Africa is a continent bursting with opportunity. It has a rapidly growing population, abundant natural resources, and a favourable business environment. With these in mind, let’s look at six reasons why you should invest in Africa:
1. A growing middle class
According to the African Development bank, the amount of middle-class Africans has tripled to 313 million (approximately 34% of the continent’s population) over the last 30 years. This growth shows a health market is being established. Though brands entering Africa need to be aware of the income discrepancies between different African countries.
2. Eager digital adopters
Though we may not rank high with the number of digital adopters there are in Africa, the pace with which digital adoption and infrastructure buildout are happening is faster on the African continent than in any other region in the world. With this trend, businesses can reach customers through both digital and traditional media.
3. Abundant natural resources
With much of Africa’s natural resources being untapped, there are many ways a business can invest in Africa. With there being a global drive for renewable energy, some of the countries which are on the Equator will be in prime positions to capitalise on renewable energy.
4. Industry diversification
While in the past Africa was focused on mining, oil and gas industries, it is now becoming more industrialised and many governments are focusing on developing other industries in their countries. This diversification opens up the continent for companies to invest in Africa.
5. Africa is becoming more connected
As of February 2023, 54 African nations have signed the African Continental Free Trade Area Agreement. This agreement is designed to assist in the trade between African countries.
6. Young and urban
There is an estimated 1.4 billion people in Africa. Of this population, about 44% live in urban areas and the median age is 19. With these statistics, we can see as Africa becomes more industrialised there will be a lot of young people coming into the workforce.
The youth are also more willing to adopt new ideas and new technologies which makes Africa an exciting market to be part of.
These are the six main reasons to do business in Africa as it is a growing market which many opportunities for people who are willing to explore Africa and collaborate with the rich diversity of people in it.
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