Africa turning into global hub of business activity and investments
In today’s multi-polar world, Africa is no longer a land of exploitation. It's rather a hub of business activity and investments.
The United States knows it, Europe knows it, and most of all China knows it. Across the whole African continent, Chinese enterprises are investing heavily in crucial transportation and network infrastructure.
Gone are the days when Africa was known just for war, poverty, Ebola, and diamond mines.
Africa’s youth today are well informed and are headed in the right direction. They are starting businesses, launching apps and software, initiating major business ventures and entrepreneurial projects.
According to Quartz, Rwanda, Sudan and Ethiopia have an estimated growth rate of 7 percent and above. African economy stands today at $2.6 trillion, whereas annual consumer and business spending is at $6.6 trillion.
Nigeria, Egypt, and South Africa collectively account for the largest percentage of African GDP.
The Rise of Africa
African population stands today at 1.2 billion which is expected to grow by more than 500 million by 2030. According to researchers at the Brookings Institute, more than 80% of this growth is concentrated in urban areas making Africa the fastest urbanizing region in the world.
This will push the African companies to compete and come at par with their European and American counterparts like Walmart, Amazon, and eBay.
Led by strong economic growth, rising prosperity, booming middle class, and a more tech-savvy generation, 21st century is going to usher in a new era for Africa.
Economists have predicted that sooner or later, the Asian miracle will come to a halt and the age of Africa will begin. By this century, African role in global affairs will become very important as opposed to being a silent spectator in its present state.
Charles Robertson, the global chief economist for Renaissance Capital, has stated that African GDP would reach a staggering figure of $29 trillion by 2050.
Many corporations in Africa have revenues ranging in tens of billions of dollars and this trend represents a strong trust in these companies and the overall African economy. It serves as an important indicator to many investors who are exploring African markets and finding the right place for investment.
In their new survey, McKinsey Africa has found 438 companies with $1 billion in annual revenue. Of them, 25 percent are foreign-domicile multinational franchise companies, 50 percent are of local ownership, 40 percent are publicly listed, and 60 percent are privately held.
(Source: Yahoo finance)