Africa is the world’s second-largest continent and home to more than a Billion People. Africa is booming! And here is why investors and entrepreneurs are flocking to the mainland in search of business opportunities.
Latest Trends for Africa
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Vast Untapped Opportunities
Africa is home to some modern and prosperous nations like Nigeria, Egypt, South Africa, Morocco, and Ghana, etc. ae to name a few. These nations, along with others, possess considerable potential for the growth of capital investment.
Investors worldwide are currently investing in infrastructures like roads and power, which will uplift Sub-Saharan Africa’s productivity and spearhead trade growth. Investment opportunities also include storage and distribution; according to the World Economic Forum, 50% of the agricultural produce of the continent is spoiled before it reaches the markets. IT is another booming sector of the continent attracting foreign investment.
We have only scratched the surface of the investment opportunities, and investment inflows are currently trending in Textiles, Construction, Electronics, Power Sector, Retail, and Agriculture sectors.
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Bourgeoning Middle Class
Investors benefit from Africa’s growing Middle Class in metropolitan cities like Lagos, Cairo, Accra, and Johannesburg. This demographic is characterized as educated, young, urban professionals, brand-aware, and sophisticated. Retail and fashion brands from around the globe can anticipate strong consumer demand in high-quality lifestyle brands.
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Continental Free Trade Agreement
Perhaps the essential feature of the African market is the 54 Nation ‘Continental Free Trade Area.’ It is essentially a free trade agreement between the member states. The deal opens doors for investors looking to establish multiple production and assembly plants in the continent where goods can move freely between borders.
That could lead to development in electronics, machinery, chemicals, textile production, and processed foods. The trade agreement also means that an investor in Lagos (Nigeria) can easily access the majority of the African market.
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Digital Transformation
Africa is transforming digitally; the continent is home to several mini silicon valley’s spread across major cities. According to the United Nations, 70% of the population is below the age of thirty. African developers have already sold popular applications to tech giants like Apple. The majority of the people in developed nations across the continent have access to mobile phones and the Internet.
Therefore, tech giants and investors from around the globe can flock to Africa to introduce digital products, benefit from an educated tech-savvy workforce and explore the potential in IT infrastructure.
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Natural Resources
Africa is home to vast natural resources like diamonds, copper, lead, cobalt, sugar, salt, silver, coffee, etc. Most recently, hydrocarbon reserves were discovered in countries like Nigeria, Libya, and Sudan. Investors can benefit from tapping into the natural resources as existing sites become scarce. An example is the silicon shortage currently being faced around the world.
In conclusion, businesses and investors across the globe are looking to diversify and in search of new markets for sustainable growth. With globalization and only a few remaining frontiers, Africa seems to be just the perfect market they are looking for.