Cradle of humankind before 7 million years, Africa is considered one of the most virgin lands on earth. Virgin in terms of resource exploitation, agricultural unexplored lands and business opportunities.
With a population of 1.5 billion people and a continental GDP of $4,500 billion, Africa remains the poorest continent on the planet with an average of $3,500 per person. This potential for development represents an enormous business opportunity.
Africa is a rich land, probably one of the richest in the world, in fact the continent contains 30% of the world’s mineral reserves, including among others, 40% of gold, 60% of cobalt and up to 90% of platinum. Africa also contains 10% of the world’s energy reserves.
All of these resources are often exported in their raw state, a lack of valorization that represents a huge loss but also real opportunities for added-value creation.
Africa is also home to more than 16% of the world’s exploitable agricultural lands and 10% of the world’s renewable water resources as well as a very generous and untapped water table estimated at 100 times the annual water surface resources.
Invest in Africa
AFRICA, A SAFE BET
Africa enjoys its strategic location, at the intersection of all global air and sea trade flows, with its significant mineral, agricultural and population resources. Africa is becoming the safest investment.
Invest in Africa
5 Good Reasons to Invest in Africa
Africa is the most profitable region in the world.
Since 2011, Africa has recorded the highest rate of return on investment (ROI) in the world, at 14%, compared to 9.1% in Asia, 8.9% in Latin America and the Caribbean with a global average is 7.1%.
Economic growth prospects in Africa are among the most promising in the world.
Six of the 12 fastest growing countries in the world are in Africa (Ethiopia, Côte d’Ivoire, Mozambique, Tanzania, Democratic Republic of Congo and Rwanda).
According to the IMF, between 2018 and 2023, Africa’s growth prospects will be among the most attractive in the world. The good news is that sectors where foreign companies could have a comparative advantage, including banking, telecommunications and infrastructure, are among the drivers of Africa’s current economic growth – opening up clear investment opportunities for these companies.
Africa's young and growing population is a tremendous market.
The continent’s population is projected to quadruple from 1.5 billion in 2020 to 4.4 billion by 2100.
Africa’s young population contributes to the abundance of labor, which represents one of the greatest potentials for labor-intensive industrialization, and lowers production costs, resulting in benefits. The hourly wage in Africa is less than 50 cents (e.g., $0.27 in Mozambique, $0.34 in Nigeria, and $1.62 in Morocco), compared to $10.49 in the United Kingdom, $7.25 in the United States, and $6.57 in Japan.
Africa's large reserves of natural resources offer a promising future for value chain development.
The agriculture and extractive industries sectors are the backbone of national, regional, and global value chains. Africa is home to 60% of the world’s uncultivated land. In 2015, the continent produced 13% of the world’s oil, up from 9% in 1998. The growth in oil and natural gas production between 1980 and 2012 observed a remarkable trend: oil production increased from 53.4 billion barrels to 130.3 billion barrels; and natural gas production from six trillion cubic meters in 1980 to 14.5 trillion cubic meters in 2012.
At the end of 2012, Africa also controlled 53.9 percent of the world’s diamond resources. In 2017, the Democratic Republic of Congo alone accounted for 58% of the world’s cobalt (a material used in the production of electronic components) while in 2016 South Africa claimed 69.6% of the world’s platinum production (used in the manufacture of catalytic converters and other products). Actively investing in the upgrading of these products, among other extractive activities, will determine global economic activities over the next five decades.
Africa's economic transformation agenda is indeed underway.
Effective macroeconomic policies and improved governance are some of these developments. As an example, the 2017 Ibrahim Index of African Governance shows that Africa’s overall governance index has improved at an annual rate of 1.4 percent since 2007, an increase of more than 5 percent in at least 12 countries (including Côte d’Ivoire, Tunisia, Rwanda and Ethiopia). This progress is helping to rethink many investors’ perceptions of risk on the continent.
African governments should build on this positive trend to maximize foreign investment. This means, among other things, eliminating corruption; improving security and safety; strengthening the macroeconomic environment; investing in quality education and developing skills in science, technology, and innovation; and improving the quality of life of the population. And all what is still to be done is a huge business opportunity.
