, the AGOA opens doors for investors of several industries like Textiles, Fashion, Construction, Chemicals, Electronics, etc., to have duty-free access to the US market, putting their business at a significant advantage over their competitors. 

3- You Can Trade Freely Within Africa  

In 2018, the African Union signed ‘The African Continental Free Trade Area’ whereby 54 out of 55 nations of the continent will trade freely among themselves. This means if you invest in a particular country in Africa, you will have easy access to the markets of the countries in the rest of the continent. Moreover, multinational conglomerates can easily set up assembly and production plants quite quickly across the continent. 

4- Best Growth Prospects  

According to the UN, 6 of the 12 most fastest-growing nations are from Africa? According to the International Monetary Fund (IMF), Africa has the highest growth prospects until 2023. The sectors with the highest expected growth are banking, telecommunication, and infrastructure. 

5- Youngest Population In The World 

According to the UN, Africa has the youngest population in the world. Around 70% of the population is below the age of thirty. This provides investors with an ample amount of labor force. Moreover, the cost of labor is one of the lowest globally, which provides a massive advantage for labor-intensive factories. 

6- Massive Natural Resources   

Africa is home to one huge deposit of untapped Natural Resources waiting for foreign investors. According to the UN, Africa has 53.9% of the world’s diamonds, 69.6% of the world’s platinum, and 58% of the world’s cobalt. The region is also rich in oil. As of 2015, the continent produced 13% of the global oil supply. 

7- The Digital Age Of Africa 

Africa is undergoing a digital revolution. Mini silicon valleys have sprung up in the metropolitan cities across the continent. According to the GSMA, 475 million people in Sub-Saharan Africa will be mobile internet users by 2025. Coupled with the young tech-savvy generation, African tech startups are famous for their applications across the world. Hence, the continent provides a highly lucrative investment opportunity for the tech—giants across the globe.  

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