Think of Africa and chances are that pictures of slavery, colonialism, civil wars, diseases, poverty come to mind. Such a vision has left investors and businesses with the impression that a commercial venture in Africa is risky, which is an unfortunate misconception. Africa is today a land of opportunities.
The economies of Africa are experiencing tremendous growth: Egypt, Morocco, Nigeria, Angola, Ghana and South Africa are among the ten fastest growing economies in the world.
Africa is the richest continent by far in terms of mineral deposits such as gold, diamond, cobalt, bauxite, magnesium, crude oil. As a matter of fact, 30% of the world's remaining minerals are in the continent.
A taste for goods
Africa has a growing middle class: 30% of the 1.27 billion population today. People in this segment has a taste for good food, houses, clothing, good education, and holidays. Estimates suggest that by the year 2100, 80% of the world population will be living in Africa and Asia, so it seems natural for business seeking to grow to explore the African market.
The labour market, for example, in an untapped driver of growth: 60% to 70% of the population are under the age of 25.
Investment opportunities
The factors making Africa a preferred destination for trade and investment will be highlighted at the upcoming event Investment Opportunities in Africa (IOiA) on 8 June 2019 in Milton Keynes.
IOiA 2019 is the first ever sole investment exhibition designed to bring the African High commissioner to the UK, senior African government officials and entrepreneurs together with key investors from across the world.
The event is organised by Way to Africa, a UK-based organisation that aims to promote Africa as a prime destination for businesses and investments.
This trailblazing event will focus on attracting investment into Africa's diverse business sectors including:
- agriculture
- renewable energy
- infrastructural development
- real estate
- health
- culture & tourism
- retail
- hotel & hospitality
- education
- mining
- technology
Industrial revolution
One major opportunity is Africa's ongoing industrial revolution, as local manufacturers increase the production of everything from processed food to automobiles.
The industrialisation process will accelerate Africa's manufacturing output to approximately double current amounts by 2025.
The most dramatic growth potential exists in regional processing. This includes sectors of food and beverage products and global innovation for local markets such as chemicals and automobile sectors. Revenue in these sectors has the potential to increase more than 200% and 500% respectively.
According to Acha Leke and Landry Signé, the analysts of McKinsey & Company and the Africa Growth initiative, respectively, while most growth is likely to come from manufacturing to substitute imports and meet local demand, which is great, there is also the untapped opportunity to grow exports and make Africa the world's next great manufacturing centre.
With all the favourable economic factors existing in most African countries, this is very likely to be achieved in the very near future.
Commenting on the event, Martha Owusu, Director Way to Africa, said: "At a time of uncertainty due to Brexit, it is time for companies and investors to explore markets outside Europe. Investment Opportunities in Africa is an event not to be missed."
