All roads lead to Africa now. If you aren't doing business with Africa, you aren't doing business.  

The conversation about Africa is shifting from one of “deficits” and “gaps” to one about opportunities, prospects, ventures and creativity. That’s not news to companies that have paid close attention to the continent and invested there. The fast growing youth population, the urbanization expected to drive over 50% of Africans to cities by 2050, and Africa’s formalizing economy are all well known. These trends and other developments have driven a half century or more of growth in Africa, and will continue to do so.

5 Reasons to invest and expand your business to Africa:

Africa has an exciting resource story
Africa has an exciting resource story Africa has rich resources in oil, natural gas, minerals, power, energy, food and
arable land. It has a land mass equivalent to Europe, the U.S, India, China and Argentina combined. Non-oil output is also expanding thanks to reforms in the energy sector.

Expanding economy
The International Monetary Fund predicts that seven out of ten of the world’s fastest-growing economies between 2011 and 2015 will be in Africa. Many sub- Saharan countries’ growth is predicted to rise from 5 to 5.5 percent per year as they emerge from the financial crisis.
Low debt levels, Africa has better debt to GDP levels than some developed countries. Alquity said that while the U.K.’s debt level is 77 percent, Nigeria’s is just 16 percent.

Growing workforce
Africa is enjoying a growing middle class and a youthful workforce, already equivalent to that of India. A growing consumer base will also be a positive for the economy.

Low correlation to other markets
Africa is relatively uncorrelated to developed and emerging equity markets, with a correlation of 0.27. According to Alquity, stocks are more driven by domestic factors. However, if China has a slower landing than expected, there will be weaker demand from African exporters and a knock-on effect on commodity prices.

 Africa as the next investment hub
  • Dubbed as the fastest growing continent with expected economic growth of 6-7% per year
  • The African continent is now home to 6 of the 10 fastest growing economies in the world.
  • Gulf region has already started investing in the African region seeing its high potential as an emerging market.  Among the investments made are in real estate, hospitality, finance and telecoms
The growth and impact of technology and innovation in Africa
  • More than half of Africa’s 1.1 billion people has mobile phone
  • The rise of technology and innovation in Africa is widely spread out across different sectors from education to energy, banking to agriculture
  • The rise of mobile innovation and wireless technology complements infrastructure facilities in its economic sense
  • Some of the most notable innovations and technologies in Africa: Diagnostic scanners on mobile phone, solar street lamps, MPESA
  • M-PESA has expanded to India, Afghanistan and Romania

As a new frontier and the next emerging market, Africa is a continent that GCC firms cannot afford to ignore. From Tunis to Cape town and from Dakar to Kenya, African societies exhibit unparalleled dynamism and changing attitudes. Several countries are currently linked to the information superhighway; some of them even have CNN or other European networks. This is a market ripe for picking by business. But the Gulf-based businessman must understand that they will have to compete with Europeans who have several centuries of historical relationship with Africans, as well as South Africans who currently are aggressively pursuing developing African markets.

Over the last 15 years, Africa has emerged as an attractive investment destination for international investors, supported by its robust real GDP growth, positive demographic factor, expanding urbanization and to the rising number of households with discretionary spending.

It is estimated that, African consumer spending is projected to reach $1.4 trillion per year by 2020, from $ 1.1 trillion in 2014.

Already, more than 100 million households have sufficient income to spend on discretionary goods and services, as well as the basics, and the continent has more middle-class households (defined as those with annual incomes of $20,000 or more) than India. Africa is predominantly a rural continent, yet its cities are a growing economic force.

Today, 40 per cent of Africa’s one billion people live in cities, relatively comparable to China’s population and higher than India’s.
By 2030, that share is projected to rise to 50 per cent , and Africa’s top 18 cities will have a combined GDP of $ 1.7 trillion.
Urban expansion is spurring the construction of more roads, buildings, water systems, and similar projects, that is, more infrastructure investment is needed across Africa.

On the back of Africa’s recent economic, business and regulatory reforms developments, the continent is offering a lucrative business opportunities in many sectors including among others agro-processing industries, such as food and beverage manufacturing, textiles, leather goods, and wood products.

In addition, Africa is offering an attractive pharmaceutical market, retail, tourism and construction.
Africa is the continent of future It´s business realities have left old perceptions far behind. Growth is more sustained and diversified than ever before. Income per capita will grow by 50% over the next twelve years, turning it into one of the world's most dynamic regions. Reforms and entrepreneurial drive have transformed Africa into a continent of opportunities that can no longer be ignored.

The question is no longer whether African countries will be the next development success stories, but when. African economies have emerged from the global financial storm much faster than their Western peers. Average growth has been nearly 6% in 2012, up from 3.1% in 2009. Between 2012 and 2016, Sub-Saharan Africa growth will be 4.9% compared with 2.9% globally. Half of the world's ten fastest-growing countries are in Sub-Saharan Africa. Economic output in the region is set to double and per capita income to grow by 50% within the next twelve years.  Due to the considerable progress that many countries have made in terms of political stability, macroeconomic health and business conditions, sustainable growth in Africa is the new reality. 

Africa's demographic trends are further fueling this growth. Africa's middle class of 313 million people, or 34% of its entire population, is larger than the entire population of the United States and on a par with the middle class of India. Africa is gaining 5 million of these new consumers each year. The number of mobile phone users has grown 40% every year during the last decade, from 12 million in 2000 to 343 million in 2010.

Cities are ballooning at the rate of 3.5% a year and the continent will soon have the world's largest labor force. In many countries across Africa, the median age is under 20, compared with just fewer than 30 in Asia and just fewer than 40 in Europe. Africa's working age population will continue to expand after 2050.

​The continent's natural resources are also full of untapped potential. Africa is home to 10% of the world's oil reserves, 40% of gold reserves and about 85% of chromium and platinum group metals, wide swaths of which are still to be mined. And much of the continent's territory remains to be fully surveyed by geologists. 

In addition, 60% of the world's remaining uncultivated land is in Africa. Rising commodity prices are providing an ever greater incentive to cultivate these areas. Revenue from agriculture is set to grow about 4% a year to USD 320 billion by 2020, which is positive news for the two-thirds of Africans who live in rural areas and the 70% who make their living from agriculture.

Africa Today:

Africa’s collective DGP in 2008, roughly equal to Brazil’s or Russia’s.
Africa’s combined consumer spending in 2008.
the number of new mobile phone subscribers signed up in Africa since. 2000.
Africa’s share of the world’s total amount of uncultivated, arable land.
the number of African cities with more than 1 million people each.
the number of African companies with revenues of at least $3 billion.

Africa Tommorrow:​

Africa’s collective GDP in 2020.
Africa’s consumer spending in 2020.
the number of Africans of working age in 2040.
the number of African households with disdretionary income in 2020.
the portion of Africans living in cities by 2030.